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SpaceX is preparing to file for an IPO that could value it at $1.75 trillion

The Elon Musk space company is targeting a mid-June listing to raise $75 billion, with Wall Street already eyeing the bigger prize: a full merger with Tesla

Ian Lyall profile image
by Ian Lyall
SpaceX is preparing to file for an IPO that could value it at $1.75 trillion
Photo by The New York Public Library / Unsplash

SpaceX is moving toward a stock market listing that would rank among the largest in history. According to a research note published today by Wedbush Securities, the company could file a prospectus imminently with the goal of raising around $75 billion, lifting its implied valuation to approximately $1.75 trillion. Media reports cited by Wedbush put a potential listing date as early as mid-June.

The fundraising target represents a significant step up from an earlier figure of around $50 billion, reflecting both the scale of SpaceX's ambitions and the intensity of investor appetite for the deal.

What the money is for

Wedbush, which rates Tesla shares Outperform with a $600 price target, frames the IPO proceeds as fuel for several concurrent bets. SpaceX intends to accelerate Starship launch frequency, expand Starlink into maritime, aviation, and direct-to-mobile services, and pursue additional defence contracts under the Trump administration's Golden Dome missile defence programme. The company is already under contract with NASA to fund a lunar base, and the IPO is expected to provide the capital to advance that work.

The highest investor interest, according to Wedbush analysts Dan Ives and his team, centres on SpaceX's plans to build AI data centres in space. The rationale is straightforward: solar panels in orbit can capture energy continuously, without atmospheric loss or the day/night constraints that limit ground-based generation. U.S. data centre electricity consumption is forecast to reach 470 terawatt-hours by 2030, driven by AI workloads requiring between 10 and 50 times the power density of traditional cloud computing. SpaceX is positioning itself as a solution to that bottleneck.

The xAI thread

The space AI data centre strategy connects directly to Elon Musk's broader empire. Earlier this year, SpaceX acquired xAI, converting Tesla's $2 billion investment in the company into SpaceX shares. That stake represents less than 1% of SpaceX's expected post-IPO valuation, but it draws a structural line between three of Musk's ventures: the rocket company, the AI lab, and the electric vehicle manufacturer.

Wedbush sees that line becoming a merger. The firm continues to forecast that SpaceX and Tesla will combine into a single company in 2027. The recently announced joint Terafab manufacturing facility between the two companies, it argues, represents the first operational step toward that outcome. Musk's stated goal, according to the note, is to own 25% of Tesla over time and use it as the connective tissue for a unified AI and space technology organisation.

Regulatory clearance from the FTC and the DOJ remains an obvious obstacle to any full combination, and Wedbush acknowledges those hurdles. It nonetheless maintains the merger as its central scenario.

Where Tesla sits

The Wedbush note is formally a Tesla research update rather than a SpaceX analysis, which reflects the current dynamic: Tesla shareholders hold indirect exposure to SpaceX through the xAI share conversion, and any SpaceX IPO will crystallise that relationship into something more concrete. Wedbush analysts value Tesla at $600 per share on a sum-of-the-parts basis, against a current price of $372.11.

Whether that target is achievable depends heavily on how the SpaceX story develops. A $1.75 trillion listing would make the company one of the most valuable on public markets and would give Musk a new currency with which to pursue the consolidation Wedbush believes is coming.

Ian Lyall profile image
by Ian Lyall