Musk Debt Repayment Ahead of Potential SpaceX IPO

• Musk linked companies are repaying US$17.5 billion in debt to strengthen financial positions.

• SpaceX is evaluating a potential IPO while designing governance to preserve founder control.

By Kenzie Aryasatya, Felicia Humaira Mumtaz, Muthia Noor Safitri, Alexa Vendra Syahira, Muhammad Sahl Samudro

February 27, 2026, at 16:30 GMT+7

Elon Musk’s technology businesses are moving to repay a large portion of outstanding debt as part of broader financial restructuring across his corporate network. Social media platform X and artificial intelligence startup xAI are reportedly preparing to address roughly US$17.5 billion in combined liabilities, including a plan for xAI to repurchase around US$3 billion in high-yield bonds ahead of maturity. 

Read more: Bakrie & Brothers Seeks 90 Billion Share Rights Issue

The buyback is expected to be conducted at a premium to lenders, providing an incentive for creditors to accept early repayment. This move is widely interpreted as an effort to clean up balance sheets and improve financial positioning across companies affiliated with Elon Musk. Further restructuring efforts could also reduce leverage pressure at a time when investors are increasingly focused on the financial stability of Musk’s integrated ecosystem.

Elon Musk, CEO of Tesla Motors | Source: AP Photo/Ringo H.W. Chiu

At the same time, SpaceX is reportedly evaluating plans to pursue one of the largest public listings in modern market history. According to multiple media reports, SpaceX is considering filing confidentially for an initial public offering (IPO) as early as March 2026. 

Read more: Christine Lagarde Set to Exit ECB Before Term Completion

If completed, the listing could value SpaceX at more than US$1.7 trillion, potentially placing it among the most valuable companies to ever go public. Much of the company’s growth narrative is tied to its rapidly expanding Starlink satellite internet business, which accounts for roughly 50% to 80% of SpaceX’s total revenue. 

Starlink’s increasing global subscriber base and wider service coverage have strengthened investor interest in the company, supporting expectations that SpaceX could attract significant demand from institutional investors should the IPO process formally begin.

SpaceX Factory | Source: Getty Images

SpaceX is also evaluating governance structures to preserve Elon Musk and early insiders’ control after a potential IPO. One option under consideration is a dual-class share structure that grants different voting rights to separate classes of shares. 

Read more: RLCO Shares Halted After 5,000% Increase Since IPO

These governance structures are commonly adopted by technology companies where founders retain leadership roles, balancing access to public capital with long-term strategic control. Simultaneously, Elon Musk has undertaken extensive organizational adjustments across his companies, including structural changes involving artificial intelligence firm xAI.

These moves suggest an effort to streamline Elon Musk’s technology ventures while aligning them with future capital market expectations. Governance design and corporate structure are likely to remain key considerations if SpaceX moves forward with an IPO.

---

Sources:

Bloomberg 

Reuters