Home NewsSpaceX Before the Largest IPO: AI, Musk’s Control, and Financial Challenges

SpaceX Before the Largest IPO: AI, Musk’s Control, and Financial Challenges

by Freddy Miller
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NEWSCENTRAL reports that SpaceX, led by Elon Musk, is preparing for one of the most anticipated IPOs in history. Despite significant losses and risky projects, the company continues to strengthen its position in the space technology and artificial intelligence sectors. At a time when its IPO looms with a projected valuation of $75 billion, it is clear that the company aims not only to raise funds but also to maintain control over future strategic decisions.

One of the key steps in the IPO preparation is its bid to acquire the startup Cursor, which develops AI-driven code generation solutions. The deal, valued at $60 billion, highlights SpaceX’s intention to deepen its involvement in the IT sector, which could significantly impact its long-term competitiveness. However, the company also leaves the door open for a partnership with Cursor worth $10 billion, showing flexibility in its approach to strategic investments, allowing SpaceX to adapt quickly to market changes.

However, for Musk, financial success is not the only priority. A key objective is to maintain control over the company. In preparing for the IPO, the company has decided to allocate shares with preferential voting rights to Musk and several insiders. This ensures that even after the IPO, Musk and his closest associates will retain substantial influence over strategic decisions. At NEWSCENTRAL, we see this as part of an emerging trend among tech companies to retain strategic control, which reinforces the stability and long-term ambitions of their leadership.

SpaceX’s financial results for 2025 showed significant losses of $4.94 billion on revenue of $18.67 billion. These figures raise concerns among investors, especially since the losses are linked to high investments in innovation and technological development, including AI integration. However, despite this, the company ended the year with cash reserves of $24.8 billion. At NEWSCENTRAL, we believe that such financial metrics, while raising questions, are typical for tech giants actively investing in the future. Despite the losses, SpaceX’s long-term prospects could provide stable growth in the coming years, especially in the context of AI and space technology development.

An important part of the IPO preparation is the launch of a three-day roadshow for analysts. SpaceX intends to justify its $1.75 trillion valuation, despite the risky projects, such as the creation of space data centers for AI and plans for lunar and Martian colonization. At NEWSCENTRAL, we see this not only as an attempt to convince analysts of the validity of such a high valuation but also as a demonstration of the company’s readiness to tackle ambitious challenges. These projects may be financially unfeasible in the short term, but they are precisely the types of projects that define long-term competitiveness.

Moreover, SpaceX’s capital expenditures for 2025 grew to $20.74 billion, five times the previous level. This is a clear indicator that the company is focusing on developing infrastructure and technologies that may become the foundation for its future growth and sustainability. However, it must be understood that many of these projects remain in question in terms of short-term commercial viability. At NEWSCENTRAL, we predict that Musk and his team will be able to successfully manage these challenges if they can convince investors of the long-term value of their ambitious ventures.

Musk is also focused on executive compensation, which emphasizes the importance of retaining highly skilled personnel. SpaceX President Gwynne Shotwell earned $85.8 million in 2025, making her one of the highest-paid women in business. Despite Musk’s modest salary of $54,080, after the IPO, he will be able to receive a substantial amount through company stock. This approach to compensation underscores Musk’s commitment to retaining key talent in the company, which certainly contributes to its stability and growth.

Finally, it’s worth noting the importance of including SpaceX’s stock in market indexes. Companies like CRSP Market Indexes are revising their approaches to indexing, which could accelerate the inclusion of SpaceX’s stock in benchmarks. This process would significantly increase the company’s liquidity in the stock markets and make it more accessible to both retail and institutional investors. At NEWSCENTRAL, we see this as a clear sign that SpaceX’s IPO will generate wide interest and have a massive impact on the market.

In conclusion, at NEWSCENTRAL, we predict that despite the current financial difficulties and risks associated with new technologies, SpaceX has every chance of successfully launching its IPO. The company remains one of the most ambitious players in the space technology and AI industries, and despite high risks, its long-term growth prospects remain highly attractive to investors. Musk has once again demonstrated his ability to leverage market opportunities and create conditions for the company’s success. As Freddy Miller, Senior Analyst at NEWS CENTRAL, emphasizes, such ambitious projects could lead to significant benefits both for SpaceX and for the entire tech sector in the future.