![\"SpaceX](\"https:\/\/www.newsbeep.com\/uk\/wp-content\/uploads\/2026\/06\/e5a968ca3d193847054995c8ce8b48a3.jpeg\")
SpaceX has a sky-high valuation despite losing billions of dollars a year (Patrick T. FALLON) \u00b7 Patrick T. FALLON\/AFP\/AFP <\/p>\n SpaceX has a sky-high valuation despite losing billions of dollars a year (Patrick T. FALLON) \u00b7 Patrick T. FALLON\/AFP\/AFP <\/p>\n
SpaceX is inviting investors to bet on Elon Musk’s vision of AI data centers in space and humans on Mars.<\/p>\n
It’s gamble that comes with limited voting rights, restricted ability to sue, and a business that is currently losing billions of dollars a year.<\/p>\n
– Magic touch –<\/p>\n
Musk’s celebrity and his track record turning Tesla and SpaceX into global giants have earned him a reputation as the man who sees where technology is heading — and builds a world-class business from it.<\/p>\n
The sky-high valuation for SpaceX — nearly $1.8 trillion — is based on the idea that his legendary run will continue and that Musk can achieve his goal of data centers in space and putting people on Mars.<\/p>\n
But nothing at the core of the business as it stands today lines up with that valuation, with the company growing fast but losing money.<\/p>\n
Revenue hit $18.7 billion in 2025 — up 33 percent from the year before — but costs grew even faster, producing a net loss of $4.9 billion. In the first quarter of 2026, it lost another $4.3 billion.<\/p>\n
Yet SpaceX’s IPO filing claims it could pull in over $28.5 trillion in revenue.<\/p>\n
The real money, in SpaceX’s telling, is in internet connectivity through its Starlink satellite service and above all artificial intelligence, provided by data centers rocketed into space.<\/p>\n
Yet xAI — the AI unit of SpaceX — has struggled to keep pace with rivals. Its standalone AI revenue stands at around $500 million, a fraction of OpenAI’s and Anthropic’s revenue.<\/p>\n
– Musk in control –<\/p>\n
Musk will keep an iron grip on the rocket and AI giant even after it brings in a legion of new investors.<\/p>\n
Ordinary investors who buy SpaceX stock will get what are called Class A shares, which give them one vote each on company decisions.<\/p>\n
Musk, meanwhile, holds a different kind of share — Class B — that carries 10 votes apiece. His votes will simply swamp everyone else’s with about 82 percent of the total voting power in the company.<\/p>\n
Known as a dual-class structure, tech giants like Google, Meta and Snap have used the same playbook to keep their founders in charge after going public.<\/p>\n
– Don’t sue me –<\/p>\n
Frustrated by years of shareholder lawsuits against publicly traded Tesla, Musk has ensured that SpaceX is built inside a legal fortress.<\/p>\n
SpaceX requires shareholder lawsuits to be filed in a specialized Texas business court.<\/p>\n
If a judge refuses, disputes go to private arbitration with no jury and no class actions — stripping investors of the main legal tool used to take on large corporations.<\/p>\n
The filing acknowledges there is “risk” a court could reject these provisions if challenged, but until one does, that is the rule.<\/p>\n
– Regular investor –<\/p>\n
Tapping into his legion of fans, SpaceX will set aside 30 percent of the IPO shares for everyday investors, not just big Wall Street firms.<\/p>\n
In a normal IPO, institutions usually get most of the shares, so this is a bigger-than-usual chance for regular people to buy in.<\/p>\n
Why does that matter? Because it changes who gets to own the stock on day one.<\/p>\n
If more shares go to individual investors, the company is trying to spread ownership beyond hedge funds and mutual funds, some of whom may balk at the company’s financials.<\/p>\n
It can also make the stock more volatile at first. If a lot of excited people rush to buy, the price can jump quickly.<\/p>\n
– No choice but to buy –<\/p>\n
More than 60 percent of US stocks are owned by passive funds that copy a market index like the Nasdaq 100.<\/p>\n
Nasdaq changed its rules in May to allow SpaceX to join the index within 15 trading days — down from the previous three months.<\/p>\n
The index funds, whose investors include US retirement plans, will have to find room for the new entrant, creating a big wave of buying for SpaceX and selling of other stocks.<\/p>\n
Moreover, only 4 percent of the $1.77 trillion company will be made available for purchase — an exceptionally thin offering.<\/p>\n
It means all those funds — and Musk fans — buying SpaceX will be chasing a very small pool of available stock, which could push the price up sharply.<\/p>\n
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