Investor demand for SpaceX's IPO has exceeded $250 billion.
Starlink remains the company's main profit engine, while AI is expected to drive future growth.
Valuation, governance and heavy spending plans are among the key issues investors are watching.
SpaceX's planned initial public offering (IPO) has emerged as one of the most closely watched market debuts in recent years, drawing more than $250 billion in investor demand for an offering seeking about $75 billion, according to Reuters. The strong response has put the company on track for what could become the largest IPO ever.
The Elon Musk-led company is set for its June 12 market debut, with investors closely watching how the stock performs amid heightened interest in artificial intelligence (AI) and space technology.
1 June 2026
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Investor enthusiasm is being driven by SpaceX's dominant position in satellite internet, its leadership in rocket launches and growing expectations around AI. Yet alongside the excitement, analysts and investors are also examining several risks that could shape the company's long-term performance.
Valuation and Profitability Under Spotlight
At a targeted valuation of roughly $1.8 trillion, SpaceX is already being priced among the world's most valuable companies. The deal is oversubscribed by about 3.5 to 4 times the planned offering size, Reuters reported.
The valuation comes despite the company remaining loss-making. According to SpaceX's IPO filing, revenue rose to $18.7 billion in 2025, but the company reported a net loss of about $4.9 billion after posting a profit the previous year. First-quarter 2026 revenue stood at $4.7 billion.
Starlink Drives Profits While AI Consumes Capital
SpaceX's satellite internet business, Starlink, remains the company's financial backbone. According to CNBC's analysis of the IPO filing, Starlink generated more than $11 billion in revenue during 2025 and was the company's only consistently profitable division.
Subscriber growth has also been rapid, with the customer base expanding to more than 10 million users by March 2026. The business now operates in more than 155 countries and serves consumers, enterprises, airlines and government agencies.
However, much of the company's spending is increasingly directed toward AI. Morningstar and other analysts noted that AI-related operations accounted for the majority of SpaceX's capital expenditure in recent quarters. Bloomberg reported that some Wall Street forecasts expect AI revenue to grow dramatically over the next decade, but those projections depend on technologies and markets that are still developing.
Governance and Execution Risks Remain
Investors are also closely reviewing SpaceX's governance structure. The IPO filing shows Elon Musk will retain majority voting control through a dual-class share structure while continuing as chief executive, chief technology officer and board chairman.
According to Axios and other reports, the structure will significantly limit the influence of public shareholders on major corporate decisions. Some pension funds have publicly raised concerns about governance, while Denmark's AkademikerPension has said it will not participate in the IPO, citing valuation and governance issues, according to Bloomberg.
The company's future plans also require substantial investment. Analysts cited by Bloomberg expect capital expenditure to remain elevated for years as SpaceX expands AI infrastructure, satellite networks and launch capabilities.
With pricing expected this week, investors appear convinced by SpaceX's long-term story. Whether the company's AI ambitions can eventually match the success of Starlink may become one of the defining questions after the shares begin trading.
