SAUDI ARABIA PERSPECTIVE

Riyadh, May 21, 2026. Elon Musk's announcement of a major listing of SpaceX in the history of financial markets has caught the attention of Saudi business circles. The prospectus filed reveals a company with striking contrasts: $18.7 billion in revenue in 2025, but a $2.6 billion operating loss for the year, with deficits extending into the first quarter of 2026.

The true financial driver of the company remains Starlink, its satellite communications branch, which generated $4.4 billion in operating profit last year. The network deploys 10,000 satellites in low Earth orbit to provide internet access to 10 million subscribers in 150 countries and territories - a global market that includes several Middle Eastern and African states.

However, the file raises structural questions that Gulf institutional investors cannot ignore. Some 20% of SpaceX's revenue comes from US federal contracts - NASA, Pentagon, and various agencies - totaling $6 billion over five years, according to USAspending.gov. Musk's proximity to the Trump administration, of which he was the main campaign donor, fuels questions about the sustainability of these contracts beyond the current presidency.

Two recent acquisitions have worsened the consolidated balance sheet: X (formerly Twitter) and xAI, acquired by SpaceX, are both loss-making. xAI alone recorded $6.4 billion in operating losses in 2025, which several historical shareholders have described as a bailout at the expense of the space company.

Governance post-listing also raises concerns. Musk and certain reference shareholders will hold 'super-voting' shares - ten votes per share - allowing them to elect the majority of the board of directors. This dual structure mechanically limits the power of minority shareholders.

Musk's compensation is as intriguing as it is fascinating. His nominal salary remains unchanged at $54,080 per year since 2019. The bulk of his compensation is based on conditional stock awards tied to market capitalization milestones: the valuation should reach $7.5 trillion - more than four times Apple's current market capitalization - for complete vesting. A more exotic criterion provides additional grants if SpaceX installs giant data centers in orbit.