SpaceX IPO: What does it mean?

Image VIA Bloomberg Television

Yesterday, SpaceX (SPCX) debuted on the NASDAQ with the largest IPO in history. Announced on Friday, each share was to be priced at $135, with the offering of 555.6 million shares, which meant they were seeking to raise a little over $ 75 billion.

Previous analysts placed SpaceX's total value at around $1.77 Trillion, a ridiculously large number that would have made them the 7th largest company by market cap, right between Broadcom (AVGO) and Saudi Aramco (2222.SR). However, this number was quickly passed as SpaceX closed at $160.95 a share, meaning just a one-day increase of 19.22%.

With this record-smashing day, SpaceX became the 7th largest company, with a total market cap of $2.104 Trillion (Or $2,104,000,000,000), immediately adding SpaceX to the Magnificent 7 family (dethroning Broadcom). Notably, this made Elon Musk the first trillionaire in history.

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We see very clearly that there is a large amount of hype surrounding this IPO, but what do the numbers say? When viewing SpaceX, it's best to view it as a conglomerate of three separate companies. Those companies are Starlink, SpaceX, and xAi. But what do those companies do?

The first company, Starlink, is the only profitable one out of the three. It serves as a satellite network that aims to provide high-speed and low-latency internet to anyone in the world. In 2025, it generated $11.4 billion in revenue and $4.42 billion in operating income, a very nice amount but still a far cry from the company's current evaluated $2.104 Trillion value.

The second company, SpaceX, is the overall face of the brand. It operates as a multipurpose aerospace manufacturer and transportation company. Its key aspects are its exploration, in which it shuttles astronauts to and from the ISS (International Space Station), and its launch services, where SpaceX is the world's leading commercial launch provider. From a financial side, it brought in $4.1 billion but suffered a total operating loss of $657 million.

The third and final company that comprises SpaceX is XAi, and to put it lightly, xAi is a dumpster fire. xAi develops AI models such as Grok. Last year alone, they suffered a $6.35 billion operating loss, with an additional loss of $2.5 billion in Q1 due to expenses related to computing infrastructure. This single side of SpaceX tanked their company earnings for the entire year.

So to reiterate. As of last year, SpaceX reported a net loss of $4.94 billion, and just this year alone, they reported Q1 losses of $4.28 billion, and somehow they're being placed as the 7th highest value company on the market? The numbers simply don't add up. However, we'll just have to wait to see how this plays out.