SpaceX Plans to Raise $75 Billion at $135 per Share
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Source: Yahoo Finance
- Funding Scale and Valuation: SpaceX plans to issue 555.6 million shares at $135 each, aiming to raise $75 billion and achieve a valuation of $1.77 trillion, exceeding $1.8 trillion on a fully diluted basis, highlighting its immense potential in the aerospace market.
- Funding Needs and Strategy: While this financing will provide financial flexibility, analyst AleXandra Merz noted that SpaceX anticipates needing up to $235 billion by 2030 to support Starlink expansion, Starship development, and AI infrastructure, indicating that this IPO is merely a part of its funding journey.
- Market Reaction and Investor Sentiment: Ahead of SpaceX's IPO, space stocks experienced significant declines, with AST SpaceMobile, Rocket Lab, and Virgin Galactic seeing drops of up to 15%, reflecting market concerns over SpaceX's valuation and a bearish sentiment towards the aerospace sector.
- Shorting Opportunities and Risks: Jefferies' absence from the SpaceX IPO underwriting may create opportunities for short trades, with analyst Tim Farrar reiterating the view that 'betting against space' is rational, as SpaceX faces a challenging year ahead to achieve Starlink's financial viability amidst negative cash flow.
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Analyst Views on ASTS
Wall Street analysts forecast ASTS stock price to fall
8 Analyst Rating
3 Buy
4 Hold
1 Sell
Hold
Current: 118.170
Low
43.00
Averages
91.68
High
137.00
Current: 118.170
Low
43.00
Averages
91.68
High
137.00
About ASTS
AST SpaceMobile, Inc. is engaged in building a global cellular broadband network in space to operate directly with standard, unmodified mobile devices based on its intellectual property (IP) and patent portfolio and designed for both commercial and government applications. The Company is engaged in designing and developing the constellation of BlueBird (BB) satellites and has planned a space-based Cellular Broadband network distributed through a constellation of low Earth orbit (LEO) satellites. Its SpaceMobile Service is being designed to provide high-speed cellular broadband services to end-users who are out of terrestrial cellular coverage using existing mobile devices. The Company intends to continue testing capabilities of the BW3 test satellite, including further testing with cellular service providers and the government. The Company has operations in India, Scotland, Spain, and Israel.
About the author

Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
- Stock Surge: AST SpaceMobile's shares jumped 53.5% last month, reflecting optimistic market sentiment about its future potential, especially ahead of the upcoming SpaceX IPO, with a staggering 389% increase over the past year.
- Market Positioning: Competing directly with Starlink in satellite internet, AST SpaceMobile aims to deliver high-speed internet directly to mobile devices through ultra-large array technology, eliminating the need for terminal devices, although it is still in the satellite deployment phase with minimal revenue.
- Financial Strength: With a cash balance of $3 billion at the end of the last quarter, AST SpaceMobile is well-positioned to continue advancing satellite construction and launch contracts, with projected revenues of $150 million to $200 million by 2026, primarily driven by U.S. government contracts and partnerships with global mobile carriers.
- Market Risks: Despite AST SpaceMobile's vast potential, its stock price already reflects expectations of success, with a current market cap of $46 billion, prompting caution among investors due to the uncertainties involved in building a satellite internet service, which could lead to disappointment in the coming years.
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- Massive Fundraising: SpaceX plans to issue 555.6 million shares at $135 each, aiming to raise $75 billion, which values the company at $1.77 trillion, exceeding $1.8 trillion on a fully diluted basis, highlighting its immense market potential in the space industry.
- Ongoing Capital Needs: While the IPO will provide financial flexibility, analyst AleXandra Merz notes that the company's capital requirements are projected to reach $235 billion by 2030, indicating that this fundraising is merely the first step in its funding journey.
- Market Weakness: Ahead of SpaceX's IPO, space stocks experienced significant declines, with shares of AST SpaceMobile, Rocket Lab, Virgin Galactic, and Redwire dropping by up to 15%, reflecting investor concerns over SpaceX's valuation and shifting market sentiment.
- Short Selling Opportunities: Jefferies' absence from the underwriting syndicate may create opportunities for short selling, as analyst Tim Farrar reiterated the view that 'betting against space' could be a rational approach in the current market environment.
