Elon Musk’s SpaceX is reportedly breaking with Wall Street convention by establishing a fixed IPO price of $135 per share before its investor roadshow, aiming to raise a record $75 billion on a valuation of $1.75 trillion. Financial services firm Morningstar believes Musk’s company is only worth about half that amount.
Reuters reports that Elon Musk’s SpaceX plans to sell 555.6 million shares for $135 each targeting a valuation of $1.75 trillion, making it one of the most ambitious public offerings in market history. The company’s roadshow is scheduled to begin Thursday and is expected to generate significant investor interest.
SpaceX’s approach represents a dramatic departure from standard IPO procedures. Typically, companies preparing to go public establish a price range to frame valuation expectations and allow for adjustments based on investor demand during the roadshow process. Strong interest can push the final price to the top of the range or beyond before shares begin trading. By setting a fixed price ahead of investor presentations, SpaceX is taking an unconventional path.
The company previously held “testing the waters” meetings with investors, and sources cautioned that plans, including the size of the raise, remain subject to change as investor meetings progress.
The listing leads a wave of high-profile private companies preparing to enter public markets after years of subdued IPO activity. SpaceX is expected to be followed by AI companies OpenAI and Anthropic, with the three firms together poised to add nearly $4 trillion in market capitalization to public markets.
The IPO is expected to be structured as an all-primary offering, meaning all proceeds will go directly to the company rather than allowing existing shareholders to sell their stakes. Musk will be required to hold his SpaceX shares for 366 days following the IPO, signaling his commitment to the company. Proceeds will be used for purposes including expanding AI computing resources and the company’s satellite network.
SpaceX merged with Musk’s AI startup xAI earlier this year in a transaction that valued the rocket company at $1 trillion and the developer of the Grok AI chatbot at $250 billion. The combined entity lacks direct peers, making valuation challenging and subject to interpretation.
At a $1.75 trillion valuation with the company booking revenue of $18.67 billion in 2025, SpaceX would trade at a trailing price-to-revenue multiple of 93.7 times. Analysts at Morningstar have actually placed their valuation on the company at $780 billion, roughly half of the company’s targeted $1.75 trillion target. Morningstar equity analyst Nicolas Owens commented on the company’s AI efforts, saying: “We don’t see Grok as one of the leading AI labs today,” adding: “We think the company has been significantly overvalued and investors will have opportunities to buy the stock at more attractive levels after the IPO.”
For many investors, the investment represents as much a bet on Musk himself as on SpaceX. His track record at Tesla and his ability to mobilize retail traders could generate strong demand for shares, as his reputation has done for previous ventures.
With IPOs related to AI expected to raise up to $4 trillion in the coming months, artificial intelligence is clearly having a massive on the American economy. Breitbart News social media director and author Wynton Hall explains in his instant bestseller, Code Red: The Left, the Right, China, and the Race to Control AI, that conservatives must develop a plan to deal work with AI that avoids the landmines outlined in this lawsuit, but still captures the benefits of this powerful technology.
Read more at Reuters here.
Lucas Nolan is a reporter for Breitbart News covering issues of AI, free speech, and online censorship.