LATE on Wednesday evening Space X, the company owned by multi-billionaire Elon Musk, announced its plans to float on the stock market next week, aiming to raise a record amount of money and make Musk the world’s first trillionaire.
Space X, currently owned by Musk, intends to go public at a valuation of $1.78 trillion, selling 555.6 million shares at $135 each and raising $75 billion – a figure that could increase to $86 billion if the banks underwriting the deal, take up the option to sell additional shares.
Musk would still retain complete control over Space X, holding 82.4% of the voting shares.
Space X issued a prospectus that departed from the normal dry, technical language usually used by companies floating on the stock exchange – instead detailing Musk’s plans to colonise the Moon and even the planet Mars.
One section of the document talks about the need to build ‘a permanent human colony’ on Mars with ‘at least one million inhabitants’ as existential threats loom that could consign humanity to ‘the same fate as the dinosaurs’.
Apart from wandering into the depths of Musk’s delusions about colonising the planets, the prospectus is full of claims that Space X’s rocket operations and its ambitions for orbital artificial data centres, will reap untold profits for the massive artificial intelligence (AI) industry that dominates the Wall Street stock exchange.
What the prospectus doesn’t dwell upon is the fact that Space X posted a net loss of $4.94 billion in 2025, leading financial analysts to describe the company as a ‘money furnace’.
Musk has placed a valuation on his company over 90 times its annual revenues.
The Guardian newspaper noted ‘investors would rather value companies as a multiple of its profits’.
This will not stop the banks and financial speculators from rushing in to buy up Space X’s shares, despite all the warnings about the dangers of the AI bubble bursting and bringing down the stock markets of the world.
They will be driven by the promise that AI will transform capitalism by doing away with the requirement to employ workers.
The dream being sold to them by all the AI high-tech companies is a future where the bosses no longer need a workforce but that somehow their profits will still continue to roll in.
This is despite the obvious fact, that there will be no-one, apart from the multi-billionaire tech bosses, who can afford to buy their products.
Launching Space X company onto the Stock Exchange, has been met with trepidation by analysts who fear it holds the potential for bursting the AI bubble.
The Daily Telegraph newspaper this week reported the warnings last month from Joachim Klement, an analyst at stockbroker Panmure Liberum, about the ‘impossible maths’ surrounding some of the major AI companies who have ploughed billions into investments in data centres and AI infrastructure with no returns in terms of any profit.
These giant tech companies completely dominate Wall Street and their collapse will result in a world financial crash dwarfing that of the 1929 crash which ushered in the Great Depression.
Meanwhile, last week The International Business Times reported that some of the largest companies in America are urging workers to ‘ration’ using AI because of the massive costs incurred.
Capitalism has reached the end of the road.
It is dominated by a class of financial capitalists like Musk, whose trillion-dollar worth relies entirely on state subsidies and is propped up by speculators who have bought into his dream of a capitalist world liberated from the working class.
The working class will never accept being driven into destitution by a bankrupt capitalist system.
The working class has the power to put an end to capitalism, which is the real ‘existential threat’ to humanity.
The burning issue today is for the working class internationally to take power and advance humanity by expropriating the capitalist class and building a socialist planned economy, based on the principle from each according to their ability to each according to their needs. Build sections of the International Committee of the Fourth International worldwide to provide the leadership required for the World Socialist Revolution.
