Elon Musk's SpaceX is on the verge of a historic valuation leap, with a new secondary share sale potentially pushing its worth to a staggering $800 billion. According to a report by the Wall Street Journal, this move could propel the aerospace giant past AI leader OpenAI to become the most valuable privately-held company in the United States.
The Road to a Record Valuation
The reported valuation target marks a dramatic doubling from the company's $400 billion valuation in its most recent secondary sale. It is crucial to note, however, that there is no guarantee the company will achieve this ambitious $800 billion figure. The share sale is structured as a tender offer, a method SpaceX typically employs twice a year, allowing employees and early investors to liquidate some of their holdings.
This development comes alongside significant news for the investment community: company executives have indicated that SpaceX is actively considering an initial public offering (IPO) next year. This is a move investors have anticipated for years, especially as the IPO market shows signs of recovery in 2025 after a prolonged slowdown.
Starlink and Government Contracts Fuel Growth
The surge in valuation is largely attributed to the phenomenal success of its Starlink satellite broadband service. Starlink now boasts over eight million active customers globally, providing critical connectivity in remote areas of the US and playing a pivotal role in conflict zones like Ukraine. This rapidly expanding revenue stream is a key factor exciting investors.
Beyond Starlink, SpaceX has cemented its role as an indispensable partner for the US government. The Texas-based company regularly launches missions for commercial satellite operators and key US agencies, including NASA, the Pentagon, and the intelligence community. Its work ferrying astronauts and satellites to orbit is a cornerstone of its business.
The company's ambitions extend far beyond current operations. It is investing heavily in two transformative projects:
- Direct-to-Cell Service: SpaceX is building a service to connect satellites directly to standard mobile phones, aiming to eliminate mobile dead zones worldwide. To support this, the company has committed more than $20 billion in cash, stock, and debt to secure necessary spectrum, including a recent agreement with EchoStar.
- Starship Development: Massive resources are being poured into the Starship mega-rocket, designed for future missions including NASA's planned astronaut moon landings.
What an $800 Billion Valuation Means
If achieved, the $800 billion valuation would not only crown SpaceX as the US's top private company but also underscore its dominant position in the new space economy. The potential 2026 IPO, hinted at by executives and reported by tech site The Information, could be one of the largest and most significant public listings ever, bringing the company's two-and-a-half-decade journey as a private entity to a climax.
The improving IPO landscape, evidenced by successful debuts like Circle Internet Group and Figma in 2025, sets a favourable stage. While a government shutdown temporarily slowed activity, many bankers and investors are optimistic that 2026 could see IPO levels return to normal, potentially creating the perfect window for a SpaceX public offering.
