Al Root
Tesla investors got an early Christmas present: a reason to dream about what might be coming in the new year.
Tuesday, Bloomberg reported that Elon Musk's space technology company SpaceX might be headed for a 2026 initial public offering, raising up to $30 billion in the process. SpaceX didn't immediately respond to a request for comment.
SpaceX is privately held, but it is already the most valuable aerospace and defense company in the world, worth some $400 billion. SpaceX was reported to be seeking an $800 billion valuation this past week, but Musk seemed to downplay the possibility, saying in part that SpaceX is already cash-flow positive. It doesn't have a pressing need to raise cash by selling stock.
That is a was a disappointment to many investors who would like to own a piece of the company. The appeal is clear: It accounts for more than half of all global orbital launches and has a space-based broadband business, Starlink, with more than 8 million subscribers.
A SpaceX IPO would also fuel speculation that Musk could somehow combine his far-flung tech empire under one roof. Tesla shareholders recently voted in favor of a shareholder proposal that would authorize a Tesla investment in Musk's AI company xAI.
The vote was nonbinding, and there were a lot of shareholders who abstained from the vote.
Tesla investing in either xAI or a SpaceX IPO could be one step on the path to a larger X Corp.
"We would be shocked if Tesla does not take a stake in SpaceX as part of its process," says Wedbush analyst Dan Ives. He rates Tesla stock at Buy and has a $600 price target for shares. Ives believes that Tesla's AI efforts, which include robotaxis and robots, will lead to significant earnings growth down the road.
It is far too early to say what Musk's plans are, and his intentions could change. But investors can still dream.
Shares of EchoStar, which owns SpaceX stock valued at $8.5 billion in September, jumped $10 in late trading on Tuesday, closing at $93.54, up 6%. Shares are up 25% over the past week.
Write to Al Root at allen.root@dowjones.com
This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
Al Root
Tesla investors got an early Christmas present: a reason to dream about what might be coming in the new year.
Tuesday, Bloomberg reported that Elon Musk's space technology company SpaceX might be headed for a 2026 initial public offering, raising up to $30 billion in the process. SpaceX didn't respond to a request for comment.
SpaceX is privately held, but it is already the most valuable aerospace and defense company in the world, worth some $400 billion. SpaceX was reported to be seeking an $800 billion valuation this past week, but Musk seemed to downplay the possibility, saying in part that SpaceX is already cash-flow positive. It doesn't have a pressing need to raise cash by selling stock.
That is a was a disappointment to many investors who would like to own a piece of the company. The appeal is clear: It accounts for more than half of all global orbital launches and has a space-based broadband business, Starlink, with more than 8 million subscribers.
A SpaceX IPO would also fuel speculation that Musk could somehow combine his far-flung tech empire under one roof. Tesla shareholders recently voted in favor of a shareholder proposal that would authorize a Tesla investment in Musk's AI company xAI.
The vote was nonbinding, and there were a lot of shareholders who abstained from the vote.
Tesla investing in either xAI or a SpaceX IPO could be one step on the path to a larger X Corp.
"We would be shocked if Tesla does not take a stake in SpaceX as part of its process," says Wedbush analyst Dan Ives. He rates Tesla stock at Buy and has a $600 price target for shares. Ives believes that Tesla's AI efforts, which include robotaxis and robots, will lead to significant earnings growth down the road.
It is far too early to say what Musk's plans are, and his intentions could change. But investors can still dream.
Shares of EchoStar, which owns SpaceX stock valued at $8.5 billion in September, jumped $10 in late trading on Tuesday, closing at $93.54, up 6%. Shares are up 25% over the past week.
EchoStar stock was up another 4.8% in premarket trading at $98.02, while S&P 500 and Dow Jones Industrial Average futures were down less than 0.1%.
Write to Al Root at allen.root@dowjones.com
This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
December 10, 2025 06:59 ET (11:59 GMT)
Copyright (c) 2025 Dow Jones & Company, Inc.
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