SpaceX's Record-Shattering $1.5T IPO Set to Mint Thousands of Millionaires From Engineer Ranks

Elon Musk's SpaceX is advancing plans for what could become the largest initial public offering in history, with thousands of engineers and employees standing to become overnight millionaires when shares hit the public markets.

The aerospace giant is targeting a mid-to-late 2026 listing at a valuation of approximately $1.5 trillion (£1.12 trillion), according to Bloomberg. The company aims to raise more than $30 billion (£22.4 billion), surpassing Saudi Aramco's $29 billion (£21.6 billion) record from 2019.

For SpaceX's workforce, many of whom accepted lower base salaries in exchange for equity compensation, the IPO represents a potential financial watershed moment. Engineers who joined years ago at modest share prices now hold restricted stock units (RSUs) and incentive stock options (ISOs) valued at current internal prices of approximately $420 (£314) per share, according to Bloomberg.

How Employees Stand to Cash In

SpaceX's compensation structure has long prioritised equity over cash. According to EP Wealth Advisors, a financial planning firm working with SpaceX employees, staff typically receive RSUs that vest over three to five years. Senior engineers often hold incentive stock options with varying exercise prices depending on their entry date.

The company's current secondary offering allows employees to sell about $2 billion (£1.57 billion) worth of shares at roughly $420 (£314) per share, Bloomberg reported. This internal valuation exceeds the $800 billion (£598 billion) figure previously reported.

The mathematics are striking for long-tenured employees. Those holding thousands of vested shares accumulated over multiple years could see their stakes valued in the millions of dollars at the proposed IPO valuation. Staff who joined during earlier funding rounds—when valuations were a fraction of current levels—stand to gain the most.

The Tax Complexity Awaiting New Millionaires

This sudden wealth creation comes with significant tax considerations. According to EP Wealth Advisors, incentive stock options can trigger alternative minimum tax (AMT) liabilities, while RSUs are taxed as ordinary income upon vesting based on their fair market value.

'SpaceX employees are busy in their careers, and often do not have the time to consider and plan for their own financial success,' notes EP Wealth. Selling shares immediately upon IPO could result in short-term capital gains taxed at higher rates, whereas holding for more than a year qualifies for more favourable long-term capital gains rates. However, SpaceX typically offers only one or two purchase windows per year, which may limit employees' ability to time sales for optimal tax efficiency.

Starlink Driving the Valuation Surge

The aggressive IPO timeline is also driven by Starlink's explosive growth. Bloomberg reports that SpaceX's satellite internet division now generates the majority of company revenue, with projections reaching $22 billion to $24 billion (£16.4 billion to £18 billion) by 2026, up from an estimated $15 billion (£11.2 billion) in 2025.

'SpaceX has been cash-flow positive for many years and does periodic stock buybacks twice a year to provide liquidity for employees and investors,' Musk stated on X last week.

SpaceX plans to use some IPO proceeds to develop space-based data centres, Bloomberg reports, signalling continued expansion beyond its core launch and satellite businesses.

The listing timeline remains subject to market conditions and could slip into 2027. However, for employees who bet their careers on Musk's Mars ambitions, the path to liquidity has never looked closer. Those who traded competitive salaries elsewhere for SpaceX equity may soon discover their gamble has paid off handsomely.