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 penultimate day of the World Urban Forum 13 in Baku will see Azerbaijan's Pavilion highlight post-construction efforts in Garabagh and East Zangezur, as well as host events on the future of Baku and architectural education.
A documentary produced by AnewZ highlighting the Azerbaijani city of Shaki and its living heritage was screened on 21 May during the 13th Session of the United Nations World Urban Forum (WUF13).
Activists from a Gaza-bound flotilla detained by Israel at sea have been released from prison and are expected to be deported to Türkiye, officials confirmed on Thursday.
Chinese President Xi Jinping may visit North Korea as early as next week, South Korea's Yonhap news agency reported late on Wednesday (21 May) quoting a senior government official.
Asian stocks surged on Thursday as some vessels resumed passage through the Strait of Hormuz, while forecast-beating results at Nvidia and a suspended workers' strike at Samsung Electronics lifted shares of chipmakers.
Day four of the World Urban Forum (WUF) in Baku brings a packed agenda on sustainable cities and the global housing crisis, with sessions on green housing, smart cities, public spaces and urban rights taking place on Wednesday (20 May) at Baku Olympic Stadium in Azerbaijan.
At least 21 people have been killed and thousands evacuated after torrential rain triggered flooding, landslides and transport disruption across southern and central China, with authorities warning that more heavy rainfall is expected along the Yangtze River.
The penultimate day of the World Urban Forum 13 in Baku will see Azerbaijan's Pavilion highlight post-construction efforts in Garabagh and East Zangezur, as well as host events on the future of Baku and architectural education.
Russia’s ambassador to the United Nations Vasily Nebenzya warned on Tuesday (19 May) that Moscow could retaliate against Baltic states if Ukraine launches military drones from that region. Latvia, the United States and Ukraine responded strongly during a UN Security Council meeting.
Activists from a Gaza-bound flotilla detained by Israel at sea have been released from prison and are expected to be deported to Türkiye, officials confirmed on Thursday.
NATO fighter jets were activated on Thursday (21 May) after at least one drone entered Latvian airspace, according to Latvia’s armed forces, marking the latest in a series of security incidents across the Baltic region linked to the war in Ukraine.
Russia pledged support for Cuba on Thursday after the U.S. indicted former Cuban president Raúl Castro on murder charges linked to the 1996 downing of exile planes, escalating tensions between Washington and Havana.
The European Union has moved closer to finalising a trade agreement with the United States in an effort to avoid a new tariff escalation threatened by President Donald Trump. The proposed deal is aimed at stabilising transatlantic trade ties amid mounting economic and political pressure.
Russia delivered nuclear munitions to field storage facilities in Belarus as part of major nuclear drills, the Russian Defence Ministry said on Thursday.
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