The SpaceX IPO is right here, and it’s extra than simply an historical public providing that might make Elon Musk the arena’s first trillionaire. It additionally unearths extra techniques wherein Elon Musk’s firms engage and overlap with every different, shuffling cash round in techniques which are regularly tricky to stay observe of.
That is glaring in techniques which are each obtrusive and no more so. A CTRL-F seek for “Tesla” yields 87 effects, xAI is discussed 356 occasions, and X 267 occasions. Even the Dull Corporate (7 occasions) and Neuralink (3) get a couple of mentions. Right through its 330 pages of rocket launches and interplanetary needs, you’ll hint the community of the way wherein Musk’s firms maintain every different.
It’s additionally glaring within the techniques Musk’s firms are shareholders in different Musk firms, additional intertwining their fates within the procedure. In line with the Shape S-1 submitting, Tesla owns just about 19 million stocks of SpaceX’s Elegance A not unusual inventory, which is not up to 1 p.c of the entire exceptional inventory. Tesla’s stake in xAI was once transformed to SpaceX stocks after Elon Musk merged his AI corporate along with his area corporate in February.
The submitting additionally unearths SpaceX purchased $131 million price of Cybertrucks “at producer’s prompt retail worth from Tesla.” A Bloomberg file previous this 12 months prompt that SpaceX purchased 1,279 Cybertrucks within the fourth quarter of 2025, however the IPO suggests it has most definitely received a couple of greater than that. As Electrek notes, with out those purchases, Cybertruck registration numbers most probably would have long past down 12 months over 12 months.
Tesla’s Megapacks, the corporate’s large desk bound garage batteries, are used to stabilize SpaceX’s Colossus I and II information facilities in Memphis, TN, throughout top call for. The rocket corporate bought $697 million price of Megapacks from Tesla in 2024 and 2025.
SpaceX’s dating with Musk’s Dull Corporate is a lot more old fashioned compared. The tunneling challenge has paid about $1.2 million in place of business rentals to SpaceX. And SpaceX spent about $1 million for the Dull Corporate to dig a tunnel at its headquarters in Bastrop, Texas.
SpaceX was once valued at $1.25 trillion previous this 12 months after merging with xAI, Musk’s AI corporate that still owns X, previously Twitter. The tie-up manner traders can be purchasing in at a traditionally top worth — however Musk mixed the firms at nice value to himself, and in addition SpaceX. The submitting confirmed that the rocket corporate directed about 60 p.c of its capital spending in 2025 towards xAI, or about $20 billion. However as TechCrunch notes, xAI misplaced billions of bucks final 12 months on income that grew through best 22 p.c 12 months over 12 months.
When going public, firms are required to record their chance elements, beneath the belief that traders must learn about the entire skeletons within the closet prior to striking their cash down. For SpaceX, the most important chance may be the most important asset: Elon Musk.
For SpaceX, the most important chance may be the most important asset: Elon Musk.
Whilst any corporate, particularly one as advanced as SpaceX, could be anticipated to incorporate a protracted record of chance elements in its S-1, SpaceX’s is exclusive in that it comprises its personal CEO. The submitting explicitly states that SpaceX is “extremely dependent at the persisted products and services of Mr. Musk,” noting that his management, imaginative and prescient, and technical experience are essential to the corporate’s long run.
Like different Musk-owned firms, SpaceX recognizes that Musk isn’t all the time one hundred pc excited about SpaceX. And it admits that Musk’s intersecting companies would possibly finally end up cannibalizing every different somehow. Conflicts may stand up. And in the event that they do, Musk isn’t “limited” from doing one thing that without delay competes along with his different firms, together with SpaceX.
Conflicts of passion may stand up someday between us, at the one hand, and Mr. Musk and entities owned through or affiliated with him, however, relating to amongst different issues, trade transactions, possible aggressive trade actions or different alternatives…. Moreover, Mr. Musk and different companies owned through or affiliated with him would possibly now, or someday, without delay or not directly, compete with us for funding or trade alternatives.
The S-1 is going directly to enumerate the techniques wherein Musk’s intensive entanglements may lead to monetary loss for SpaceX. The corporate is totally depending on his management, and but may additionally incur large losses because of stated management. (See: Tesla in 2025.)
As an example, Mr. Musk these days serves as Technoking and Leader Govt Officer of Tesla and is interested in different rising era ventures, together with Neuralink and The Dull Corporate. Mr. Musk has additionally up to now served as Senior Guide to the President of the US. This kind of loss or decreased involvement in our trade may lead to a subject material adversarial impact on our trade, monetary situation, result of operations, and long run possibilities.
The pull between chance and praise is a operating theme all the way through the submitting.
We, Mr. Musk, and different firms Mr. Musk is affiliated with steadily obtain an immense quantity of media consideration. The movements and statements of Mr. Musk and his affiliated ventures, whether or not or indirectly when it comes to us, would possibly draw vital public consideration and scrutiny to us and may doubtlessly have a good or destructive affect on our trade, relationships with shoppers and regulators, or inventory worth.
Those don’t seem to be statements you to find for your moderate S-1 submitting, however SpaceX isn’t your standard IPO. Musk stands to make billions if SpaceX establishes a “everlasting” colony on Mars with “no less than” 1,000,000 population. He’s additionally a shit magnet that might do severe harm to SpaceX’s recognition. Musk’s firms do trade with and are deeply entangled with every different in techniques laid naked through the submitting. They purchase every different’s stuff, compete with every different for RAM, AI chips, and different extremely precious parts which are an increasing number of briefly provide.
From time to time, his shareholders chase away. In 2024, a number of Tesla shareholders sued Musk over claims he was once knowingly diverting ability and sources clear of the corporate and directing it towards, xAI. That lawsuit continues to be pending.
