Key Points
The rumors are true: SpaceX is officially looking to go public. Recent filings suggest that the company is targeting an IPO sometime in June.
We still don’t know much about the planned public share sale of the space stock, as most of the details remain hidden in a “confidential filing” given to regulators earlier this year. But most experts seem to agree that the looming SpaceX IPO will value the company well over $1 trillion, with some reports claiming $1.75 trillion may be within reach. These valuations would allow SpaceX to raise somewhere between $50 billion and $75 billion in fresh capital.
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A $1.75 trillion valuation may seem steep at first glance, but founder Elon Musk clearly has a knack for creating $1 trillion businesses that can transform industries in a way few ever thought possible. SpaceX, for instance, has been the clear leader for years in lowering the cost of getting a payload to space. And its Starlink division is already generating a profit with rapid growth rates.
In 2023, this division posted a net loss. But in 2024, the division booked a profit of around $72 million. By 2025, however. Starlink was generating at least $8 billion in profits on roughly $15 billion in revenue! Though, it should be noted, that SpaceX’s recent acquisitions of both X (formerly Twtitter) and xAI (Musk’s AI start-up) contributed to a net loss of nearly $5 billion for the consolidated company.
This track record is clearly being valued at a premium by the market. As a recent Reuters report concludes, “Musk’s track record of building successful, industry-disrupting companies gives analysts and portfolio managers confidence that the unproven bets — Starship, xAI, and an ambitious push into data-center satellites — will eventually pay off too.”
Investors should strongly consider investing in the SpaceX IPO. But before shares go public, there’s one obvious stock to be buying in advance.
Tesla is the obvious winner if SpaceX raises $75 billion in fresh capital
It’s no secret that Musk enjoys cross-pollinating his business interests. Earlier this year, Tesla (NASDAQ: TSLA) invested $2 billion into Musk’s artificial intelligence (AI) start-up, xAI. Later, SpaceX merged with xAI, reportedly pushing the combined company’s valuation up to $1.25 trillion. Tesla now ships its new vehicles with Grok, xAI’s AI assistant, preinstalled.
For its part, xAI has seemingly purchased and deployed a number of Tesla “Megapacks” — its utility-scale battery solutions. There are also reports that Musk’s other companies were responsible for buying around 20% of Tesla’s Cybertrucks since that model began sales.
This list goes on and on. But the important takeaway is this: When one of Musk’s companies succeeds, it often leverages that success to help Musk’s other businesses.
Image source: Getty Images.
Knowing this, it’s not hard to see how SpaceX having $50 billion to $75 billion in fresh capital is a boon for Tesla’s business. Tesla is currently attempting to transform its business from one dominated by auto sales to one where software, AI, and robotics play a much bigger role. SpaceX may become a trusted supplier to Tesla for AI and related software components at a lower price than competing solutions. After all, there are already reports that SpaceX has helped Tesla in the past with emergency cash.
I wouldn’t be surprised to see a multibillion-dollar order by SpaceX for Tesla’s robotics. And because both companies have the same CEO, these orders can be executing earlier than most outside customers could stomach, with more room for patience if Tesla struggles to deliver on time. SpaceX also could purchase Tesla’s megapacks to power its Moonbase infrastructure. Tesla’s semitrucks, meanwhile, could be used at scale for material deliveries.
In short, a successful SpaceX IPO should directly benefit Tesla’s bottom line. Musk’s long history of cross-pollinating his business interests strongly backs this prediction.
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Ryan Vanzo has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Tesla. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
