On the Eve of IPO, SpaceX Invites Top Wall Street Fund Managers for "On-Site Visits"

With SpaceX's anticipated unprecedented IPO just weeks away, the Musk-led space and AI giant is launching a full-scale offensive to court institutional investors. According to a report by The Information on Friday, several top Wall Street fund managers plan to travel to the southernmost tip of Texas and Memphis, Tennessee, during the week of April 20 for exclusive on-site tours of SpaceX facilities. This event is a core component of the company's intensive investor roadshow over recent weeks. Concurrently, SpaceX is focused on streamlining its money-burning xAI operations. xAI's Chief Financial Officer, Anthony Armstrong, has departed, and the company has indefinitely shelved a wastewater treatment facility project in Memphis costing over $80 million. These moves indicate that SpaceX is performing a final financial and image cleanup for its IPO. However, valuation divergence remains the biggest variable—some investors have already informed underwriting banks that the previously reported $2 trillion valuation is difficult to accept and are urging the company to consider lower pricing. Roadshow Kicks Off, Investors to Visit Starbase and Colossus Data Centers According to three people familiar with the matter, the two-day site visit will take institutional investors to Starbase in Texas—where SpaceX is building the world's largest fully reusable rocket—and to Colossus 1 and Colossus 2 in Memphis, two large data centers under xAI. According to sources, the core narrative currently being communicated to investors revolves around SpaceX's strategic vision: combining its unique satellite development capabilities with plans to deploy high-end chips in space over the coming years, while continuing ground-based data center construction. This "space-ground integrated" AI infrastructure narrative is the central story SpaceX is telling to the public market. Valuation Dispute Remains Unresolved, Pricing to Depend on Market Response The scale and valuation of the IPO will ultimately depend on investor reception to the roadshow. According to The Information, some investors have expressed concerns to underwriting banks, deeming the $2 trillion valuation reportedly sought by SpaceX difficult to digest and suggesting a lower pricing range. Elon Musk himself previously denied such reports on X, stating the company would not seek such a high valuation. SpaceX's IPO is currently expected to move forward in June this year. If successful, it could become one of the largest new stock offerings in history. xAI Executive Departure Wave Continues, SpaceX Veteran Takes Charge of Integration Amid the IPO sprint, xAI's executive team is undergoing significant upheaval. According to two sources, xAI CFO Anthony Armstrong has departed. Armstrong, a former Morgan Stanley banker, joined xAI last fall and led the company's data center construction and the $20 billion funding round announced in January. Following SpaceX's acquisition of xAI in February, Armstrong was placed under SpaceX CFO Bret Johnsen, who is currently leading the post-merger company's IPO process. Before joining xAI, Armstrong was involved in advisory work for Musk's 2022 acquisition of Twitter and served in the Department of Government Efficiency led by Musk in 2025. Armstrong's departure is not an isolated case. According to The Information, since SpaceX completed its acquisition of xAI (which valued xAI at $250 billion), multiple senior figures at xAI, including several co-founders, have departed. Currently, Michael Nicolls, a senior SpaceX executive and head of the Starlink team, has taken over leadership of most of xAI's operations, reporting to President and COO Gwynne Shotwell. According to Business Insider, Nicolls has brought engineering leadership from SpaceX and stated in an internal memo that xAI is "clearly falling behind." Cutting Costs, xAI Shelves Memphis Wastewater Project In line with pre-IPO financial slimming, SpaceX is pushing xAI to cut all non-revenue-generating expenses. According to one source, Musk recently requested that xAI accelerate plans for new AI models while reducing expenditures. The most direct manifestation of this is xAI indefinitely shelving a wastewater recycling facility in Memphis with a construction cost of over $80 million. The facility was originally planned to provide recycled water for the Colossus data center and other industrial sites, with xAI officially breaking ground last October. According to local media outlet Daily Memphian, the engineers responsible for the project have confirmed it is in a state of "indefinite suspension." Musk subsequently responded on X, stating, "We need to focus on getting Colossus 2 finished and extremely stable, and then we'll build the water recycling plant." However, this decision carries the risk of a political backlash in Memphis. xAI's Colossus data center has become a major local political issue, and the wastewater treatment facility was originally a key initiative for xAI to demonstrate its commitment to mitigating environmental impact. The shelving of the project is expected to provoke strong reactions locally.