Reports are swirling that Elon Musk is planning an IPO for SpaceX this summer. Now that Musk has merged the rocket enterprise with xAI, another pillar of his empire, he expects the combination to raise $50 billion in capital, and garner a market cap of $1.5 trillion. At those numbers, SpaceX would notch the single biggest IPO capital raise of all time, and also rank as second highest in total valuation to Saudi Aramco, and far ahead of second place Alibaba’s introduction in 2018 at $167 million.
Until SpaceX publishes its prospectus for the offering, we won’t have a detailed look at its financials. We do, however, have important snippets of information. Musk has stated that SpaceX generated some $15 billion in revenue last year, and it’s been widely reported that it booked roughly $8 billion in Ebitda. The scenario circulating widely in the media, and not refuted by Musk, shows a loss of $2.4 billion for the first nine months of 2025.
These numbers don’t include interest and depreciation, the latter comprising SpaceX’s outlays for plants and equipment. Knitting together this limited view of the now-united businesses, it appears likely that the current SpaceX is showing zero or even negative GAAP earnings.
Hence, SpaceX can’t be valued on its current profits, but only on its prospects of gigantic growth in the most pioneering of industries whose future trajectory is also unknowable. However, we do know two things about SpaceX that should give investors big worries about a $1.5 trillion valuation.
The first: These are the ultimate in capital-intensive enterprises. Musk announced SpaceX’s intention to build 10,000 fully reusable rockets, each over 400 feet tall. At a cost that Payload Research estimates at $35 million each, that’s $350 billion in cash for the likes of krypton-gas burners, solar arrays, and stainless steel alloy. xAI is a major builder of high-cost data centers than run such products as its Grok chatbot. In 2025, it reportedly burned through $8 billion in cash, primarily to fund such behemoths as its $20 billion “MACROHARDRR” facility in Mississippi. The upshot: These aren’t low investment software plays that if successful, could easily post 35% net GAAP margins. In general, it’s extremely rare for “manufacturers,” whether it’s in aircraft or data generators, to achieve such lofty levels of profitability.
The second “known” are the earnings SpaceX must produce to reward shareholders going forward. Keep in mind, it’s beginning at a standing start, given its apparent lack of current earnings. Where does SpaceX need to be in five years? This is the riskiest of bets. Looking at what investors demand from similarly risky enterprises, let’s estimate shareholders will want total returns of at least 10% a year to hold the stock. Hence, by 2031, its market cap must grow to at least $2.4 trillion to ring the bell. That’s bigger than all but four of the world’s biggest companies today—Nvidia, Microsoft, Alphabet, and Apple—and far larger than Meta Platforms and Saudi Aramco, and $1.2 trillion bigger than Musk’s flagship, Tesla.
