SpaceX employees have been told to keep mum about the company’s plans for a possible IPO, but that isn’t stopping Wall Street from buzzing about what could become its biggest payday in years, On The Money has learned.
Elon Musk’s rocket company has entered what is known as a regulatory “quiet period,” where it clamps down on public comments that could be seen as touting its potential valuation, sources said. The company could sell as much as $36 billion in stock in a 2026 deal that could value it at $1.5 trillion.
Make no mistake: Every major Wall Street firm and bank is expected to seek a piece of this monster deal. Bankers began meeting with SpaceX executives earlier in the week in what’s expected to be a longish vetting process of the company picking underwriters, they tell On The Money.
While the banker bakeoff is expected to be led by SpaceX chief financial officer Bret Johnsen, Musk is expected to be watching closely from the sidelines. Indeed, bankers are preparing for Musk – known both for his unpredictability and a penchant for micromanagement – to potentially pop his head into some of the meetings.
“With this guy all bets are off,” said a rep for one bank participating in the bakeoff.
A SpaceX rep didn’t respond to a request for comment.
Bankers who spoke to On The Money on the condition of anonymity cautioned against getting too excited about any possible deal. Valuation will depend on market conditions, which have been volatile for tech stocks and all things related to artificial intelligence of late. Anything Musk touches, from his EV company Tesla to SpaceX will have an AI and tech component.
Indeed, bankers tell me they could also see a scenario where Musk postpones the offering indefinitely – whether it’s market conditions or his mood – despite the frenzy that he ignited last week when the company alerted employees about its IPO plans.
Recall Musk’s on-again, off-again pursuit of Twitter, before he finally agreed to go through with his $44 billion purchase and rename the popular social media site, X.
Musk may ultimately feel a public offering isn’t worth the hassle. Companies that were once ripe for IPOs have increasingly remained private given the buoyant market for the trading of non-public shares, and the lack of regulatory intervention it provides. SpaceX recently issued private shares that set its market value at around $800 billion, Bloomberg has reported.
That said, the public markets are seen as key to raising the massive amounts of money SpaceX would need to finance Musk’s grand ambitions for the company, which include not just space exploration but the colonization of Mars, potentially to build artificial intelligence plants.
Musk, who owns 42% of SpaceX, became the world richest man mainly by building Tesla. That said, with SpaceX’s valuation now soaring even as a private company, the world’s richest man is even richer, adding a couple hundred billion to his net worth in recent days.
His fortune is now pegged at more than $680 billion as this column goes to press, the first individual to reach that milestone.
A SpaceX IPO could take that number higher: Don’t be surprised if Musk becomes the world’s first trillion-dollar man. Musk is also working on an AI product, xAI, which Yahoo finance says could have a valuation of $230 billion.
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