Financial documents released on Wednesday (20 May) ahead of SpaceX going public - in what is expected to be Wall Street’s biggest ever listing - revealed the firm made operating losses of $1.94 billion, despite Elon Musk being tipped to become the world’s first trillionaire.
Of SpaceX’s three divisions, only Starlink, its satellite internet arm, was profitable in the first three months of the year, making an operating profit of $1.19 billion.
Even SpaceX’s $4.69 billion in first-quarter revenue was not enough to prevent the company from posting an overall loss.
Worst hit was SpaceX’s AI division, which recorded an operating loss of $2.47 billion in the first quarter alone, driven largely by Musk’s acquisition of social media and AI firm xAI.
Musk’s purchase of xAI accounted for 76% of SpaceX’s $10.1 billion in capital spending during the quarter.
The space firm could be valued at a record-breaking $1.75 trillion when it lists on the Nasdaq and Nasdaq Texas as early as mid-June, potentially making the 54-year-old Musk the world’s first trillionaire.
The projected trillionaire status reflects investor expectations of SpaceX’s future dominance rather than its present financial performance. Musk’s fortune is based on the paper value of his holdings, not cash profits generated today.
Investors are valuing SpaceX on expectations of future technological dominance rather than current earnings.
The company’s plans rely heavily on technology that has not yet been built, including proposals to operate solar-powered data centres in space, targeting a potential market worth $28.5 trillion, according to the filing.
The documents also reveal Musk’s iron grip on the company. Filings showed he will retain 85.1% of the combined voting power.
SpaceX will use a dual-class share structure that gives Class B shareholders 10 votes each, concentrating control among Musk and a small group of insiders, while Class A shares sold to public investors will carry one vote each.
The filings also show Musk can effectively only be removed from the company by himself.
However, the board has tied much of his compensation to ambitious targets, including establishing a permanent human colony on Mars and building space-based data centres.
The disclosure comes during a critical week for the rocket maker, which is preparing to launch a test flight of its next-generation Starship rocket on Thursday (21 May).
Russia has violated an energy ceasefire announced by U.S. President Donald Trump, Ukrainian leader Volodymyr Zelen...
Here's your AnewZ Daily Brief for 12 October 2026 with the top five natural disasters happening around the world. ...
One person was killed and nearly a dozen hurt in a new attack Riyadh's international airport on Sunday, Saudi ...
The explosion at King Khalid International Airport in Riyadh on Saturday afternoon killed at least 12 people and injured a further 309, according to Saudi Arabia’s Civil Aviation Authority. The airport remains closed until further notice.
Yemen's Houthis renewed warning to airlines, airport workers, and travellers against using Saudi airports, saying the warning should be taken seriously and that the kingdom “bore responsibility for failed interceptions”, a day after an attack on Riyadh's international airport that killed 12 people.
One person was killed and nearly a dozen hurt in a new attack Riyadh's international airport on Sunday, Saudi authorities reported, a day after a strike claimed by Yemen's Houthis that killed 13 people and wounded more than 300.
The Houthi movement has escalated their attacks on Saudi Arabia, targeting the airport in Riyadh and other cities, killing more than a dozen people.
Ukraine is ready to stop attacks on Russian oil refineries if Moscow also halts strikes on Ukrainian energy infrastructure, President Volodymyr Zelenskyy said on Sunday.
Russia has violated an energy ceasefire announced by U.S. President Donald Trump, Ukrainian leader Volodymyr Zelenskyy said on Monday, urging Washington to step in to ensure that Moscow abided by the terms of the putative agreement.
Here's your AnewZ Daily Brief for 12 October 2026 with the top five natural disasters happening around the world.
The Houthi movement has escalated their attacks on Saudi Arabia, targeting the airport in Riyadh and other cities, killing more than a dozen people.
Ukrainian President Volodymyr Zelenskyy said on Monday that Ukraine is ready to respect the energy ceasefire announced by U.S. President Donald Trump, but only if Russia does the same, saying Moscow has already violated the agreement.
China has announced sanctions against Belize’s foreign minister and Paraguay’s communications minister over their countries’ diplomatic ties with Taiwan. The move comes as Beijing continues to pressure the few remaining nations that maintain formal diplomatic relations with Taipei.
You can download the AnewZ application from Play Store and the App Store.
What is your opinion on this topic?
Leave the first comment