Elon Musk announced a monumental move for SpaceX with plans to take the space company public. SpaceX is currently navigating financial losses, including a $2.6 billion operational loss last year from $18.7 billion in revenue. Reports suggest that Musk aims to raise around $75 billion through this stock sale, which would outshine the previous record set by Saudi Aramco’s $26 billion public offering.
SpaceX, officially Space Exploration Technologies Corp., intends to use the raised capital for ambitious projects, such as sending humans to the moon and Mars. These initiatives aim to safeguard humanity from potential existential threats. “We do not want humans to have the same fate as dinosaurs,” states the company’s filing.
The prospectus outlines a vision reminiscent of science fiction, with part of Musk’s compensation being tied to the establishment of a human colony on Mars with at least one million people. Even without achieving this, the stock sale could position Musk as the world’s first trillionaire. Currently, his net worth is estimated by Forbes to be $839 billion.
SpaceX engages in various ventures, some thriving while others face challenges. Starlink, its satellite communications business, generated $4.4 billion in operating income last year. The service, utilizing 10,000 satellites, provides internet to 10 million users across 150 countries.
Meanwhile, SpaceX’s recent acquisitions, including a social media platform and an AI business, face financial difficulties. The artificial intelligence unit reported a $6.4 billion operational loss last year. These purchases have drawn criticism from some SpaceX investors as costly ventures.
SpaceX has benefited significantly from government contracts, sparking scrutiny over Musk’s connections with the Trump administration. Some have questioned whether these ties impacted contract awards. Over the past five years, SpaceX secured $6 billion in government contracts from NASA and the Defense Department, with a fifth of last year’s revenue stemming from federal sources.
Musk’s compensation extends beyond a modest salary of $54,080. Stock grants will vest based on certain market cap objectives, including SpaceX’s valuation reaching $7.5 trillion and achieving technological milestones such as space-based data centers.
The filing reveals Musk’s significant control over SpaceX through a special stock class. This structure, providing him and select shareholders ten votes per share, could restrict general investor influence on corporate decisions.
SpaceX is scheduled to begin pitching its public offering to potential investors in what is known as a “road show” starting June 4.
Associated Press writer Alex Veiga contributed to the report.