An Elon Musk April Fools?

The Need-to-Knows

As of Wednesday, SpaceX has confidentially filed to go public, beating out OpenAI and Anthropic. Internally known as Project Apex, it’s expected to list on the Nasdaq this June or July. Analysts estimate the value of the Elon Musk-owned rocket company at roughly $1.5-$1.75 trillion, with the IPO raising a historic $40 to $80 billion for the company and floating roughly 3.3% of its equity (Morningstar). 

Currently, 21 banks are poised to help bring the IPO to market, with Goldman Sachs, Morgan Stanley, JPMorgan Chase, and Barclays on board to name a few (Reuters). 

Furthermore, Elon Musk himself has denied claims that SpaceX would exclude Robinhood Markets and SoFi Technologies from its IPO. Up to 30% of the offering could go to individual investors, triple the typical retail investor allocation in an IPO (Motley Fool).  

Why the IPO is needed and why it’s a Big Deal

SpaceX bundles AI, space infrastructure, defense, and internet, giving investors the ability to tap into the space sector for the first time. The “frontier tech” IPO would be a strong indicator for market appetite, as a success would restart the global IPO cycle (which has been weak since 2022), while a failure could freeze large tech listings for the foreseeable future. 

Intending to raise $75 billion, SpaceX aims to double the previous largest IPO in history, Saudi Aramco’s $29.4 billion in 2019. The company needs capital to continue funding expensive projects, such as Starship development and expanding the Starlink satellite network. 

While Starlink internet and its rockets may be enough to justify SpaceX’s trillion-dollar estimate, the company has never released a public financial statement, leaving investors in the dark and its true value ambiguous. Going public would lead to the release of previously private financial information (such as quarterly earnings and margins), increase public scrutiny of how the company is operated, and lower Musk’s overall stake in the company.