TLDR
- SpaceX is exploring a 2026 IPO that could raise over $25 billion and achieve a valuation exceeding $1 trillion
- The aerospace company currently operates over half of global orbital launches and has 8 million Starlink subscribers
- Tesla shareholders may get opportunity to invest in SpaceX through cross-company stake, per Wedbush analyst
- EchoStar shares surged 17.2% in two trading sessions on IPO speculation due to its SpaceX holdings
- Data shows 38 out of 45 highly-valued IPOs since 1980 traded lower three years after going public
SpaceX is moving closer to going public. The rocket company is exploring a 2026 IPO that could raise more than $25 billion.
Bloomberg broke the story earlier this week. The potential offering could value SpaceX at over $1 trillion.
The company is currently valued at $400 billion privately. That makes it the world’s most valuable aerospace firm right now.
SpaceX launches more rockets than any other company. It handles over half of all orbital launches globally.
The company also operates Starlink. The satellite internet service has more than 8 million paying customers.
Some projections put SpaceX’s IPO valuation at $1.5 trillion. Analysts think it could climb to $2 trillion once shares start trading.
Elon Musk said SpaceX is already cash-flow positive. The company doesn’t have an urgent need to raise capital through an IPO.
But investors have been waiting years for a chance to buy SpaceX shares.
How Tesla Could Benefit From SpaceX IPO
Wedbush analyst Dan Ives made a prediction that caught attention. He said Tesla will likely take a stake in SpaceX during the IPO process.
Ives rates Tesla shares as a Buy. His price target sits at $600 per share.
Tesla shareholders recently voted on a related proposal. The vote covered whether Tesla should invest in xAI, another Musk company.
The vote was nonbinding. Many shareholders didn’t participate.
A SpaceX investment could be part of a bigger plan. Musk runs five companies including Tesla, SpaceX, xAI, X, and The Boring Company.
Combining these businesses under one corporate structure comes up in discussions. Nothing has been finalized yet.
Market Reaction Shows Strong Interest
EchoStar owns about $11 billion worth of SpaceX stock. The company’s shares jumped after the IPO news hit.
EchoStar stock rose 6% on Tuesday. It climbed another 11.2% Wednesday to reach $103.98.
Other space companies also moved higher. Rocket Lab USA gained 7.7% on Wednesday. Firefly Aerospace added 9.5%.
Christopher Marangi from GAMCO Investors said his firm has SpaceX exposure through EchoStar. GAMCO would be interested in space-oriented companies going public.
Dan Hanson manages the Neuberger Berman Quality Equity Fund. His fund holds about 5% in unlisted SpaceX shares as of November.
Hanson called SpaceX a unique situation. The company has both established operations and future growth potential.
Valuation Questions Remain
Cathie Wood from ARK Invest thinks SpaceX will be worth $2.5 trillion by 2030. She projects nearly $200 billion in annual sales by that year.
Most of that revenue would come from Starlink and Starshield. These are SpaceX’s space-based communication systems.
Shay Boloor from Futurum Equities Research expects huge retail demand. He called it potentially the craziest IPO in stock market history.
But history suggests caution with high-valuation IPOs. University of Florida professor Jay Ritter studied IPOs from 1980 to 2023.
He found 45 companies went public with valuations over 40 times sales. Only seven traded higher three years later.
These stocks lost about half their value on average. They trailed the broader market by roughly 63%.
The IPO could happen as early as June. SpaceX has not commented on the reports.
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