In its S-1 IPO prospectus released this week, SpaceX identified founder Elon Musk himself as a key risk factor for the company, while also detailing numerous related-party transactions between its various subsidiaries. According to the document, SpaceX purchased Cybertrucks worth $131 million from Tesla at their suggested retail prices. Both Colossus I and Colossus II — SpaceX’s two AI data centers located in Memphis, Tennessee — rely on Tesla’s Megapack energy storage systems for peak load management; total spending on these systems between 2024 and 2025 amounts to $697 million. Meanwhile, Tesla owns nearly 19 million Class A shares of SpaceX, and its original stake in xAI was converted into SpaceX shares following the merger of the two companies in February this year.
Throughout the prospectus, xAI is mentioned 356 times, X (formerly Twitter) 267 times, and Tesla 87 times; even The Boring Company (7 mentions) and Neuralink (3 mentions) appear in the text, underscoring how deeply intertwined Musk’s business empire truly is. Financially speaking, SpaceX anticipates $18.67 billion in annual revenue for 2025, though it will still incur an operating loss of $2.59 billion. In the first quarter alone, revenue hit $4.69 billion, yet operating losses reached $1.94 billion — figures widely attributed to integrating xAI into its operations. SpaceX aims to achieve a valuation of roughly $1.75 trillion via this IPO, which will employ a dual-class share structure; post-IPO, Musk will retain majority voting rights over Class B shares.