SpaceX will get off the ground – but a descent from a silly valuation must follow | Nils Pratley
Summary
SpaceX plans to offer shares on the US stock market with a very high valuation of $1.77 trillion, despite reporting a loss of $4.9 billion in 2025 on $18.7 billion in revenue. Much of this value is linked to Elon Musk’s artificial intelligence project xAI, with SpaceX’s core space and satellite services contributing less to this high valuation.Key Facts
- SpaceX aims to become a multi-planet life-supporting company, according to its IPO document.
- The company lost $4.9 billion in 2025 while earning $18.7 billion in revenue.
- SpaceX will be listed on Nasdaq with a valuation almost 100 times its revenues.
- Starlink, its satellite broadband service, makes up 60% of SpaceX’s revenues and leads the global market in remote internet connectivity.
- Reusable rocket technology reduces launch costs from billions to tens of millions of dollars.
- The AI division xAI was added to SpaceX in 2024, valued at $250 billion at that time, and will get most of the IPO funds.
- The social media platform X, connected to xAI, holds little financial importance within SpaceX.
- Some analysts estimate a more realistic SpaceX valuation around $780 billion, significantly lower than the IPO price.
- Major Wall Street banks are managing the IPO and will support share sales.
- Passive index funds must buy SpaceX shares because of its inclusion in market indices, regardless of price.
Read the Full Article
This is a fact-based summary from The Actual News. Click below to read the complete story directly from the original source.