Elon Musk plans the world’s largest IPO: What investors need to know about the once-in-a-generation SpaceX listing

Elon Musk’s SpaceX could be preparing for what may prove to be the largest public offering the world has ever seen. According to a report from the Financial Times, the rocket and satellite company is considering an initial public offering in mid-June that could raise as much as $50 billion at a valuation of about $1.5 trillion. If the plan goes ahead, it would easily surpass Saudi Aramco’s 2019 IPO, which raised $29 billion and valued the company at about $1.7 trillion, making SpaceX’s listing the largest ever in terms of deal size.For investors, the numbers alone make SpaceX difficult to ignore. At a valuation of $1.5 trillion, the company would be among the most valuable companies in the world from day one. But beyond the headline figures, what stands out is how SpaceX was built, how it makes money today, and why it has remained private for over two decades.

How SpaceX was built

SpaceX was founded by Musk in 2002 with the clear goal of lowering the cost of space travel and ultimately allowing humans to live on other planets. At the time, the global space industry was dominated by government agencies and a handful of large aerospace companies, with launches being extremely expensive and rare. SpaceX entered the industry with a startup mentality, taking technical risks that established players avoided.The company’s breakthrough came with the development of reusable rockets. The Falcon 9 launch vehicle was designed so that the first stage could return to Earth and be reused. This greatly reduced launch costs and allowed SpaceX to offer lower prices than competitors. Over time, this has helped it win contracts from both commercial clients and government agencies.

An important turning point was the collaboration between SpaceX and NASA. The company began delivering cargo to the International Space Station and later became the first private company to send astronauts there under NASA’s Commercial Crew program.

According to several reports, these missions have brought SpaceX stable revenues and global credibility. Today it is also working with NASA on the Artemis program, which aims to return humans to the moon, and has won major defense and government contracts in the US.

The Starlink Boost

While launches were the original business, SpaceX’s biggest change in recent years has been the emergence of Starlink, its satellite internet service. Starlink uses thousands of satellites in low Earth orbit to provide broadband internet around the world, including in remote areas. What started as a way to finance SpaceX’s long-term space ambitions has become its main source of revenue. According to Bloomberg, SpaceX generated about $14 billion in revenue in 2024, a sharp increase from previous years. It is believed that Starlink alone contributed more than half of this amount. By the end of 2025, Starlink had nearly nine million subscribers worldwide, and the number continues to grow.

Unlike launch contracts, which can be uneven from quarter to quarter, Starlink brings recurring subscription revenue.

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Why SpaceX stayed private for so long

Despite its size and importance, SpaceX has remained a private company. Musk has often said that public markets can discourage long-term thinking because publicly traded companies are under pressure to deliver short-term results every quarter.

Projects like Starship, the massive rocket being developed for missions into space, require years of testing, high expenditures and a tolerance for failure, which are easier to manage away from the public eye.

Another reason is access to private capital. SpaceX has raised billions of dollars through private financing rounds and employee stock sales, steadily increasing its valuation. At the end of 2025, the company was valued at nearly $800 billion. This allowed SpaceX to finance expansion without the disclosure requirements and scrutiny that come with a stock exchange listing.

What makes SpaceX’s IPO so special

What makes the proposed IPO so special is its enormous size: never before has it raised $50 billion in one go. By comparison, Saudi Aramco’s 2019 IPO remains the largest completed listing in history, both in terms of money raised and valuation at debut. SpaceX’s proposed offering would surpass Aramco’s fundraising and come close to its valuation, despite operating in a completely different sector.

The risks to SpaceX operations

There are also risks associated with SpaceX’s activities. Rocket launches and satellite deployments are capital intensive and technically complex. Delays, failures or regulatory hurdles can impact costs and timelines. Projects like Starship, while potentially transformative, are still in development and require heavy investment before they can generate meaningful returns.

If the listing goes ahead as reported, SpaceX will not only rewrite the IPO record books, but also test how far the public markets are willing to go in valuing future technologies.

(Disclaimer: Recommendations, suggestions, views and opinions expressed by the experts are their own. These do not represent the views of The Economic Times.)