The biggest stock market debut in history is just days away. Here’s what the headlines are missing.
1. It’s Not Just a Rocket Company
SpaceX merged with Elon Musk’s AI company, xAI, which also owns X (formerly Twitter), just four months before going public. SpaceX is part rocket company, part satellite internet provider, part AI lab, and part social media platform—all under one ticker: SPCX.
2. SpaceX Wants to Put Data Centers in Space
One of SpaceX’s most ambitious and least-known projects is the development of space-based data centers. The goal is to build massive AI computing platforms in orbit, powered by near-continuous solar energy and connected through Starlink’s high-speed satellite network.
3. It Lost Nearly $5 Billion Last Year
Despite a hoped-for $1.75 trillion valuation, SpaceX posted a net loss of $4.9 billion in 2025. Investors are betting heavily on the company’s future—one the company itself acknowledges relies on “unproven technologies or technologies that do not exist.”
4. Starlink Is the Real Money Maker
Starlink, the company’s satellite internet arm, generated $11.4 billion in revenue in 2025 with profit margins above 60%. It’s the cash cow funding everything else. Meanwhile, the xAI and X segment burned through $6.4 billion in operating losses last year.
5. Musk Controls 80% of the Vote
There are two classes of shares. Musk’s Class B shares carry 10 votes each, while the Class A shares being sold to the public carry just one. Musk can unilaterally approve mergers, set his own pay, and override the board—indefinitely.
6. Only 4.3% of Shares Are Going Public
The IPO will raise $75 billion at a $1.75 trillion valuation, meaning only about 4.3% of the company will initially be available for public trading. With such a small float, investor demand could have an outsized impact on the share price, potentially leading to significant volatility.
7. Tesla Owns a Piece of SpaceX
Tesla invested roughly $2 billion in xAI, an investment that converted into SpaceX shares through the merger. Tesla now holds about $3.7 billion worth of SpaceX stock. Two separate public companies, both run by Musk, now partially own each other.
8. The U.S. Government Is a Major Customer
Starlink holds a $1.8 billion contract with the National Reconnaissance Office, much of which remains classified, and its government-only unit, Starshield, is believed to hold billions more in classified deals. Musk’s companies have received more than $38 billion in government funding since 2003.
9. No S&P 500 Inclusion Anytime Soon
Despite its enormous size, SpaceX won’t be eligible for inclusion in the S&P 500 anytime soon. S&P Dow Jones Indices requires newly public companies to trade for at least 12 months before consideration. Companies must also meet profitability requirements, including positive GAAP earnings over the most recent four quarters.
10. One Rocket Has Flown 34 Times
SpaceX has completed around 650 orbital launches, and more than 540 used a previously flown booster. One specific Falcon 9 booster has flown 34 times. This level of reusability is a major reason SpaceX can undercut competitors on launch costs and maintain industry-leading margins.
What This Means for Ultra-High-Net-Worth Investors
For investors with significant, concentrated portfolios, the SpaceX IPO presents a unique set of opportunities—and risks—that require a more nuanced lens than standard market analysis provides.
Concentration & Governance Risk: Musk’s 80% voting control means SPCX behaves less like a public company and more like a controlled private asset with a liquid wrapper. For portfolios exposed to Tesla, xAI, or X, the cross-ownership creates hidden concentration that standard diversification models won’t capture.
Tax & Liquidity Planning: The 12-month S&P 500 exclusion window, combined with expected volatility from the small float, creates potential tax-loss harvesting windows and options premium opportunities for sophisticated investors willing to be patient and tactical.
Geopolitical & Government Dependency: With over $38 billion in government funding and classified contracts across Starlink and Starshield, SpaceX’s revenue base is deeply entwined with U.S. defense and intelligence priorities. Investors with existing government contract exposure should evaluate potential regulatory scrutiny carefully.