SpaceX Raises $75bn Ahead Of Historic Stock Market Debut

Elon Musk’s SpaceX has raised $75 billion (£56 billion) from investors ahead of its stock market debut on Friday, setting the stage for what is expected to become the largest initial public offering (IPO) in history.

According to a filing submitted to the US Securities and Exchange Commission (SEC), the space exploration and artificial intelligence company sold shares at $135 each, matching the estimated share price it announced last week.

The fundraising values SpaceX at nearly $1.8 trillion, making it one of the most valuable companies in the world before its shares have even begun trading publicly.

The valuation could also make SpaceX founder and Chief Executive Officer, Elon Musk, the world’s first trillionaire, further cementing his position as the richest person globally.

Investors To Determine Final Market Value

While SpaceX has set a share price of $135, the actual market value of the company will ultimately depend on investor demand once trading begins.

If shares trade at or above the offer price when markets open on Friday, SpaceX will immediately rank among the world’s most valuable publicly listed companies.

Interest in the stock is already expected to be strong among both institutional investors and retail traders.

Several analysts have projected even higher valuations. Global brokerage firm Oppenheimer, for example, said it expects SpaceX shares to climb to $190.

The final trading price will be determined through market activity once the shares begin trading on the technology-focused Nasdaq exchange.

Former Employee Reflects On SpaceX Journey

Speaking to the BBC, Tom Mueller, SpaceX’s first employee and current founder of Impulse Space, described the company’s rise as remarkable.

“It’s unbelievable,” Mueller said.

Reflecting on the company’s early years, he recalled the challenges that nearly derailed its ambitions.

“We got our first rocket engine running, and then it exploded. Then another rocket crashed before we finally made a successful launch to orbit in 2008.”

“It’s just been an incredible ride,” he added.

Mueller left SpaceX in 2020 but still retains a significant financial stake in the company.

IPO Seen As Test Case For Other AI Giants

Industry analysts view SpaceX’s public debut as a key test for other highly valued private technology firms preparing to enter the stock market.

Companies such as Anthropic and OpenAI have both indicated plans to pursue public listings and are closely watching investor response to SpaceX.

Musk Retains Firm Control

Despite becoming a publicly traded company, SpaceX will remain firmly under Musk’s control.

Through his ownership of both Class A and Class B shares, Musk will retain approximately 40% of the company’s equity while controlling more than 84% of voting rights.

The arrangement mirrors the structure used by Mark Zuckerberg at Meta, although Zuckerberg’s voting control stands at roughly 60%, significantly lower than Musk’s influence at SpaceX.

The concentration of voting power means Musk can continue making major strategic decisions even if he reduces his ownership stake in the future.

According to an analysis by Harvard Law School, Musk would likely “retain his lock on control” because of the structure of his voting shares.

Governance Concerns Remain

The company’s ownership structure has raised concerns among some governance experts.

Because Musk maintains such significant voting control, SpaceX is not required to appoint independent directors without personal or financial ties to the company.

Analysts have argued that this could create risks for investors, particularly regarding acquisitions involving Musk-owned businesses and decisions around executive compensation.

SpaceX has already expanded its empire through acquisitions linked to Musk. The company previously acquired xAI, which in turn purchased the social media platform X, formerly known as Twitter.

As trading begins, investors will be watching closely to see whether SpaceX can justify its record-breaking valuation and whether its historic IPO sets the tone for the next generation of artificial intelligence and technology listings.