SpaceX filed its S-1 on May 20, 2026. Revenue for 2025 came in at $18.7 billion, driven in large part by Starlink, which alone contributed $11 billion. The filing also revealed $4.9 billion in net losses and more than $37 billion in total losses since inception, with roughly 60% of capital expenditure flowing to its AI division.
By any measure, this is the most anticipated IPO in years. And for cross-border clients, the opportunity comes with layers of complexity that are worth thinking through carefully before acting.
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WHY THIS MATTERS
SpaceX is not a normal technology company. It is a vertically integrated space and satellite infrastructure business with a dominant position in commercial launch, a fast-growing satellite internet business in Starlink, and deep ties to US government contracts. The IPO, when it happens, will likely be one of the largest public market events in recent memory.
For wealth management clients, especially those with cross-border exposure, this event surfaces several important planning questions.
How do you access it? At what point in the process? What are the tax implications on both sides of the border when you eventually sell? How does a single large, illiquid position interact with your broader estate plan?
These are not theoretical questions. They are the exact kind of planning details that make cross-border wealth management different from standard financial advice.
WHAT IT MEANS FOR YOUR PORTFOLIO
Access: Public vs. Pre-IPO
Most retail investors, and even many high-net-worth investors, will not have access to IPO shares at the offering price. The initial allocation goes to institutional investors. Most individuals will buy in the secondary market, at whatever price the stock settles to after listing.
Some clients have accessed SpaceX exposure through pre-IPO vehicles, secondary market platforms, or private equity funds that hold SpaceX shares. Each of these structures has different cost, liquidity, and tax treatment. If you have pre-IPO exposure, the IPO event triggers a transition from private to public that changes the liquidity profile of the position and may have immediate tax implications.
Tax Treatment Across the Border
For Canadian residents holding US-listed shares, capital gains on the sale of US equities are generally taxed as Canadian capital gains. However, the specific treatment depends on the type of account (registered vs. non-registered), the currency of the gain, and whether any withholding applies.
For US persons living in Canada, the picture is more complicated. US citizens and green card holders are taxed on worldwide income regardless of where they live. Gains on SpaceX shares, whether held in a Canadian or US account, are reportable to the IRS. Registered accounts like RRSPs have specific treaty treatment and need to be handled carefully.
For clients who have recently moved across the border, departure tax and deemed disposition rules in Canada may already have established a cost base for US-held securities. The interaction between that cost base and the eventual sale price is a calculation worth doing before you decide to participate.
Estate Planning Considerations
A large, concentrated IPO holding has real estate planning implications. If SpaceX lists at a high valuation and the position grows, that single holding could become a significant portion of your estate. In a cross-border context, that creates questions about US estate tax exposure (which applies to US-situs assets above certain thresholds for non-US persons), succession planning for the position, and whether holding it in a trust or corporate structure makes sense.
These are decisions that are much easier to make before the IPO than after the position has grown to a size that creates complexity.
THE BOTTOM LINE
SpaceX is a genuinely compelling business. The revenue is real, the market position is real, and Starlink’s growth trajectory is meaningful. Whether the IPO valuation represents good value is a separate question that will depend on the offering price.
For cross-border clients, the more pressing question is: if you want exposure, what is the cleanest way to access it given your specific situation? And what planning needs to happen before you act?
This is exactly the kind of moment where having a cross-border wealth plan already in place matters. If you do not have one, now is a good time to build it.
| Ready to talk through what this means for your plan?Book a call with Shiraz and the Sartorial Wealth team to review your cross-border strategy. sartorialwealth.com/contact |
FREQUENTLY ASKED QUESTIONS
Q: Can Canadians invest in the SpaceX IPO?
Yes, Canadian residents can generally purchase US-listed equities through their brokerage accounts. The practical question is access at the IPO price, which typically goes to institutional investors first. Most individuals will buy in the open market after listing. Tax treatment in Canada for gains on US equities depends on the type of account and the investor’s residency status.
Q: Do I have to pay US taxes on SpaceX shares if I live in Canada?
If you are a Canadian resident without US person status, you are generally not subject to US income tax on capital gains from selling US-listed equities. However, there are withholding rules on certain income types (dividends, distributions). US citizens and green card holders living in Canada must report and pay US tax on worldwide income regardless of where they reside. The Canada-US Tax Treaty provides some relief but requires careful navigation.
Q: What is deemed disposition and why does it matter for IPOs?
Deemed disposition is a Canadian tax rule that treats certain events, including leaving Canada, as if you sold all your assets at that point. If you moved to or from Canada and already have SpaceX exposure through pre-IPO shares, the cost base established at the time of your move affects how your eventual gain is calculated for Canadian tax purposes. Getting this calculation right before the IPO event matters.
Q: How does holding SpaceX shares affect my estate in a cross-border situation?
US-situs assets (including US-listed equities) are subject to US estate tax for non-US persons above certain thresholds. For a large, concentrated position in a high-growth company, this can become a meaningful exposure. Structuring that holding appropriately, through a trust, holding company, or other vehicle, is a planning step worth taking before the position grows.
Q: Should I wait until after the IPO to decide whether to buy?
Waiting has merit in the sense that you will have more pricing information. However, for clients with existing pre-IPO exposure, the IPO event itself has planning implications regardless. The tax and estate considerations are timing-sensitive. Having a plan in place before the event is better than reacting after the fact.
SOURCES
TechCrunch: The SpaceX IPO Filing Has Arrived
CNBC: SpaceX IPO Live Updates
SEC S-1 Filing: Space Exploration Technologies Corp.
Raymond James: The Open (May 20, 2026)
DISCLAIMER
This blog post is for informational and educational purposes only and does not constitute financial, tax, or legal advice. The information contained herein is based on sources believed to be reliable but is not guaranteed as to accuracy or completeness. Past performance is not indicative of future results. All investments involve risk, including the possible loss of principal. Cross-border tax and financial planning involves complex rules that vary by individual circumstance and jurisdiction. Consult a qualified financial advisor, tax professional, or legal counsel before making any investment or financial planning decisions. Sartorial Wealth Management Inc. is registered in Canada. US-based services may be subject to additional regulatory requirements.
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