Elon Musk Said He Wouldn’t Take SpaceX Public — Two Things That Changed His Mind

Elon Musk has reversed his long-held stance against taking SpaceX public, announcing plans for an initial public offering (IPO) after years of insisting the company would remain private. Musk’s reluctance stemmed from his difficult experiences with Tesla as a public company, where the pressure of quarterly earnings reports and stock market scrutiny took a significant toll on his mental health. He previously stated that SpaceX would not go public until it had a stable, predictable revenue stream and even suggested in 2013 that the company wouldn’t list until it had established a transport system to Mars. The primary driver behind the decision to pursue an IPO appears to be SpaceX’s urgent need for capital. Despite turning a profit in 2024, the company has since suffered substantial losses, including a $4.9 billion deficit in 2025 and a further $4.3 billion loss in the first quarter of 2026. These losses have been exacerbated by heavy investment in new technologies such as artificial intelligence and the integration of Musk’s xAI venture, which has added to the company’s financial strain. SpaceX’s cumulative deficit now stands at around $41 billion, with revenues rising but not enough to offset the rapid cash burn. Musk will maintain significant control over SpaceX post-IPO, retaining approximately 85% of voting rights, which suggests he intends to steer the company’s long-term vision despite public ownership. The financial challenges facing SpaceX echo Tesla’s early struggles, when the electric carmaker was days away from bankruptcy before scaling production successfully. The IPO is seen as a crucial lifeline to sustain SpaceX’s ambitious projects, including the development of its next-generation giant rocket and expansion of the Starlink satellite internet business. Reactions to the IPO plans highlight both optimism and caution. Some analysts note that while the IPO could provide essential funding, it may only cover a fraction of the capital required to realise SpaceX’s extensive business plans. The company’s enormous debt load and ongoing losses raise questions about its financial sustainability, though the potential for SpaceX to become a highly valued “meme stock” akin to Tesla remains a possibility. The coming months will be critical in determining whether the public markets will support Musk’s vision or subject SpaceX to the intense scrutiny that previously deterred him.