SpaceX targets a valuation of $2 trillion, poised to reshape the global technology company valuation landscape

According to Bloomberg on April 3, SpaceX has raised its initial public offering (IPO) target valuation to over $2 trillion.

Sources familiar with the matter say the company and its advisors are sharing this valuation goal with potential investors in preparation for meetings over the coming weeks. Subsequent "test waters" presentations may reveal more information supporting this valuation.

In February of this year, after SpaceX acquired Elon Musk's xAI, the merged company's valuation was $1.25 trillion. This means that within just a few months, SpaceX's valuation has increased by nearly two-thirds.

Based on a $2 trillion valuation, SpaceX would surpass all companies in the S&P 500 except Nvidia, Apple, Alphabet, Microsoft, and Amazon, and would also outpace Meta and Tesla, both of which are among the seven giants of the U.S. stock market.

SpaceX has secretly filed for an IPO, with plans to go public as early as June. The IPO aims to raise up to $75 billion, which would far exceed Saudi Aramco's $29 billion in 2019, making it the largest IPO in history.

Currently, SpaceX is in talks with the Public Investment Fund of Saudi Arabia, which plans to subscribe to $5 billion in cornerstone shares to prevent its existing nearly 1% stake from being diluted.

It is reported that SpaceX's high valuation stems from its leading position in launch services and low Earth orbit communications/broadband. Its launch business and Starlink are the main sources of revenue, expected to reach approximately $20 billion by 2026.

Additionally, the merger with xAI and the proposed IPO will support investments in larger launch vehicles and space data centers. The "space computing stack" they are building also contributes to the valuation boost.

In summary, SpaceX's pursuit of a $2 trillion valuation not only highlights its outstanding achievements and enormous potential in the aerospace sector but also signals a possible reshaping of the global tech company valuation landscape.

If SpaceX successfully achieves this valuation and goes public smoothly, it will inject new vitality into the global tech industry and inspire more companies to explore frontier technologies.

However, to reach this goal, the SpaceX team must consider how to operate steadily and manage risks. Regardless of the outcome, its development journey will serve as an important case study in the global commercial space and technology fields.

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