SpaceX, founded by billionaire Elon Musk, has reportedly adjusted its IPO valuation target to at least $1.8 trillion, from a previously estimated $2 trillion valuation.

The firm is lowering its valuation based on consultations with advisors, investors and feedback from other stakeholders, as per a Bloomberg report on Friday.

Discussions are underway, and the firm could decide to increase its valuation target later, the report stated.

SpaceX is likely to begin formal marketing of the IPO on June 4, and the final IPO price is expected to be set on June 11. However, the timeline can be subject to delays, according to Bloomberg.

SpaceX did not immediately respond to Benzinga’s request for comments.

Debate Around Valuation Grows

The valuation of SpaceX has been a contentious topic among investors and analysts. A previously floated $2 trillion estimate would, if realized, mark the largest IPO in history. According to a research note from Tema ETFs, the Elon Musk firm should not just be seen as a rocket manufacturer, but as “the infrastructure layer for a future space economy.” This includes AI data capacity, satellite dominance and ultimately new space-enabled industries.

According to Tema CIO Yuri Khodjamirian, Starlink already “appears capable of justifying” much of SpaceX’s $2 trillion valuation, citing revenue estimates of nearly $11.4 billion and an EBITDA of $7.2 billion in 2025 from around 9 million subscribers.

In February, the deal between SpaceX-xAI, designed as a triangular merger to minimize debt exposure, alone resulted in a $1.25 trillion company 

That being said, the high valuation also triggers the likelihood of top stock market indices to include SpaceX shares on a fast track basis. Freedom Capital Markets Chief Market Strategist Jay Woods argues that the space firm should not get a “fast pass” or “express ticket” for inclusion in the S&P 500 or Nasdaq 100 unless it meets the profitability criteria, float and publicly traded timeframe requirement of 12 months.

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