SpaceX could seek IPO valuation of over $1.75 trillion, Bloomberg says - Reuters

<a href="https://news.google.com/rss/articles/CBMitwFBVV95cUxQTmxJY1FEcVNZZk9taUFXSDRNQUlMS2V5eENJbkNHNDhpVElCVVV0TC0yNFVGRTRzMl9TbUJJSVZLYThSYU04dUhzbk13ZE9PZmNRcjJJaTRUeDJPNlVNbFVSSnQxN0l1NTFDOFAwTDlmakF6Mkp1MlhLN2Fxa01Ib3gxQ2hKd21rWllCdENwWUpWOEJUWG9tcEswZ0l6a1FLQWxEYVIwS19ldGQ2R0JQNW1mLUxlVlU?oc=5" target="_blank">SpaceX could seek IPO valuation of over $1.75 trillion, Bloomberg says</a>&nbsp;&nbsp;<font color="#6f6f6f">Reuters</font>

Elon Musk's SpaceX is aiming to file confidentially for an initial public offering that could value the rocket and satellite company at more than $1.75 trillion, Bloomberg News reported on Friday, citing people familiar with the matter.

SpaceX may file a confidential IPO application with the U.S. SEC in March 2026, according to Bloomberg. The filing could lead to an exchange listing announcement as early as June. The company’s valuation is estimated to exceed $1.75 trillion, with fundraising potentially reaching $500 billion. Details remain subject to change as SEC developments continue.

Recent reports indicate that SpaceX aims for a staggering valuation that could exceed $1.75 trillion during this IPO. This figure marks a substantial increase from earlier assessments which suggested a valuation below $1 trillion. Following the company’s acquisition of Elon Musk's AI venture xAI in February, expectations for valuation shifted, climbing from $1.25 trillion to $1.5 trillion, and now edging close to $1.75 trillion.

The company could seek a valuation exceeding $1.75 trillion, which would make it one of the largest IPOs ever. This target demands a massive leap in the company's underlying profit flow. The core financial benchmark is stark. The proposed valuation implies a market cap multiple of roughly 220 times SpaceX's recent $8 billion in EBITDA. That multiple is not a reflection of current earnings but a bet on future, hyper-sustainable growth.

Instead, it’s letting insiders cash out, selling stock as part of a tender offer to the company and to investors who want a piece. So, it’s buying back shares from insiders (i.e., employees) who have earned them as compensation. Here’s how SpaceX’s valuation has soared in the recent past on these re-valuations, as detailed in a recent article of SpaceX’s IPO: July 2024: A $210 billion valuation [as part of a tender offer]