SpaceX is preparing for a landmark initial public offering (IPO) in June 2026, targeting a valuation of $1.75 trillion, which would make it the largest IPO in history. However, a regulatory filing reveals that the company is adopting Texas anti-takeover measures and a dual-class share structure to consolidate power under CEO Elon Musk, raising red flags among corporate governance experts.
The S-1 filing, seen by Reuters, outlines provisions under Texas corporate law designed to deter hostile takeovers and activist investors. The filing states that these provisions could complicate "acquisitions of us by means of a tender offer, a proxy contest or otherwise, or removal of our incumbent officers and directors." The dual-class structure grants Musk and insiders super-voting shares with 10 votes each, compared to a single vote for public investors, leaving shareholders with limited influence.
This move mirrors Musk's earlier decision to reincorporate Tesla in Texas after a Delaware court voided his $56 billion pay package. Analysts warn that such governance constraints could make U.S. equities less attractive to institutional investors accustomed to Delaware's accountability framework.
Meanwhile, SpaceX's financials show signs of strain. Private market research firm Sacra estimates revenue growth slowed to 18% in 2025, down from 51% in 2024 and 89% in 2023. The Information reports that SpaceX lost $5 billion in 2025, largely tied to AI spending after acquiring xAI for $250 billion in February 2026. The high retail investor allocation of 30% for the IPO—far above the typical 5-10%—has also raised concerns about potential meme-stock-like volatility.
In contrast, Rocket Lab (RKLB) is gaining traction as a smaller but growing competitor. On April 22, 2026, Rocket Lab successfully launched eight satellites for Japan's space agency JAXA—its second dedicated JAXA mission and eighth launch of the year. CEO Peter Beck called the Electron rocket "the preferred small launcher for national space agencies." However, Rocket Lab carries a $49 billion market cap and a price-to-sales ratio of 74, indicating it is already priced for perfection. The company's next major catalyst is the Neutron rocket, expected later in 2026.
