SpaceX IPO Poised for Record $2 Trillion Valuation Amid Shareholder Battles

Summary

Get ready for the largest IPO in history: SpaceX is slated to launch next month with an estimated valuation of a staggering $2 trillion, far surpassing Saudi Aramco's 2019 record of $29 billion. However, this monumental move is facing significant opposition, primarily from large US pension funds like those in California and New York, which collectively manage over a trillion dollars. Their main concern centers on a provision allowing the CEO, Elon Musk, to only be removed by a vote of Class B shareholders, effectively granting him veto power over his own termination. This mirrors a past controversy with Tesla, where a judge overturned Elon Musk's $56 billion compensation package despite overwhelming shareholder approval, a decision that ultimately led Tesla to reincorporate in Texas and prompted Delaware to reform its laws. The pension funds that opposed the Tesla package are now voicing similar concerns about SpaceX's IPO structure. SpaceX's revenue is largely driven by its Starlink satellite internet service, which brought in an estimated $11 billion last year and is growing rapidly. Launch services contribute another $4.5 billion, with SpaceX dominating the market by completing more launches than all other providers combined. Looking ahead, Google is exploring building AI data centers in space, a venture heavily reliant on SpaceX's decreasing launch costs, which are projected to fall to an economically viable level by the mid-2030s. SpaceX also operates Star Shield for government contracts, totaling around $2 billion.