Elon Musk's SpaceX (NASDAQ: SPCX) last week issued its prospectus for an initial public offering (IPO) of shares, which would cement Mr Musk's status as the richest person on Earth and value the company at up to US$2 trillion.
The prospectus for the first time sheds light on the financials of the company's three divisions – the SpaceX rocket division, the Starlink satellite internet division, and the artificial intelligence division.
Image source: Getty Images
Lofty ambitions
Of the three, only Starlink turns a profit at the moment, but early on in the prospectus, it is clear that what you are buying into is as much about a very optimistic view of the future – and the future of the company – based around interplanetary travel, as it is about financial returns.
Naturally, these are meant to flow as the company achieves its mission, which it sets out early on, as such:
Our mission is to build the systems and technologies necessary to make life multiplanetary, to understand the true nature of the universe, and to extend the light of consciousness to the stars. To do this, we have formed the most ambitious, vertically integrated innovation engine on (and off) Earth with unmatched capabilities to rapidly manufacture and launch space-based communications that connect the world, to harness the Sun to power a truth-seeking artificial intelligence that advances scientific discovery, and ultimately to build a base on the Moon and cities on other planets.
SpaceX says, "We believe that space represents the largest economic frontier in human history'', and suggests that they will be building AI infrastructure in space, powered by the "virtually limitless" power of the sun, for the benefit of mankind.
While the company's ambitions are lofty, it's currently still burning money, making a US$2.59 billion loss on revenue of US$18.7 billion in 2025.
For the first three months of 2026, the Space division lost US$662 million, the AI division lost US$2.47 billion, and the connectivity division made a profit of US$1.19 billion.
So, at this point, investors will be very much buying into a growth story, rather than a profitable business.
How to buy into the vision
If this is something that you find compelling, the good news is that Australian brokers are likely to be able to offer shares in the SpaceX IPO.
As the prospectus says:
The public offering in Australia will be made pursuant to a separate prospectus which complies with the requirements of the Corporations Act and will be lodged with the Australian Securities and Investments Commission.
Broker CommSec has written to its customers this week, saying the IPO is "expected" to include an Australian retail offer and that it will be the lead Australian retail broker for the IPO.
CommSec said the shares will not be listed on the ASX, and its customers will need an international shares account.
It will also be possible for Australians with an international trading account to buy and sell shares once trading begins on the NASDAQ exchange, expected around June 12.
