SpaceX Posts $8 Billion Profit as IPO Plans Take Shape

Elon Musk’s space technology company SpaceX earned nearly USD 8 billion in profit last year, while its total revenue during the same period stood at an estimated USD 15 to 16 billion, according to Reuters.

Two sources familiar with the company’s financial results disclosed the information to Reuters. The data offers fresh insight into SpaceX’s financial strength at a time when the company is reportedly preparing to go public later this year.

Based on SpaceX’s latest financial position, some investment banks believe the company could raise more than USD 50 billion through an initial public offering (IPO), valuing the firm at over USD 1.5 trillion. These financial details of SpaceX had not been made public previously.

The report noted that the profit figures were calculated on an earnings-before-interest, tax, depreciation, and amortisation (EBITDA) basis. SpaceX’s satellite-based internet service, Starlink, is the company’s primary revenue driver, contributing an estimated 50 to 80 percent of total income. Since 2019, SpaceX has launched approximately 9,500 Starlink satellites, making it the world’s largest satellite operator. The service now has more than nine million subscribers worldwide.

Revenue from Starlink, along with income from related government and defence contracts, is being used to fund the development of SpaceX’s next-generation rocket, Starship. As part of its expansion into the direct-to-mobile satellite connectivity market, the company has already acquired wireless spectrum rights worth around USD 19 billion from EchoStar.

Sources further revealed that SpaceX is planning one of the world’s largest IPOs around June 28, close to Elon Musk’s 55th birthday. At the same time, discussions are reportedly underway regarding a potential merger with Musk’s other company, xAI, according to Reuters.

DBTech/BMT/OR