See More
- Funding Scale and Valuation: SpaceX plans to issue 555.6 million shares at $135 each, aiming to raise $75 billion and achieve a valuation of $1.77 trillion, exceeding $1.8 trillion on a fully diluted basis, highlighting its immense potential in the aerospace market.
- Funding Needs and Strategy: While this financing will provide financial flexibility, analyst AleXandra Merz noted that SpaceX anticipates needing up to $235 billion by 2030 to support Starlink expansion, Starship development, and AI infrastructure, indicating that this IPO is merely a part of its funding journey.
- Market Reaction and Investor Sentiment: Ahead of SpaceX's IPO, space stocks experienced significant declines, with AST SpaceMobile, Rocket Lab, and Virgin Galactic seeing drops of up to 15%, reflecting market concerns over SpaceX's valuation and a bearish sentiment towards the aerospace sector.
- Shorting Opportunities and Risks: Jefferies' absence from the SpaceX IPO underwriting may create opportunities for short trades, with analyst Tim Farrar reiterating the view that 'betting against space' is rational, as SpaceX faces a challenging year ahead to achieve Starlink's financial viability amidst negative cash flow.
See More
- AST SpaceMobile Growth Potential: AST SpaceMobile aims for $150 million to $200 million in revenue for 2026, a significant increase from $70.9 million in 2025, indicating strong demand and potential profitability in the global telecom market.
- Intuitive Machines' Contract Advantage: Intuitive Machines secured lunar reconnaissance contracts with NASA, projecting 2026 revenues of $900 million to $1 billion, highlighting its critical role in space infrastructure and future growth potential.
- Rocket Lab's Performance Breakthrough: Rocket Lab achieved $200 million in revenue in Q1 2026, a 63.5% year-over-year increase, with a $2.2 billion backlog, demonstrating strong demand and sustained growth in the space launch market.
- Overall Industry Optimism: As the SpaceX IPO approaches, overall investment enthusiasm in the space sector is rising, expected to attract more capital inflow, boosting stock prices of related companies and accelerating industry development.
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- Insider Confidence Signal: AST SpaceMobile executives opted to retain shares following the vesting of restricted stock units (RSUs) on May 30, with CEO Abel Avellan holding onto 78.5 million Class A shares, signaling strong confidence in the company's future and boosting investor sentiment towards ASTS.
- Blue Origin Recovery Progress: Following the New Glenn launchpad explosion, Blue Origin's CEO reported that several critical infrastructures survived, including the propellant farm and liquid storage systems, with a return to flight expected by year-end, which is crucial for ASTS's future launch plans.
- Robust Launch Plans: AST SpaceMobile confirmed that BlueBird satellites 8, 9, and 10 have arrived at Cape Canaveral and entered final processing, with a Falcon 9 launch expected in mid-June, and the CEO stated the company remains on track to deploy 45 satellites this year, ensuring the execution of its multi-launch agreements.
- Impact of SpaceX IPO: Investors are closely watching SpaceX's anticipated IPO, which could value the company between $1.75 trillion and $1.8 trillion; despite some cooling market sentiment, the potential $28.5 trillion total addressable market for SpaceX still positively influences the broader space sector.
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- IPO Fundraising Target: SpaceX aims to raise $75 billion by selling 555.6 million shares at $135 each, implying a valuation between $1.75 trillion and $1.8 trillion, surpassing Saudi Aramco's $29.4 billion IPO in 2019, highlighting its immense potential in the space market.
- All-Primary Offering Structure: The IPO will be structured as an all-primary offering, ensuring all proceeds flow directly to SpaceX while existing shareholders are barred from selling shares during the IPO, which preserves the company's control and may facilitate rapid inclusion in the Nasdaq 100.
- Underwriting Fee Negotiations: SpaceX is negotiating underwriting fees below 0.75%, which, while lower than traditional levels, could still generate $500 million in fees for participating banks due to the massive size of the deal, showcasing its strong fundraising capability.
- Market Sentiment Volatility: Despite attracting investor interest, there are concerns about SpaceX's proposed valuation of $1.75 trillion to $1.8 trillion, with Morningstar suggesting it may be overvalued, indicating potential stock price pressure in the months following the IPO, prompting investors to carefully assess risks.
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