SpaceX speeds up its IPO

TL;DR: SpaceX is accelerating its IPO timeline and is now aiming to list its shares on the Nasdaq as early as June 12, Reuters reported Friday. But the timing is complicated: Starship, a new rocket prototype NASA is counting on for its moon mission, has a pivotal test flight Tuesday, and more than 50 employees have left since the xAI merger. So what’s the rush?

What happened: The company is aiming to make its prospectus—an SEC filing laying out its business and finance essentials—public as early as Wednesday in what is set to be the biggest IPO in history at a valuation target of about $1.75 trillion, sources told Reuters. The accelerated IPO was apparently partially driven by an SEC review that was faster than expected.

Some are worried about what the giant IPO could mean for the rest of the market. “SpaceX would create a bubble unto its own” if underwriters released too few shares to the public, Jim Cramer, CNBC financial commentator and host of Mad Money, warned.

Inflection point: The stakes are high both literally and figuratively. SpaceX is the only money-making part of the SpaceXAI equation, and a test flight launch on Tuesday of its redesigned Starship megarocket—central to NASA’s plan to return astronauts to the moon by 2028—could change how investors respond to the IPO.

Talent bleed: SpaceXAI has reportedly lost more than 50 top researchers and engineers since the merger in February, and that's on top of every xAI co-founder walking out the door (save for the man in every room, Musk).

Musk, for his part, is tightening control over his consolidated empire. According to an excerpt from the SpaceX IPO filing viewed by Reuters, the deal is structured so that nobody can fire Musk from his role as chief executive and board chairman without his consent. This might sound familiar for those following the Musk vs. Altman saga: Altman alleged in his testimony last week that Musk wanted to “have total control” of the startup in its early days. Altman also said that Musk implemented severe managerial tactics (which is consistent with his style at Tesla and DOGE). 

Bottom line: SpaceX is racing to cash in on peak AI euphoria before OpenAI and Anthropic show up—but between the talent exodus, Tuesday's test flight, and a CEO who can't be fired, investors have a lot to weigh. —LC