Elon Musk is going all-in on an unproven technology

SpaceX, the rocket company founded by Elon Musk in 2002, has filed to go public on the NASDAQ exchange in June 2024, targeting the largest initial public offering ever with a $75 billion raise and a valuation of $1.75 trillion. The IPO follows years of dismissing public markets, with Musk arguing that the firm’s goal of building a Martian city requires long-term funding. However, SpaceX’s financial filings reveal a company with a fast-growing but loss-making AI division, xAI, which lost $6.4 billion in 2025 while capital spending surged to over $20 billion. The IPO’s success hinges on the development of Starship, SpaceX’s massive rocket, which has faced repeated delays in test flights. Originally scheduled for May 19, 2024, the launch slipped to May 21, with its outcome potentially impacting investor confidence. Despite challenges, SpaceX dominates the space industry, operating the world’s largest space program and launching nearly 90% of payloads into orbit. Its Starlink satellite network, with nearly 10,000 satellites and over 10 million customers, remains a profitable segment, generating $4.4 billion in operating profit in 2025. Musk’s vision extends beyond Earth, with plans to deploy 100 terawatts of computing power in space for AI applications, addressing limitations of terrestrial data centers. The regulatory filings also tie his compensation to achieving a valuation of up to $7.5 trillion, alongside building a million-person city on Mars. Critics may question the feasibility of these goals, given SpaceX’s rapid burn rate and the unproven nature of its AI infrastructure ambitions. The company’s dominance in space has disrupted traditional players like Boeing and Lockheed Martin, while its reusable rockets have revolutionized launch costs. However, the merger with xAI has accelerated financial strain, with SpaceX’s losses growing faster than revenue. Investors will weigh whether the company’s long-term vision justifies the risks, especially as Starship’s success remains uncertain. SpaceX’s IPO marks a pivotal moment for both the company and the space industry, blending traditional aerospace with Musk’s high-risk, high-reward bets on AI and interplanetary colonization.