SpaceX employees report to work at the SpaceX Hawthorne facility on the day of their company’s IPO, in Hawthorne, California, June 12, 2026.
Mike Blake | Reuters
Elon MuskIt is EspaceX will need to achieve at least two of its three “moonshots” to justify its huge valuation, a former Tesla board member told CNBC on Friday.
Musk’s reusable rocket company is seeking to raise $75 billion, selling 555.6 million shares for $135 apiece, according to a deposit with the Securities and Exchange Commission. The deal values SpaceX at $1.77 trillion, making it the seventh most valuable U.S. company, ahead of Tesla.
Venture capitalist and former Tesla board member Steve Westly told CNBC’s “Squawk Box Europe” on Friday that the price of SpaceX’s impending IPO would be difficult to predict because its three main companies are “completely disparate.”
In addition to its space operations, Elon Musk’s company owns the Starlink satellite internet service, which accounts for the bulk of its revenue and is the only profitable unit. It also includes xAI, which Musk merged with SpaceX in February.
“SpaceX represents three lunar projects in one company, but I think they’re going to have to succeed at least two of those lunar projects to maintain that $2 trillion valuation,” said Westly, who also founded venture capital fund The Westly Group.
SpaceX achieved its goal of becoming the largest IPO on record.
The number of underlying companies could increase further, as speculation grows that Musk could eventually merge Tesla into SpaceX. CNBC reported in Mayciting people familiar with the matter, that Tesla and SpaceX already have a long list of shared resources, and Musk has discussed with colleagues the possibility of combining the companies.
Westly told CNBC’s Arjun Kharpal that a move to integrate Tesla into SpaceX is “absolutely likely.”
“It’s going to be a tricky issue. There will be a lot of governance issues, people will complain about it, but… I think there’s a good chance it will end up happening,” he added.
