Elon Musk’s SpaceX aims to raise more than $25 billion through an initial public offering (IPO) in 2026. A person familiar with the plan told Reuters that this move could lift the company’s valuation to over $1 trillion. If it proceeds, the listing could rank among the world’s biggest IPOs.

Starlink’s Expansion Drives the IPO Push

SpaceX is preparing for the public listing mainly because its Starlink satellite internet business is growing quickly. The company is also developing direct-to-mobile connectivity and making progress with Starship, its rocket system designed for moon and Mars missions. These advances have strengthened investor interest.

Discussions with Banks Have Begun

According to the source, SpaceX has started talking with banks about launching the IPO around June or July 2026. The person requested anonymity because the information is confidential. SpaceX did not immediately respond to Reuters’ request for comments.

IPO Market Shows Signs of Recovery

The company’s planning comes at a time when the IPO market is bouncing back after three slow years. Wall Street leaders expect this momentum to continue into 2026. Many high-profile firms are preparing for listings, which could fuel strong demand.

Experts Call SpaceX a Top Opportunity

Samuel Kerr, head of equity capital markets at Mergermarket, told Reuters, “SpaceX represents one of the most exciting opportunities in the global IPO market and has been on the dream-list of several investors for years.” He added that space technology is now viewed as a core area in defense, satellite expansion, and tech infrastructure, including the growth of “orbital data centers.”

A Listing Could Trigger More Public Offerings

Several major startups have stayed private for longer, raising large sums in private markets. A high-profile offering from SpaceX could encourage more of them to list publicly. SpaceX is currently the world’s second-most valuable private startup, behind OpenAI, according to Crunchbase. OpenAI and Anthropic are also considering IPOs next year.

Kerr noted, “If all these deals come through the U.S. IPO market will experience a genuine revival, the green shoots of which have already been seen this year.”

Questions Around Valuation and Share Sales

News of the potential IPO came days after another report said SpaceX was launching a secondary share sale valuing the company at $800 billion. Musk rejected that report and called it inaccurate. So far, Saudi Aramco remains the only company to debut with a valuation above $1 trillion. The oil giant listed in 2019 with a market capitalization of $1.7 trillion.

Funds Will Support New Space-Based Data Centers

Bloomberg reported that SpaceX plans to use funds from the IPO to build space-based data centers. The company wants to purchase the chips required to operate these systems. Bloomberg was also first to reveal the early details of the possible listing.

A New Space Race Intensifies

American billionaires and private firms are investing heavily in rockets, satellites, and lunar technology. Companies like SpaceX and Jeff Bezos’ Blue Origin are leading this wave. As NASA expands its commercial partnerships and defense spending rises, space technology has become crucial for national security and long-term economic growth.

Concerns About Musk Managing Multiple Giant Companies

However, analysts warn that investors may be cautious. Some worry about Musk’s ability to manage more than one publicly listed company worth over $1 trillion. Dan Coatsworth, head of markets at AJ Bell, told Reuters, “SpaceX could be one of the most divisive stocks to join the market in years.”

He added, “If SpaceX did float, expect growing pressure on Musk to commit to only one of his listed entities – Tesla or SpaceX. It’s hard to see how one individual could run two $1 trillion+ companies at the same time.”