Submit a Press Release or News Tip Musk’s track record turning Tesla and SpaceX into global giants has earned him a reputation as someone who sees where technology is heading and builds world-class businesses around those bets. SpaceX’s sky-high valuation of nearly $1.8 trillion rests entirely on the belief that Musk’s legendary run will continue and that his most ambitious goals will eventually be realized. Nothing at the core of the business as it stands today aligns with that valuation, however, with the company growing fast but hemorrhaging money. Revenue hit $18.7 billion in 2025, up 33 percent from the prior year, but costs grew even faster, producing a net loss of $4.9 billion, followed by another $4.3 billion loss in the first quarter of 2026. Despite those figures, SpaceX’s IPO filing claims the company could ultimately generate over $28.5 trillion in revenue, driven by Starlink satellite internet and AI data centers launched into orbit. The AI ambitions face serious headwinds, as xAI, SpaceX’s artificial intelligence unit, has struggled to keep pace with rivals, with standalone AI revenue of around $500 million, a fraction of what OpenAI and Anthropic generate. Musk will retain an iron grip on the company after its public listing, holding Class B shares that carry 10 votes each, compared to the single vote attached to the Class A shares offered to ordinary investors. That dual-class structure gives Musk approximately 82 percent of total voting power, a playbook used by tech giants including Google, Meta, and Snap to keep their founders firmly in control after going public. Having grown frustrated by years of shareholder litigation against publicly traded Tesla (NASDAQ: TSLA), Musk has ensured SpaceX is shielded inside a robust legal structure designed to limit investor recourse. SpaceX requires any shareholder lawsuits to be filed in a specialized Texas business court, and if a judge refuses jurisdiction, disputes are sent to private arbitration with no jury and no class actions permitted. The IPO filing acknowledges there is “risk” a court could reject these provisions if challenged, but states that until one does, those rules remain in effect. In an unusual move, SpaceX will set aside 30 percent of IPO shares for everyday investors rather than directing most of the allocation to large Wall Street institutions, as is standard practice. Allocating a larger portion to individual investors changes the ownership dynamic on day one, potentially bypassing institutional funds that may be skeptical of the company’s current financials. A heavy retail presence also introduces the possibility of sharp early price swings if large numbers of enthusiastic buyers rush into the stock simultaneously. The pressure on the stock price could be amplified further by index fund mechanics, as Nasdaq changed its rules in May to allow SpaceX to join its index within 15 trading days, down from the previous three-month window. Passive funds tracking the index, including those held by American retirement plans, will be required to purchase SpaceX shares to match the index, creating a substantial and largely unavoidable wave of buying demand. Adding to that pressure, only 4 percent of the $1.77 trillion company will be made available for purchase in the offering, an exceptionally thin float by any standard. With index funds, retail investors, and Musk loyalists all competing to buy shares from a very limited pool of available stock, analysts expect the listing could produce a sharp and rapid move upward in price. Share: