SpaceX is advancing plans for a 2026 initial public offering (IPO) that could raise significantly more than $30 billion and value Elon Musk’s space company above $1 trillion, in what would become the largest IPO in history, according to media reports Tuesday.

Credit：SpaceX

Bloomberg reported the company is targeting a valuation around $1.5 trillion for the entire entity and pursuing a listing as soon as mid-to-late 2026. Reuters cited sources saying SpaceX is looking to raise more than $25 billion with a valuation exceeding $1 trillion, and has started discussions with banks about a potential June or July listing.

The proposed offering would surpass Saudi Aramco's record $29 billion IPO in 2019. If SpaceX sold 5% of the company at $1.5 trillion valuation, it would need to sell $40 billion worth of stock.

The company plans to use IPO proceeds to develop space-based data centers, including purchasing required chips, Bloomberg reported, citing people familiar with the matter. SpaceX reportedly expects revenue of around $15 billion in 2025, increasing to between $22 billion and $24 billion in 2026, with the majority coming from its Starlink satellite internet service.

Recent Valuation Jump Fuels IPO Plans

Last week, multiple media outlets reported SpaceX was conducting a secondary share sale valuing the company at $800 billion, positioning it to rival OpenAI as the world’s most valuable private company. Bloomberg said Tuesday the current secondary offering has set a per−share price around $420, putting valuation above the previously reported $800 billion figure. The company is allowing employees to sell around $2 billion worth of stock and will participate in buying back some shares.

Musk said in a Dec. 6 post on X that SpaceX has been cash-flow positive for many years and conducts periodic stock buybacks twice annually to provide liquidity for employees and investors. "Valuation increments are a function of progress with Starship and Starlink and securing global direct-to-cell spectrum that greatly increases our addressable market," he said.

The valuation strategy is designed to establish the company's fair market value as a precursor to the IPO, one person told Bloomberg. The July 2024 valuation stood at $400 billion.

Strong Starlink Growth Drives Timeline

SpaceX's accelerated path to public markets is fueled by the strength of its fast-growing Starlink service, including the promise of a direct-to-mobile business, as well as development of its Starship moon and Mars rocket, Bloomberg reported. Starlink operates more than 9,000 satellites serving eight million active customers, far ahead of competitors including Amazon.com's Amazon Leo.

The company's board of directors advanced plans for the listing and fundraising—including hiring for key roles and capital allocation—in recent days as SpaceX finalized its latest insider share sale, according to Bloomberg sources.

SpaceX's IPO plans sent shares in other space companies higher Tuesday. EchoStar Corp., which agreed to sell spectrum licenses to SpaceX, rose as much as 12% in New York, hitting a fresh intraday record before settling nearly 6% higher. Space transportation company Rocket Lab Corp. extended gains to as much as 4.3%.

Shift from Prior Starlink Spinoff Plans

SpaceX executives have repeatedly floated spinning off the Starlink business into a separate publicly traded company—a concept President Gwynne Shotwell first suggested in 2020. However, Musk cast doubt on the timing over the years, and Chief Financial Officer Bret Johnsen said in 2024 that a Starlink IPO would more likely occur "in the years to come."

The company has since shifted to considering a public listing of the entire entity, including Starlink, as its rocket business improves. The timing of the IPO could change based on market conditions and other factors, and one person told Bloomberg it could slip into 2027.

The biggest long-term investors in SpaceX include venture firms like Peter Thiel's Founders Fund, 137 Ventures led by Justin Fishner-Wolfson and Valor Equity Partners. Fidelity also is a significant investor, as is Alphabet Inc.'s Google. Saudi Aramco remains the only completed IPO to have achieved a valuation of $1 trillion or more. The world’s biggest oil producer debuted in December 2019 with an estimated market capitalization of $1.7 trillion.