SpaceX has priced its IPO at $135 per share, choosing a single price instead of the usual range. The company aims to raise about $75 billion by selling 555 million shares, putting its total value near $1.75 trillion. Here’s what this means for investors and why the final price is lower than some expected.
The $1.75 trillion valuation is about 70 times SpaceX’s estimated 2026 sales and 265 times its expected 2025 EBITDA. For comparison, Palantir trades at around 225 times its 2025 EBITDA. Although this valuation is high by normal standards, it is still below the $2 trillion figure mentioned in earlier reports, which has made some investors cautious. Stocks in the space sector reacted strongly: AST SpaceMobile dropped nearly 9% on Wednesday, and Rocket Lab fell 7% as investors adjusted their expectations for companies with even higher revenue multiples than SpaceX.
Elon Musk owns 12% of SpaceX’s Class A shares and 94% of its Class B shares. Each Class B share has 10 votes, which ensures Musk keeps control of the company after it goes public. In total, SpaceX has about 12.9 billion Class A and B shares outstanding.
The key question about this IPO is not whether SpaceX can raise the money, but whether its AI business, which supports much of the $1.75 trillion valuation, can eventually justify that price. Starlink, SpaceX’s satellite internet service, is already profitable and shows that the company’s space infrastructure model works. However, SpaceX’s AI operations are not yet making money. This difference is important, and investors in OpenAI and Anthropic, both of which are planning IPOs later this year, will be watching SpaceX’s early trading closely to see how the market values AI-focused companies.
Index rules will make it harder to understand the true value of SpaceX shares at first. The stock is expected to join the Nasdaq 100 soon after the IPO, which could lead to $30 billion to $40 billion in automatic buying by index funds. Since only a small portion of shares will be available, this demand will take up much of the supply, making it tough to see the real market price in the early days of trading.
