SpaceX is seeking to raise $75 billion by selling 555.6 million shares at $135 each, according to a filing with the Securities and Exchange Commission. This deal values SpaceX at $1.77 trillion, positioning it as the seventh most-valuable U.S. company, surpassing Tesla in market capitalization [1].
Venture capitalist and former Tesla board member Steve Westly told CNBC that SpaceX's valuation is contingent on the success of at least two out of its three core businesses, which he described as 'completely disparate.' The three units include its space business, the Starlink satellite internet service, and xAI, which was merged with SpaceX in February. Of these, Starlink is currently the only profitable unit and accounts for the majority of SpaceX's revenue [1].
Westly emphasized the difficulty in pricing SpaceX's imminent IPO due to the diversity of its underlying businesses. He stated, 'SpaceX is three moonshots in one company, but I think they're going to need to make at least two of these moonshots successful to keep that $2 trillion valuation' [1]. The company has already achieved the distinction of being the largest IPO on record [1].
There is also speculation about the potential for Tesla to be merged into SpaceX, as CNBC reported in May that the two companies share numerous resources and that Elon Musk has discussed the possibility with colleagues. Westly commented that such a merger is 'absolutely likely,' though he acknowledged it would present significant governance challenges and likely provoke complaints [1].
CONCLUSION
SpaceX's record-setting $1.77 trillion valuation is underpinned by the expectation that at least two of its three major business units will succeed. The company's future trajectory, including possible consolidation with Tesla, remains a key topic among investors and analysts, with significant governance and strategic implications.