SpaceX reportedly generated approximately $8 billion in profit on revenues between $15 billion and $16 billion last year, according to sources familiar with the company’s financials. This insight into the financial health of Elon Musk’s space company comes as it is expected to launch an initial public offering (IPO) later this year. SpaceX is a satellite and rocket company providing space transportation, satellite internet services, and more. The company aims to revolutionise space technology, with the ultimate goal of enabling humans to live on other planets.
These previously unreported financials have led some banks to estimate SpaceX could raise over $50 billion at a valuation exceeding $1.5 trillion. Reuters recently reported that SpaceX is in discussions with Musk’s artificial intelligence company, xAI, regarding a potential merger ahead of the IPO. The profit figure represents earnings before interest, taxes, depreciation, and amortisation (EBITDA), a key measure of operating performance. Starlink, Musk’s satellite-based internet system, is the primary revenue driver, accounting for roughly 50% to 80% of the company’s total revenue.
Since 2019, SpaceX has rapidly launched 9,500 Starlink satellites, making it the world’s largest satellite operator with over 9 million broadband internet service users. Revenue from Starlink, along with government contracts associated with Starlink and the military-grade satellite network Starshield, has been instrumental in funding the development of SpaceX’s next-generation Starship rocket. Musk intends to utilise Starship to launch more powerful Starlink satellites into orbit.
Last year, SpaceX invested $19 billion in wireless spectrum rights from EchoStar as it expands Starlink into the direct-to-device market. This expansion would allow mobile phones to connect directly to Starlink satellites without requiring a Starlink user terminal. The company is reportedly planning what could be the world’s largest IPO, potentially coinciding with Musk’s 55th birthday on June 28. Musk anticipates that Starship, which has undergone 11 test launches since 2023, will begin launching payloads into space this year, eventually supporting space-based AI data centres.
