SpaceX Could Be the Biggest IPO Ever — How Much of an Investment Is Enough to Get Rich?
Written by
Travis Woods
Edited by
Zuri Anderson
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Elon Musk’s SpaceX — a merger of his rocket-manufacturing company with his artificial intelligence company xAI — appears set for what may be the biggest initial public offering of all time.
While SpaceX has not released a comment on the matter, multiple sources (including CNN) have reported that the company has filed for a gargantuan IPO set for either June or July.
Not only could this IPO radically increase the net value of SpaceX and Musk, it could increase yours, too — but at a cost.
How Much Will Initial SpaceX Stock Shares Cost?
IPO share price depends not just on the total valuation of the company, but the number of individual shares that will be issued (which in this case has yet to be determined). Thus, very little is known about what the individual shares of SpaceX’s IPO will cost. What is known is that SpaceX as a company is currently valued at $800 billion, and xAI is worth $230 billion. That’s a combined worth just over $1 trillion.
With those scant details, private marketplace website Forge Global has predicted that a share of SpaceX stock will cost approximately $608, based on an estimated SpaceX/xAI valuation of $1.44 trillion, as well as the share prices of comparable companies.
What Kind of SpaceX Investment Can Make You Rich?
The big question is, of course, how possible is it to get rich by getting in on SpaceX’s investment ground floor?
Currently, without knowing the actual stock valuation, or how successfully the company will grow once it goes public, the best possible predictor is to look at how IPOs for other large-scale, trillion-dollar companies (such as Amazon, Apple or Microsoft) have done. Were SpaceX to follow an IPO path similar to those other incredibly-successful names and triple its growth after already being valued at over $1 trillion, investors will indeed have a shot at great success — but only if they’re willing to pay for it.
For example, it would require a purchase of 1,000 shares of SpaceX (at around $608,000, assuming a share price of $608) to then earn about $1.8 million off the stock and qualify as “rich.” Or, for those who can afford it, buying 2,000 shares (at around $1,216,000) could net an investor approximately $3.6 million. Again, this is assuming a value trajectory similar to companies like Apple and Microsoft.
The point is, while investors will have the opportunity to make a great deal of money off a SpaceX IPO, it will likely require a great deal of start-up wealth to begin with.
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