On Friday, SpaceX posted a video of its third-generation Starship — and the timing wasn't accidental.
The company's IPO registration statement is expected to go public in late May. The 12th Starship test flight is also targeted for late May. Both events are converging at the same moment.
So, what exactly did SpaceX reveal?
The new Starship stands 408 feet tall. The booster alone runs 33 rocket engines. It's fully reusable — both the booster and the upper stage are designed to be caught and relaunched. The previous Falcon 9 recovered only the booster.
Here's the number that matters for investors: Starship is designed to cut the cost of reaching low Earth orbit by as much as 90% compared with Falcon 9. Falcon 9 itself already cut launch costs by roughly 95% compared with the Space Shuttle.
This means SpaceX will have reduced the cost of launch by 98%.
That's two back-to-back revolutions in the cost of getting to space.
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What does this mean for the IPO?
Every revenue opportunity SpaceX is pitching — Starlink expansion, direct-to-cell service, orbital AI data centers — depends on cheap access to space. Starship is the engine that makes all of it economically viable.
SpaceX's sales are expected to reach $20 billion in 2026, with an estimated EBITDA margin of 71%. Those are extraordinary numbers for any company, let alone one that also builds its own rockets, satellites, and ground infrastructure.
Starship makes the next phase significantly larger.
The competitive picture is also worth noting. Blue Origin — arguably SpaceX's nearest challenger — just suffered a mission failure on April 19 when its New Glenn rocket failed to place a satellite in the correct orbit. The satellite will burn up on reentry. That's a meaningful reputational setback for the company still trying to establish itself as a reliable launch partner.
No other company is close to operating a fully reusable rocket at scale. Rocket Lab, Stoke Space, and Relativity Space are all years behind — and some are struggling financially.
SpaceX's competitive moat isn't just wide. With Starship V3, it's getting even deeper.
The IPO roadshow is underway. The registration statement goes public in weeks. If the May test flight goes well, it will be one more proof point for investors writing very large checks.
Here’s how I’m securing shares – at a deep Pre-IPO discount.
Ian Wyatt
Editor, IPO Watch