SpaceX US SDR 100to1: The Infrastructure of the Future

Space Exploration Technologies Corp (UXSD) 

How to access SpaceX through SGX

SGX is launching three new US Singapore Depository Receipts, or US SDRs, linked to Grab, Sea and SpaceX.

The SDRs will trade in Singapore dollars and in board lots of just 10 units, allowing investors to gain exposure to these US-listed companies with a minimum investment of less than S$30, based on their indicative launch prices.

The SDR ratios for Sea and SpaceX also mean that each SDR represents only a fraction of one underlying US share. This lowers the amount investors need to commit compared with buying a full share directly in the US market.

What is SpaceX?

SpaceX is an American aerospace and technology company founded by Elon Musk in 2002.

For much of its history, SpaceX was best known for building rockets, especially Falcon 9, the world’s first reusable orbital rocket.

Reusable rockets helped lower the cost of reaching space and changed the economics of the launch industry.

But SpaceX is no longer just a rocket company.

Since 2019, it has also built Starlink, the world’s largest satellite internet network, providing broadband connectivity from space.

Following the merger with xAI in early 2026, SpaceX has also added artificial intelligence to its business, including the Grok chatbot and the X social media platform.

In simple terms, SpaceX today is three businesses in one: a rocket company, a global satellite internet provider and an AI technology group.

Its long-term mission is to make life multiplanetary, but its near-term commercial ambition is to become a key infrastructure company for space, connectivity and AI compute.

How does SpaceX make money?

SpaceX reports three business segments: Space, Connectivity and AI. The key point for investors is that only one segment is clearly profitable today.

SpaceX’s Space segment provides launch services for commercial and government customers using Falcon 9 and Falcon Heavy rockets.

It also includes Starship, the next-generation rocket that underpins SpaceX’s long-term strategy.

In 2025, the Space segment generated US$4.1 billion of revenue, but profitability was weighed down by heavy research and development spending on Starship.

Connectivity, mainly Starlink, is the profit engine today.

Starlink provides satellite internet to about 10.3 million subscribers across 164 countries, including homes, ships, aircraft and mobile users.

In 2025, Connectivity revenue grew about 50% year-on-year to US$11.4 billion, with operating profit of US$4.4 billion and EBITDA of US$7.2 billion.

The AI segment includes Grok, the X social platform and COLOSSUS, SpaceX’s gigawatt-scale AI data centre infrastructure.

This segment generated US$3.2 billion of revenue in 2025, but remained heavily loss-making because of massive investment in AI data centres and compute capacity.

The AI segment recorded an operating loss of US$6.4 billion and capex of US$12.7 billion in 2025.

The key takeaway is that Starlink is funding SpaceX today.

It is already profitable and growing quickly, while Space and AI remain heavy investment areas.

SpaceX recorded a US$2.6 billion operating loss in 2025 despite generating US$18.7 billion of revenue, mainly because it is spending aggressively on Starship development and AI infrastructure.

In other words, Starlink is funding the present, while Starship and AI are bets on SpaceX’s future.

6 things investors should know about SpaceX

#1 - SpaceX has taken on US$25 billion in debt

On 23 June 2026, just 11 days after its IPO, SpaceX raised US$25 billion through a corporate bond offering.

Demand was strong, with the deal reportedly attracting nearly US$90 billion of investor interest.

However, equity investors reacted negatively, and SpaceX’s share price fell more than 13% that week.

The bond proceeds were used to repay a US$20 billion short-term loan that SpaceX had taken on to fund its AI data centre build-out before the IPO.

This does not suggest that SpaceX is in financial distress.

The company had about US$100.8 billion of cash on its balance sheet at the time.

However, the debt raise is a reminder that SpaceX’s AI ambitions are extremely capital-intensive.

The key question is whether Starlink’s cash flow, IPO proceeds and debt funding can support the investment needed for AI data centres and Starship without putting too much pressure on the balance sheet.

#2 - COLOSSUS II lawsuit is a near-term AI risk

SpaceX’s AI segment depends heavily on its COLOSSUS data centre infrastructure, including COLOSSUS II in Southaven, Mississippi.

In April 2026, the National Association for the Advancement of Colored People (NAACP) filed a lawsuit alleging that gas turbines powering the facility were operating without the required environmental permits under the US Clean Air Act.

The court has been asked to order the turbines to shut down.

This matters because SpaceX has a major compute agreement with Anthropic, the AI company behind Claude, to provide access to COLOSSUS compute capacity.

