Elon Musk is on his way to become the world’d first ever trillionaire as SpaceX files IPO

SpaceX has officially revealed plans to go public in the United States, setting the stage for what is expected to be the largest initial public offering in the history of Wall Street, the BBC reports. This move allows regular investors to trade shares in the firm, which is currently valued at $1.25tn, under the ticker symbol SPCX.

The listing could start as early as next month, marking a massive milestone for the company and its owner, Elon Musk. Because Musk maintains majority ownership of the firm, analysts believe his stake could soon be worth more than $600bn. When you combine this with his existing wealth, which already makes him the richest person on the planet, the IPO could push his total net worth over the $1tn mark.

Last year, Musk became the first person to reach a net worth exceeding $500bn, and this new move seems designed to solidify his financial standing further. SpaceX, officially known as Space Exploration Technologies, is a sprawling enterprise that goes well beyond just building rockets. The company also operates the satellite internet service Starlink and has recently moved to acquire xAI, which is Musk’s artificial intelligence firm.

Musk has stated his intention to dissolve xAI as a separate entity and instead pursue his various AI ambitions directly under the SpaceX umbrella

The filing provides an unprecedented look at the financial health of the business. Last year, the company brought in $18.6bn in revenue, though it also reported a net loss of $4.9bn. In the first three months of this year, the company saw $4.7bn in sales but experienced a net loss of $4.3bn. Despite these losses, the balance sheet remains massive, showing $102bn in assets like rockets and equipment, balanced against $60.5bn in debt.

Ruth Foxe-Blader, a managing partner at the venture capital firm Citrine Venture Partners, noted that these losses are not unusual for a project of this scale. She stated that “it’s not shocking for a project like this to be loss making, even at the point of IPO”. She further added that the move is “extremely exciting” and described the firm as “just an absolutely sprawling, enormous project with so many different selling points, and so many points that really point to the future.”

The road to this IPO has not been entirely smooth, as the filing highlights more than half a billion dollars in expected legal costs. These costs stem from a variety of ongoing issues, including patent infringement claims, data breach concerns, music copyright infringement, and claims regarding noncompliance with European Union content moderation rules. Some of the most significant legal pressure comes from multiple lawsuits alleging that Grok, the chatbot developed by xAI, is being utilized to generate sexualized deepfakes of real women and girls. Furthermore, the company now owns X, the social media platform Musk purchased in 2022.

The financial details also shed light on the competitive landscape of the artificial intelligence sector. SpaceX has struck a deal with Anthropic, the developer of the Claude AI, which will see Anthropic pay $15bn annually to access data centers in the American South for xAI. While the AI side of the business has dealt with various controversies, the rocket and Starlink divisions remain industry leaders with a significant advantage over their competitors.

This IPO comes shortly after Musk faced a high-profile legal defeat against OpenAI and its leader, Sam Altman. Musk had accused Altman of breaching a non-profit contract by moving the ChatGPT maker toward a for-profit model, but a jury unanimously dismissed the case. They determined that Musk had waited too long to file his lawsuit, meaning the timeframe for his claims had expired.

During that trial, Musk mentioned that his own AI startup was small compared to OpenAI, which is also rumored to be looking at a public offering in the near future. As the company prepares for its upcoming stock market debut, it continues to face other challenges. Its massive Starship megarocket is scheduled for launch this week, even as the company deals with scrutiny regarding worker safety at its facilities.

Additionally, Musk remains a polarizing figure in the public eye due to his right-wing political views and his close alignment with US President Donald Trump. Musk even traveled to China with the President just last week, keeping him firmly in the headlines as he pushes forward with his ambitious corporate goals.