Key Takeaways

• • SpaceX remains a private company despite speculation about a potential IPO.
• • CEO Elon Musk prioritizes long-term goals over short-term shareholder demands.
• • The company is valued at an estimated $210 billion as of June 2024.
• • SpaceX has reduced space travel costs with reusable rocket technology.
• • A Starlink IPO remains a possibility, though Musk has not pursued it.

Is Elon Musk planning to take SpaceX public?

SpaceX is a privately funded rocket manufacturer and transport services company. Also known as Space Exploration Technologies, it was founded by Elon Musk. SpaceX has developed a reusable rocket and launch system to significantly reduce the cost of space flight.

On May 30, 2020, SpaceX launched its first-ever crewed mission, Demo-2, a test flight that sent NASA astronauts Bob Behnken and Doug Hurley to the International Space Station. A loftier goal was to crew a space mission to Mars by 2024, but that has not happened.

There’s a lot of speculation on whether Musk may take his space technology public. Musk has control over SpaceX shares and this impacts such decisions. Let’s look at more about this space technology company and try to discern whether investors will ever see it go public in an initial public offering (IPO). There are some conflicting interests between shareholder demands and Musk’s long-term vision.

Understanding SpaceX: Innovations and Financing

Musk founded SpaceX in 2002 to change space technology and make exploration possible for people other than trained astronauts. Based in Hawthorne, Calif., SpaceX has roughly 13,000 employees and remains a private company.

Funding for SpaceX initially came from Musk, who used most of the money he received from the sale of PayPal as capital for the project. The company also received money from Founders Fund, Draper Fisher Jurvetson, and Valor Equity Partners. In January 2015 Google and Fidelity invested $1 billion for a stake of just under 10%.

A key innovation was the company’s reusable booster rockets, which flew 65 times with a 100% success rate as of August 2021. A record of 22 launches and landings for a single booster was set in September 2024.

The company’s Falcon 9 spacecraft costs a minimum of $69.75 million to book through 2024, while a mission using the Falcon Heavy should be expected to cost significantly more.

SpaceX’s Collaborations with NASA

SpaceX has launched dozens of missions from facilities in California, Texas, and Florida. In 2008 NASA awarded SpaceX a $1.6 billion contract to deliver cargo to the International Space Station (ISS).

In May 2012 its Dragon spacecraft visited the ISS, which marked the first time a craft developed by a private company had done so. In September 2014, NASA awarded SpaceX a $2.6 billion contract to transport NASA astronauts into space.

NASA is increasingly relying on private companies for services—much to the benefit of SpaceX, Sierra Nevada Corporation, Boeing, and Blue Origin, among others.

As noted above, SpaceX launched its first-ever crewed mission on May 30, 2020, that sent NASA astronauts to the International Space Station.

Elon Musk’s Visionary Ventures

The company aims to save on manufacturing expenses by through the use of its reusable rockets. The industry standard of has always been one-time-use rockets. Reusable ones should decrease the overall cost of entering space.

Musk is perhaps best known for cofounding electric car manufacturer Tesla in 2003. He also cofounded the online payment services company that later became PayPal. Other notable projects include the Boring Company, which aims to burrow tunnels underneath cities to relieve traffic congestion, and Neuralink, which is developing interfaces to connect the human brain to computers.

PayPal, which went public in 2002, was quickly snapped up by eBay, and then returned to the public market in 2015. Tesla’s shares, on the other hand, debuted in 2010.

With Musk’s track record, it would not be surprising if SpaceX also went public. According to information provided to the Federal Communications Commission (FCC), Musk owns 47.4% of SpaceX and controls voting rights for 78.3% of the shares.

How SpaceX Streamlines Manufacturing

SpaceX can launch a rocket for $70 million, compared with the $1.5 billion estimate from NASA. The lower cost is due partly to an emphasis on in-house manufacturing. For example, instead of spending $10 million to purchase an avionic system (radio equipment and other communications gear), SpaceX was able to develop gear in house for about $10,000.

As a private company, SpaceX is free from the restrictions associated with a government bureaucracy that normally plague organizations such as NASA. This allows Musk to move with surprising speed, rapidly creating parts and equipment, securing launchpad sites, and hiring employees from competing companies and universities.

SpaceX’s IPO Prospects: Challenges and Considerations

In 2018 SpaceX logged an estimated $2 billion in launch revenue, compared with an industry-wide total of $8 billion. A research note published by Morgan Stanley in October 2020 valued SpaceX at $100 billion, based on its Starlink satellite broadband business.

In March 2020 Gwynne Shotwell, the company’s president and chief operating officer (COO), said Starlink could be a candidate for a spinoff IPO, but Musk said he gave no thought to such a move. As of January 2024 there was chatter that an IPO could come in 2025 or 2026. It was reported in June 2024 that SpaceX is valued at an estimated $210 billion.

Central to the story of SpaceX is the company’s government contracts, which Musk is likely to want to keep. A public offering for the broader company could deter the security of future government contracts, though the necessity of NASA outsourcing may override a decision to turn away from SpaceX due to a public offering.

By operating privately, SpaceX is free from the burdens of transparency and shareholder claims. Musk can do as he wants, when he wants, to promote the company’s goals. Still, the presence of Boeing as a publicly traded company has not prevented the U.S. government from making use of its technologies and services.

Musk has suggested SpaceX will remain private, as the company’s long-term goals conflict with the short-term demands of public markets and stockholders. Shotwell said SpaceX could not go public until the company was flying regularly to Mars. SpaceX had hoped to send its first cargo mission to Mars in 2022, followed by a crewed mission in 2024, but couldn’t meet the goal. In September 2024 Musk posted on the social media platform X (formerly Twitter, which Musk acquired in ???) that he is planning five uncrewed missions to Mars in 2026 “when the next Earth-Mars transfer window opens.”

The argument remains—opening SpaceX to the public could change its fundamental mission to Mars into a mission for profits. Musk is not likely to tap the public markets soon for an IPO unless funding from the U.S. government or institutional investors such as Google unexpectedly drops.

How Much Is SpaceX Valued At?

In June 2024, it was reported that SpaceX was valued at $210 billion. This is referred to as a double-hectocorn, which is worth 200x a unicorn.

Is SpaceX a Public Company?

SpaceX is not a public company; it is still privately owned. However, Tesla, one of Elon Musk’s other companies, is a public company. Musk has discussed the possibility of taking SpaceX public, or at least Starlink, which is a part of SpaceX that seeks to provide internet service to most of the Earth via satellites in space.

How Much Is Elon Musk Worth?

As of Oct. 24, 2024, Elon Musk was worth $269.8 billion, according to Forbes’ Real Time Billionaires List, making him the richest person in the world.

The Bottom Line

There’s a lot of speculation as to whether Musk may take his SpaceX public. If the company reaches its ultimate goal of a historic crewed mission to Mars, Musk will have crafted yet another amazing success story. In the meantime, the company is more concerned with attaining more government contracts and successful launches.

SpaceX remains a young space company, one that is not immune from financial pressures. The company’s long-term goals can conflict with the short-term demands of public markets and stockholders.

Correction—Dec. 8, 2021: A previous version of the article claimed that none of SpaceX’s rockets have been flown more than three times. Some of their rockets have been flown more than three times.