How Elon Musk's ‘lifelong ambition’ may be at risk by his own company SpaceX

Elon Musk has had a ‘lifelong ambition’ to send humans to Mars but the company’s potential IPO in 2026 may dent the Tesla CEO’s goal. Analysts hint that a potential blockbuster IPO for SpaceX, possibly valued at over $1 trillion, may steer the company to focus on its revenue-generating parts rather than aiming to send people to the Red Planet. SpaceX is reportedly targeting a public listing next year and may raise more than $25 billion, ranking it among history’s largest IPOs.

Elon Musk’s Mars quest are up against shareholder returns

According to a report by news agency Reuters, analysts suggest that in the wake of Musk’s dedication to sending humans to Mars, which he has always maintained was his “lifelong ambition,” future shareholders must accept the company's commitment to high-risk ventures.


“SpaceX has always been an R&D-heavy company and investors can sour if they feel they are not being rewarded for being investors. So, that can be hard. The investors of tomorrow will have to accept that,” Caleb Henry, an analyst at Quilty Analytics, was quoted as saying.

SpaceX President Gwynne Shotwell previously stated in 2018 that the company would not go public until it was flying regularly to Mars, a goal that is yet to be achieved. Musk has recently hinted at an IPO coming soon, and has said SpaceX might launch an uncrewed Starship to Mars next year.

According to Justus Parmar, CEO of Fortuna Investments, a firm invested in SpaceX, the IPO will follow Starship successfully reaching Mars, which would alleviate a major risk factor.

“He is taking a shot at sending this rocket to Mars… If that doesn’t work, that’s going to be very bad for the stock … (but as a) private (company), it’s not going to make a difference, there is no fluctuation in the stock,” Parmar said.

Meanwhile, Abhi Tripathi, a former SpaceX director, suggested that rocket failures would likely be acceptable to investors because those risks “dwarf in comparison to the revenue generated by Starlink”.