- SpaceX claimed a Total Addressable Market (TAM) of $28.5 trillion in its prospectus.
- The company is set to launch its public issue soon.
- SpaceX's market claims lean heavily on cloud and infrastructure language familiar to capital market
Elon Musk's SpaceX has been the centre of attention on Wall Street ever since news of the company's impending public issue broke. Set to trade under the ticker 'SPCX' in the US, SpaceX put out its prospectus on Wednesday. A share sale potentially as early as June 11 is possible, as per Reuters.
The space exploration company will reportedly target a $1.75 trillion valuation and plans to raise around $75 billion, as per Tech Crunch, making it the largest initial public offering ever (IPO).
This puts SpaceX far ahead of Saudi oil giant Aramco, which set the record for the world's biggest IPO when it marked its debut on Riyadh's stock exchange with a $1.7 trillion valuation.
In its prospectus, SpaceX said it had the largest market in human history, claiming a Total Addressable Market (TAM) of $28.5 trillion. This includes $370 billion from space-enabled solutions, $26.5 trillion in AI, $1.6 trillion in connectivity with $870 billion in Starlink Broadband and $740 billion in Starlink Mobile, $760 billion in consumer subscriptions, $22.7 trillion in enterprise applications and $600 billion in digital advertising.
According to Moonshots host Peter Diamandis, SpaceX is pitching itself as an infrastructure provider underneath the AI economy rather than a foundation-model firm that is competing directly with OpenAI or Anthropic.
The episode said that Anthropic is reportedly paying $15 billion to SpaceX annually for access to Colossus 1 and Colossus 2 supercomputer infrastructure. This also provides an explanation for why SpaceX's prospectus leans heavily on cloud and infrastructure language that is familiar to capital markets.
The panel on the episode also pointed on launch scale as a big point for the success of SpaceX's IPO. Falcon 9 launches once every 2 and a half days, but the long-term goal is to eventually bring the number to a launch every hour. This is what underlies many of the larger TAM projections of the prospectus.
The episode also spoke of claims of a merger between SpaceX and Tesla, with roughly 34.5% probability of the deal happening before the year-end.
While SpaceX's IPO has been generating quite a buzz, few of the biggest public issues in recent years have paid off for investors who bought shares when the deals came to market, as per a Reuters analysis.
The outlet analysed 50 IPOs with the highest valuations in the past five years to find that investors would have been better off purchasing an S&P 500 index fund about three-quarters of the time. The analysis shows the difficulty of finding bargains among firms whose valuations have often jumped long before the stock's debut.
