Musk was responding to a media report which proposed that SpaceX could go public via a merger with telecommunications company Echostar instead of pursuing a conventional initial public offering.
- The speculations come on the heels of reports that SpaceX is eyeing an IPO as early as next year.
- Bloomberg reported that SpaceX is moving ahead with plans for an IPO and targeting a valuation of about $1.5 billion in what could be the largest IPO of all time.
- SpaceX’s current valuation is around $800 billion, overtaking ChatGPT owner OpenAI’s $500 billion.
SpaceX CEO Elon Musk on Wednesday dismissed ideas of the rocket manufacturer merging with a publicly held company in the attempt to trade on a stock exchange.
“There is no reason to cut corners,” Musk said in a post on X. He was responding to a report from Barron’s which proposed that Musk’s SpaceX could go public via a merger with telecommunications company Echostar instead of pursuing a conventional initial public offering.
The report highlighted several reasons for the proposition, including Echostar and SpaceX’s past business transactions and EchoStar’s holding in SpaceX stock.
SpaceX IPO
The speculations come on the heels of reports that SpaceX is eyeing an IPO as early as next year.
Earlier this month, Bloomberg reported that SpaceX is moving ahead with plans for an IPO and targeting a valuation of about $1.5 billion in what could be the largest IPO of all time. Bloomberg also noted that the timing of the IPO is uncertain and the company could choose to delay or abandon the plan altogether.
Reuters later reported that Morgan Stanley is emerging as a leading contender for a key role in SpaceX’s IPO. Goldman Sachs and JPMorgan are also vying for the role of the "lead left" underwriting position, sources told Reuters.
Rocket Manufacturer's Current Valuation
SpaceX is currently one of the world’s largest privately held players. Its Starlink segment operates the world’s largest broadband satellite network in low-earth orbit while its Falcon 9 rocket shepherds government and private players to space and back.
The company’s current valuation is around $800 billion, overtaking ChatGPT owner OpenAI’s $500 billion. The new valuation was established through private share sales earlier this month and exceeds the $400 billion value it fetched in a secondary share sale in July.
On Stocktwits, retail sentiment around SPACEX stayed within the 'bullish' territory while message volume remained at 'high' levels.
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