<div id="readability-page-1"><div><div><p><span>Author: Bao Yilong, Wall Street Insights</span></p><p><span><span>SpaceX has officially submitted its prospectus to the U.S. Securities and Exchange Commission, which will be the largest IPO in history and could potentially make founder Elon Musk the world's first individual with a net worth exceeding one trillion dollars.</span></span></p><p><span><span>The prospectus, dated May 20, shows that</span><strong><span>SpaceX's revenue for the full year of 2025 reached $18.7 billion, a year-on-year increase of 33%, but with a net loss of $4.9 billion. In the first quarter of 2026, revenue was approximately $4.7 billion, with a net loss of $4.3 billion.</span></strong></span></p><p><span><span> The prospectus did not disclose the planned financing scale; details such as the pricing range will be announced in subsequent supplementary documents. The company's IPO proceeds will primarily be used to repay a $20 billion transitional bridge loan and to expand its AI computing infrastructure, upgrade its launch platform, and expand its satellite constellation. As mentioned by Wall Street Insights, the key highlights of this IPO lie in SpaceX's space launches, Starlink satellite broadband, and the AI ​​business integrated after the acquisition of xAI. The prospectus shows that while the connectivity business has achieved large-scale profitability, the AI ​​segment is still in a period of significant losses and investment, with capital expenditures far exceeding the combined total of the other two segments. The company's free cash flow is struggling under the heavy pressure of capital expenditures. Meanwhile, Musk will hold approximately 85.1% of the voting rights after the IPO. According to Bloomberg data, Musk's current net worth is approximately $667 billion. If SpaceX ultimately goes public with a valuation of $2 trillion, coupled with his Tesla holdings, his personal wealth is expected to surpass the $1 trillion threshold for the first time. Starlink forms the core of revenue, while AI investment drags down profitability. SpaceX divides its business into three major segments: space, connectivity, and AI, resulting in significantly divergent financial performance. The connectivity segment, centered on Starlink satellite internet service, is currently the company's only profitable business. In the first quarter of this year, Starlink achieved revenue of $3.26 billion, accounting for 69% of the company's total revenue, with an operating profit of $1.19 billion. As of the time of its prospectus, Starlink has 10.3 million users worldwide, more than double the 5 million a year ago. However, the company also pointed out that with the increasing proportion of users outside North America and the promotion of low-priced packages, the average revenue per user is declining. Starlink's user growth is slowing down. (Starlink's user growth is slowing down.) The space segment reported an operating loss of $619 million in the first quarter. According to the prospectus, SpaceX has invested over $15 billion in its Starship heavy-lift rocket, with approximately $3 billion earmarked for 2025 alone. The 12th test flight of Starship is expected this week. The AI ​​segment incurred an operating loss of $2.5 billion in the first quarter, becoming the biggest drag on the company's overall profitability. In the first quarter of this year, AI-related capital expenditures reached $7.7 billion, accounting for over 75% of the company's total capital expenditures of $10.1 billion. AI capital expenditures for the full year of 2025 are projected to reach approximately $12.7 billion, nearly doubling year-on-year. Ground-based data centers remain the main battleground; space computing power is still a blueprint. When Musk merged xAI into SpaceX in February of this year, he cited solar-powered orbital data centers as one of the core concepts, stating that within three years, the cost of operating computing power in space would be lower than on the ground. However, the prospectus reveals that xAI is still massively expanding its natural gas turbine-powered ground facilities, including a deal worth approximately $2 billion. The prospectus explicitly states that SpaceX's ability to expand its data center infrastructure depends on turbine supply, natural gas access, and regulatory approvals. Nevertheless, SpaceX still positions its orbital AI computing satellites as its next major growth engine in the prospectus, and plans to begin deployment as early as 2028. The company states in its prospectus: &#34;Orbital AI computing is an extremely challenging technical problem, and we believe we are the only company with a commercially viable path to build orbital AI computing capabilities at scale.&#34; The prospectus indicates that achieving this goal hinges on the Starship rocket fulfilling its established performance objectives to achieve economically feasible on-orbit deployment. SpaceX has applied to the U.S. Federal Communications Commission for permission to launch up to 1 million satellites, which will be equipped with GPUs and powered by solar energy, forming a network of space-based data centers to serve AI projects. The company estimates the potential market size at $28.5 trillion, with AI opportunities accounting for approximately $26.5 trillion, encompassing space-based data centers, consumer subscriptions, digital advertising, and enterprise applications. SpaceX completed its merger with Elon Musk's AI startup xAI in February of this year, with a post-merger valuation of $1.25 trillion. The prospectus states in its risk factors section that Grok is facing &#34;investigations and inquiries&#34; from multiple regulatory and law enforcement agencies regarding pornographic deepfake content. These investigations could lead to legal liability, negative public opinion, or other sanctions. Reportedly, eight law enforcement and regulatory agencies have confirmed that investigations are still ongoing. Musk himself has also acknowledged that xAI's technology &#34;was never built right from the start&#34; and needs to be &#34;rebuilt from the ground up.