If COLOSSUS II is disrupted, even temporarily, SpaceX’s AI compute revenue could be affected.

SpaceX has set aside US$399 million for potential legal losses. The stock fell more than 5% when this risk resurfaced in early July 2026.

The key point is that SpaceX’s AI revenue is not just a demand story.

It also depends on power availability, environmental approvals, data centre execution and customer concentration.

#3 - Price-to-sales valuation above peers’ average 

SpaceX is valued at US$1.1 trillion, making it one of the largest companies in the group and below only Alphabet, Microsoft and Amazon by market value.

Its valuation multiples are also elevated. SpaceX trades at 47.0 times price-to-sales and 106.5 times EV/EBITDA, well above the peer average of 33.6 times sales and 41.8 times EV/EBITDA, and significantly above the median of 11.6 times sales and 16.6 times EV/EBITDA.

Compared with other space-related peers, SpaceX trades at a similar sales multiple to Rocket Lab, but at a much higher scale and with positive EBITDA. However, its valuation is still significantly above more mature satellite communications peers such as ViaSat and Iridium, which trade at much lower sales and EBITDA multiples.

#4 - Elon Musk controls 79% of the vote

SpaceX has a dual-class share structure.

The Class A shares listed on Nasdaq carry one vote each, while Elon Musk’s unlisted Class B shares carry ten votes each.

As a result, Musk controls about 79% of SpaceX’s voting power after the IPO.

This means public shareholders have limited influence over major corporate decisions.

They cannot outvote Musk on matters such as board appointments, mergers, acquisitions or capital allocation.

SpaceX is also classified as a “controlled company” under Nasdaq rules, which means it is exempt from some standard governance requirements.

Investors should also note that SpaceX has a mandatory arbitration clause, which may limit shareholders’ ability to bring disputes in open court.

Buying SpaceX shares means accepting that Elon Musk will continue to control the company.

#5 - The lock-up schedule 

When a company goes public, insiders such as employees and early investors are usually restricted from selling their shares for a period of time.

For SpaceX, the lock-up expires in stages, meaning shares will become tradeable in waves rather than all at once.

The key date to watch is around 6 August 2026, when SpaceX is expected to report its first quarterly earnings as a public company.

After two full trading days following the first public quarterly report, about 20% of total shares are expected to become eligible for sale.

This could roughly triple the amount of stock available for trading overnight, making it the biggest near-term supply risk for the share price.

After that, smaller tranches of around 7% are expected to unlock each month through October 2026.

By December 2026, about 60% of shares are expected to be freely tradeable.

Elon Musk’s founder shares remain locked up until June 2027.

For investors, the key point is that SpaceX’s current share price is still being shaped by a very tight float.

As more shares become available, liquidity should improve, but the stock could also face selling pressure if insiders choose to take profits.

#6 - SpaceX joined the Nasdaq-100 in record time 

SpaceX was added to the Nasdaq-100 on 7 July 2026, just 15 trading days after its IPO. This made it the fastest-ever company to join the index.

The inclusion was made possible by a Nasdaq rule change introduced in March 2026, which allowed newly listed companies to qualify for fast-track inclusion without waiting the usual 12 months.

Key Risks 

Starship execution risk

SpaceX’s long-term plan depends on Starship becoming reliable, reusable and scalable. This affects cheaper satellite launches, V3 Starlink deployment, orbital AI compute, and eventually Moon and Mars missions. So far, Starship has completed 11 test flights, but has not yet delivered a commercial payload. Any major delay would affect all three business segments.

Concentrated governance and voting structure

Governance is highly concentrated. Elon Musk controls about 79% of SpaceX’s voting power, which means public shareholders have limited influence over major decisions. His roles across Tesla, SpaceX and AI-related ventures also create management and focus risks. 

Lock-up expiry and float overhang

The 6 August earnings and lock-up date is a major event. SpaceX is expected to report its first quarterly results as a public company around the same time that the first major wave of insider shares becomes eligible for sale. If results disappoint and insiders sell, the stock could face pressure from both fundamentals and supply. Investors should also watch whether the stock crosses US$175.50 before then, as this determines whether an additional performance-based tranche unlocks.

AI segment integration and competition risk

The AI segment is still burning cash. SpaceX spent US$12.7 billion on AI data centre capex in 2025, and analysts expect further heavy cash burn in 2026. This is being funded by Starlink profits, IPO proceeds and bond financing. The key question is whether AI revenue can eventually justify this level of investment.

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