SpaceX has set its IPO pricing at $135 as the company nears a historical public listing that could break records. Wedbush analyst Dan Ives calls the public listing a "watershed moment" and shares his take on the IPO.
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Ives on SpaceX IPO
SpaceX plans to raise $75 billion with the sale of 555.6 million shares at $135. The IPO would value the company at $1.75 trillion, in line with past reports.
The listing will be made up of new shares, with existing shareholders such as SpaceX CEO Elon Musk having to hold their shares before selling.
"This listing represents the first major test for public markets after years of muted IPO activity, with SpaceX paving the way for AI giants Anthropic and OpenAI to follow soon after," Ives said.
The analyst said IPO proceeds will be used for the expansion of the company's AI efforts and to grow the Starlink satellite network, along with new ventures like solar-powered data centers in space.
"The company has laid out an addressable market opportunity of $28.5 trillion."
The addressable market covers space, connectivity, Starlink broadband, Starlink mobile and AI.
Ives Sees Tesla, SpaceX Merger Likely
While SpaceX is expected to hit the public markets as a pure-play on space and AI, the company could merge with another Musk-related company in the future.
Ives has put the odds of a merger between SpaceX and Tesla Inc (NASDAQ:TSLA) at 80% or higher in recent comments.
In the new investor note, Ives keeps that prediction in place.
"We continue to believe that SpaceX and Tesla will eventually merge (80%+ chance in our view) into one company in 2027 with the groundwork already in place for both operations to become one organization," Ives said.
The analyst said the companies are connected well, and Tesla already has a stake in SpaceX.
"Musk wants to own and control more of the AI ecosystem and step by step, the holy grail could be combining SpaceX and Tesla in some way."
Ives said both Tesla and SpaceX are "disruptive tech stalwarts looking to lead the AI Revolution in this next chapter for the market."
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