Musk plans to open 30% of SpaceX's IPO to retail investors: valuation could reach $1.75 trillion

Gate News reports that multiple media outlets have disclosed that Elon Musk is considering allocating up to 30% of shares to retail investors in SpaceX’s initial public offering (IPO), significantly higher than the typical 5% to 10% ratio seen in traditional IPOs. This design is viewed as a way to leverage its large fan base and individual investor group to provide more stable demand support for post-listing trading.

In terms of the underwriting structure, SpaceX is adopting a more customized arrangement. Bank of America will primarily target high-net-worth clients in the U.S., while Morgan Stanley will handle individual investor orders through its retail channels, and institutions like UBS and Citigroup will be responsible for international market distribution. The company has not adopted the traditional bank bidding mechanism but has divided functions among different institutions to enhance control over the issuance process.

The market widely expects that this IPO could reach a scale of up to $75 billion, with the company’s valuation approaching $1.75 trillion, likely placing it among the largest IPOs in history. Insiders say that SpaceX plans to begin investor roadshow communications in April 2026 and may have already prepared to submit confidential listing application documents.

While advancing its IPO, Musk is also making adjustments to its industrial system. Reports indicate that SpaceX has initiated layoffs and replaced some management after integrating with xAI, aiming to optimize its cost structure and improve profitability to align with public market financial expectations.

It is noteworthy that this IPO will focus on attracting long-term investors, including family offices and private capital that have been following SpaceX for a long time, while also leveraging the brand effect accumulated by Tesla and Starlink to increase retail participation. This model aims to reduce short-term trading volatility risks and enhance the stability of the shareholder structure.

Although the IPO timeline and final scale have not yet been fully determined, the high proportion of retail allocation and the refined division of underwriting work indicate that SpaceX is attempting to break the traditional path of technology companies going public. If this strategy is successful, it could set a precedent for the IPO models of large technology firms in the future.