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).
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The United States launched overnight strikes on military targets across Iran, as President Donald Trump warns of further attacks unless a peace deal is reached. Iran responded by targeting U.S. bases in the Gulf and announced the closure of the Strait of Hormuz.
Bill Gates has told members of Congress that he “did not fully understand the extent” of Jeffrey Epstein’s crimes during the period in which he associated with the late convicted sex offender while seeking support for his philanthropic work.
U.S. forces say they have completed strikes on Iranian military sites near the Strait of Hormuz. Iran responded with missile attacks on an American base in Jordan, marking a sharp escalation in tensions between the two sides.
Pope Leo visited Barcelona’s Sagrada Familia on Wednesday to inaugurate its newest geometric spire, making the modernist masterpiece by Antoni Gaudí the world’s tallest church.
Azerbaijan's Foreign Ministry says 19 citizens have been repatriated following a deadly drone attack on two cargo ships in the Sea of Azov on 5 June.
A Sudanese man has been arrested over a knife attack in Belfast that left a man seriously injured and prompted calls online for a protest after footage of the incident circulated widely on social media.
Iran and Israel said on Monday (8 June) they had halted attacks on each other following an appeal from U.S. President Donald Trump, as Axios reported that Trump had privately told Benjamin Netanyahu “be careful, or you will be on your own very soon”.
Ukraine's military said it struck a Russian "shadow fleet" tanker in the Black Sea as part of ongoing efforts to disrupt Moscow's energy and logistics networks. The move underscores Kyiv's focus on targeting maritime assets it says are used to bypass sanctions on Russian oil exports.
U.S. forces say they have completed strikes on Iranian military sites near the Strait of Hormuz. Iran responded with missile attacks on an American base in Jordan, marking a sharp escalation in tensions between the two sides.
Bill Gates has told members of Congress that he “did not fully understand the extent” of Jeffrey Epstein’s crimes during the period in which he associated with the late convicted sex offender while seeking support for his philanthropic work.
Pope Leo visited Barcelona’s Sagrada Familia on Wednesday to inaugurate its newest geometric spire, making the modernist masterpiece by Antoni Gaudí the world’s tallest church.
The European Union and South Korea on Wednesday signed a digital trade agreement aimed at simplifying cross-border digital transactions and strengthening economic ties. The deal was reached at their first summit in three years.
As global diplomatic dynamics continue to evolve, the European Union is reassessing its ability to respond effectively to major international developments, prompting renewed debate over defence coordination, foreign policy decision-making and institutional reform.
The FIFA World Cup 2026 is set to be one of a kind when it kicks off on 11 June, as it brings with it a slew of firsts ahead of co-hosts Mexico taking on South Africa in the opening match.
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