SpaceX, the private space exploration company led by Elon Musk, is experiencing significant growth and could launch an initial public offering (IPO) as early as next year or in 2026, according to Vijay Marolia, chief investment officer of Regal Point Capital.
Regal, which focuses on private equity and hedge funds, holds SpaceX shares through Baron's Focused Growth Fund BFGFX.
As a pioneer of reusable rocket technology, SpaceX aims to reduce costs and transform the space industry. It has established a launch frequency and is expected to play a critical role in upcoming lunar and Mars missions.
IPO after US elections
Marolia suggests that SpaceX could delay its IPO decision until after the 2024 election, with 2025 being a likely time for a decision depending on the political climate.
“I would say 2025 is the right choice. Then we will know who will rule the country in the next four years. … I think if we know who's going to be in the White House, then that spreadsheet is ready to be sent out,” Mariola told MarketWatch.
There have been rumors about a possible spin-off of Starlink, SpaceX's satellite internet constellation. However, Musk has apparently ruled out a Starlink spinoff for this year, suggesting it could occur after the IPO, perhaps closer to the Mars mission.
Mission to Mars
Last year, Musk predicted that SpaceX could achieve an unmanned landing on Mars by 2027. Marolia also noted that SpaceX's Starshield, a secure satellite network for governments, could be a candidate for an IPO or private spinoff, although he remains cautious in predicting results due to geopolitical and regulatory uncertainties.
SpaceX is reportedly seeking a $150 billion valuation through a new stock sale, according to The Wall Street Journal. The company recently initiated 2024 activities with the launch of Starlink satellites, including the first batch to provide direct-to-cell services. This launch continues SpaceX's busy schedule, following a record 96 Falcon launches in 2023.
Amid these developments, SpaceX is facing a complaint from the National Labor Relations Board over allegations of wrongful dismissal of employees who raised workplace concerns. SpaceX has not yet responded to these allegations.
SpaceX is currently valued at around $175 billion on the private market.
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