SpaceX targets US$1.75 trillion valuation including greenshoe option in record IPO, Reuters sources say

Elon Musk attends the Saudi Investment Forum at the Kennedy Center, Wednesday, Nov. 19, 2025, in Washington. (AP Photo/Evan Vucci)

SpaceX, Elon Musk’s rocket and satellite company, plans to target a valuation of US$1.75 trillion, including a greenshoe option, in its blockbuster initial public offering, two people familiar with the matter told Reuters on Tuesday.

After some early meetings with investors, or a “testing the waters” process, the company has indicated it plans to raise at least $75 billion, the sources said, requesting anonymity to discuss confidential information. The greenshoe option gives underwriters the right to sell additional shares if investor demand exceeds expectations, typically up to 15 per cent.

The IPO is expected to be structured as an all-primary offering, meaning all proceeds would go to the company rather than existing shareholders, the sources said.

The move marks the first time SpaceX has communicated specific fundraising and valuation targets to banks after early investor meetings, as it prepares for what is expected to be the largest ever IPO. Reuters previously reported the company was considering a preliminary valuation of around $1.75 trillion.

The roadshow for the IPO is set to begin on Thursday, Reuters previously reported. The plans, including the size of the raise, are subject to change as investor meetings get under way, the sources cautioned.

The IPO will give public investors a rare opportunity to buy into Musk’s vision for space, satellite communications and artificial intelligence through SpaceX, which has emerged as the crown jewel of the world’s richest person’s business empire.

SpaceX did not respond to a request for comment.

Mega IPO wave

The listing is expected to kick off a wave of mega IPOs, with SpaceX, OpenAI and Anthropic together poised to add almost $4 trillion in market capitalization to public markets and intensify competition for investor dollars.

Unlike most IPO candidates, SpaceX lacks a clear public market benchmark. Analysts say investors must piece together comparisons from aerospace, telecom and defense companies while factoring in Starlink’s growth potential and Musk’s long-term ambitions, making valuation a complex task.

For many investors, the bet is as much on Musk as on SpaceX.

His track record at electric-vehicle company Tesla and his ability to galvanize retail traders could likewise spur strong demand for shares, as his reputation has done for past ventures.

Still, two of SpaceX’s three businesses are burning cash, with only its connectivity segment, home to the Starlink satellite constellation, generating profits and widely viewed as the company’s cash cow.

Beyond rockets and satellites, SpaceX is pitching investors a future that includes ambitious projects such as data centers in orbit, positioning itself to benefit from a surge in AI-related infrastructure spending.

SpaceX merged with Musk’s AI startup xAI earlier this year in a deal that valued the rocket and satellite company at $1 trillion and the developer of the Grok chatbot at $250 billion.

Its revenue rose to $4.69 billion in the three months ended March 31 from $4.07 billion a year ago. Losses widened to $1.27 per share versus 18 cents per share over the same period.

In 2025, SpaceX’s revenue jumped to $18.67 billion from $14.02 billion a year earlier, but the company swung to a net loss of $4.94 billion from a profit of $791 million.

Since a large part of SpaceX’s pitch to investors hinges on Musk, some corporate governance concerns could give investors pause, experts have said. Measures, including a dual-class share structure laid out in the IPO prospectus, concentrate voting power in the hands of Musk and a small group of insiders.

SpaceX is aiming to trade on the Nasdaq under the ticker symbol “SPCX.” The debut is expected as early as June 12, Reuters has reported, citing sources, after the company accelerated the timeline of its IPO.

Goldman Sachs, Morgan Stanley, BofA Securities, Citigroup and J.P. Morgan are the joint book-running managers for the offering, leading a syndicate of global investment banks underwriting the deal.

(Reporting by Echo Wang in New York; Additiong reporting by Lance Tupper in New York, and Manya Saini in Bengaluru; Editing by Saumyadeb Chakrabarty, Rod Nickel)