&#34; Regarding its AI commercialization strategy, SpaceX signed a $40 billion computing power cooperation agreement with Anthropic this month. Anthropic will lease all the computing power of SpaceX's Colossus 1 data center in Memphis, Tennessee, for $1.25 billion per month until May 2029. However, this agreement comes with an unusual clause. Both parties can unilaterally cancel the contract after giving 90 days' notice. This arrangement is extremely rare for a computing power agreement of this scale, making it difficult for investors to include it in their valuation models as a stable source of revenue. Furthermore, SpaceX plans to acquire Cursor, a code editing tool startup, for $60 billion in stock, a deal expected to proceed after the IPO. If the acquisition fails to materialize, Cursor will receive a $1.5 billion termination fee and $8.5 billion in deferred service fees. The prospectus disclosed, for the first time, specific figures on the scale of related-party transactions between SpaceX and other companies under Musk's umbrella. In 2025, SpaceX will purchase $131 million worth of Cybertrucks from Tesla at the suggested retail price, and at the same time also purchase Tesla Megapack energy storage products worth $506 million. From the beginning of 2024 to February 2026, xAI has paid Tesla a total of approximately $731 million. The collaboration between the companies goes beyond procurement. SpaceX and Tesla are jointly advancing a large-scale chip factory project called &#34;Terafab&#34; and an artificial intelligence collaboration project called &#34;Macrohard.&#34; Tesla is mentioned 87 times in the prospectus, which also states that they &#34;plan to explore more areas of strategic cooperation with Tesla in the future.&#34; Musk firmly controls voting rights; compensation is linked to Mars colonization. The prospectus fully discloses SpaceX's equity structure and governance structure for the first time. Musk holds 849.5 million Class A shares and 5.57 billion Class B shares (10 votes per share), giving him a total of 85% of the company's voting rights, ensuring his absolute control over the company even after the IPO. Apart from Musk, no individual or institution holds more than 5% of the shares. Valor Entities, a private equity firm, holds 7.3% of the common stock, making it the second-largest shareholder. Musk's latest compensation package at SpaceX consists of two astronomical stock option deals with no time limit, directly linked to Mars and AI infrastructure: The Mars colonization plan includes 1 billion Class B shares (approximately $583 billion). The unlocking conditions are: SpaceX's market capitalization reaches $7.5 trillion and a permanent colony of at least 1 million inhabitants is established on Mars. The Orbital Data Center Plan includes 302 million Class B shares (approximately $154 billion). The unlocking conditions are: the company's market capitalization reaches $6.6 trillion and an orbital data center operating in space providing over 100 watts (TW) of computing power annually. Aside from his base salary of $54,000, Musk will receive nothing if the aforementioned technological and market capitalization milestones are not achieved. The company's board members were also publicly announced for the first time. In addition to Elon Musk serving as chairman, President and Chief Operating Officer Gwynne Shotwell, Chief Financial Officer Bret Johnsen, and several venture capitalists and private equity executives have joined the board. Google executive Donald Harrison is also among them. SpaceX's financial situation is particularly unique among mega-cap tech companies planning to go public. In 2025, the company is projected to generate approximately $18.7 billion in revenue, but will suffer a net loss of $4.9 billion. In contrast, Meta, with a similar valuation, had revenue more than 11 times that of SpaceX last year and a net profit of $60 billion. If the IPO valuation ultimately falls above $1.5 trillion, SpaceX's price-to-sales ratio will reach approximately 80, while the overall price-to-sales ratio of the top 15 companies by market capitalization in the United States is only about 7. This pricing logic is quite similar to that of Tesla, another company under Musk's umbrella. Tesla's profits in 2025 are extremely thin due to its massive investments in AI, humanoid robots, and Robotaxi, yet it still trades at a trailing P/E ratio of nearly 400. Analysts believe that investors betting on SpaceX or Tesla are essentially convinced that Musk can convert his current massive investments into enormous value in the distant future.</span></span></p></div></div></div>

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<p>SpaceX has filed its IPO prospectus, revealing $4.9 billion in losses and that Elon Musk will control 85% of voting rights post-IPO. The company expects $18.7 billion in revenue for 2025, driven by its Starlink service, which is currently profitable. However, significant losses are reported in the AI segment, with capital expenditures heavily impacting cash flow. SpaceX aims to use IPO proceeds to repay a $20 billion loan and expand its AI infrastructure and satellite constellation.</p>

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SpaceX IPO prospectus revealed: $4.9 billion in losses, Musk controls 85% of voting rights.