SpaceX IPO: What Elon Musk's firm said about its risk factors

Wall Street is set for an action-packed Friday as shares of SpaceX, a space technology and artificial intelligence company, will start trading on NASDAQ.

The $74.4 billion SpaceX IPO has set the price at $135 per share. The successful listing of the world's biggest initial public offering could make Elon Musk, currently the world's richest person, a trillionaire.

As SpaceX's listing is around the corner, here's a look at risk factors from the filing.

SpaceX IPO: What are risk factors in the filing?

• If the space tech giant is unable to complete the development, testing and deployment of Starship at scale in accordance with its anticipated schedule or if it is unable to achieve sufficient launch cadence, reusability, and capability, it could adversely impact its business and financial condition.
• Any delay in receiving required regulatory approvals and licences for space-related activities, including FAA launch and reentry licences, could hamper company's operations and limit its ability to execute its business strategy.
• The company's satellite connectivity operations are subject to extensive regulations in the US and internationally. Obtaining and maintaining licenses and approvals for communication operations from the US and foreign regulatory authorities is important to its connectivity services. Any delay or disruption in obtaining it could impact business strategy.
• The AI products and X platform are exposed to evolving laws and regulations by US and foreign bodies regarding privacy, cybersecurity, data use, data protection, data combination, content, AI, competition, youth protection, safety, e-commerce, and other matters.
• SpaceX, in its IPO papers, said that it has experienced, and will likely continue to experience, launch delays and failures that could impact financials.
• The company's ability to scale its AI products depends on terrestrial and orbital AI compute infrastructure, which depends on the availability of AI processors, power, and other critical components, and any shortages or disruptions could affect business, financial condition and future prospects.
• SpaceX's efforts to create permanent installations on the Moon and Mars depend on the successful development and deployment of next-generation capabilities.
• The firm has a history of net losses and may not achieve profitability in the future.