Musk Increased SpaceX Holdings by $1.4 Billion Last Year

On the 21st, US media revealed that American entrepreneur Elon Musk purchased $1.4 billion worth of stock from current and former employees working for him last year, increasing his stake in Space Exploration Technologies Corp (SpaceX).

On May 27, 2025, SpaceX’s next-generation heavy-lift launch vehicle "Starship" conducted its ninth test flight in Texas.

According to The Information magazine, a non-public draft of SpaceX’s IPO prospectus disclosed that this bulk stock purchase was conducted through a trust under Musk’s name.

Bloomberg previously reported that SpaceX is considering an initial public offering (IPO) as early as June, with a fundraising target of up to $50 billion. The Wall Street Journal also reported that SpaceX’s target valuation exceeds $1 trillion, potentially making it the largest IPO in the history of US stock markets.

According to Reuters, SpaceX secretly filed an IPO application in March. The company’s revenue last year was about $15 to $16 billion, with profits around $8 billion.

Additionally, according to a plan approved by SpaceX last month, if the company's valuation rises from $1.1 trillion to as much as $6.6 trillion and a data center is built in space, the company will award Musk an additional 60 million shares. These shares will be distributed to him in tranches for every $500 billion increase in SpaceX’s valuation.

SpaceX and Musk have yet to respond to these reports.

American media previously reported that SpaceX is seeking to accelerate the inclusion of its stock in major market indices after its IPO. Typically, companies must wait several months to a year after an IPO before they may be included in major indices such as the S&P 500 or Nasdaq 100. Once included, they can access capital from funds, particularly index funds.

The traditional waiting period before index inclusion is meant to ensure that the company has sufficient stability and liquidity to handle large-scale purchases by index funds. As part of its IPO plan, SpaceX hopes to shorten this waiting period to bring liquidity to shareholders sooner. The company’s advisors have been seeking to change index compilation policies so that SpaceX and other high-valuation companies can enter major indices more rapidly. (Wang Hongbin)