Will SpaceX Spend Its IPO Billions on Real Estate?

When an initial public offering (IPO) is in the offing, it can create a lot of wild rumors -- some of which might even be true.

Take the case of SpaceX. As the world's biggest rocket company, and Elon Musk's vehicle for IPO'ing xAI and reIPO'ing Twitter, prepares to become the largest IPO in history, a new rumor has emerged on the internet:

Elon Musk is buying up swampland in Louisiana to build a second Starbase spaceport.

Truth is stranger than fiction

Does this sound odd? And yet it might actually be true. In a post on X earlier this week, realtor Jim Keaty of Keaty Real Estate (tagline: "Louisiana's most innovative real estate team") is cited as claiming that "SpaceX may have acquired or is acquiring 136k acres (212 sq miles) of marshland" on the Louisiana coast.

SPACEX: A realtor named Jim Keaty of Keaty Real Estate published a rumor of possible SpaceX land acquisition in Louisiana.

It states SpaceX may have acquired or is acquiring 136k acres (212 sq miles) of marshland south of Highway 82 toward the Gulf of America in Pecan Island... https://t.co/3mv5Do8sTP pic.twitter.com/c36x41kNMw

-- S.E. Robinson, Jr. (@SERobinsonJr) May 4, 2026

The post goes on to point out that the land parcel in question:

• Has "direct access to the Intercoastal Canal and the Gulf of America" (useful for both launching rockets safely over water, and potentially for recovering rockets that land on barges at sea).
• Is located "halfway between Boca Chica and Cape Canaveral" -- two of Musk's favorite spaceports.
• And "has easy access to Cheniere LNG and Golden Pass LNG."

What it means for investors

It's that last bit that might be of most interest to investors.

As far as the general rumor goes, SpaceX came halfway to confirming it in an official X post on Tuesday, conceding that it is "constantly exploring to find viable sites to expand Starship operations in the future, both domestically and internationally."

It's no secret that we intend to launch Starship a lot, targeting thousands of flights per year. That cadence will require the ability to launch from many different locations, so we are constantly exploring to find viable sites to expand Starship operations in the future, both... https://t.co/6TrcaGrvVe

-- SpaceX (@SpaceX) May 12, 2026

But consider, too, the implications of the poster's observation about Cheniere Energy (NYSE: LNG) and Golden Pass LNG -- a liquefied natural gas terminal in which ExxonMobil (NYSE: XOM) holds a 30% interest, according to S&P Global Market Intelligence.

Although the SpaceX Starship rocket is still conducting flight tests and has not yet been certified to fly national security missions, for example, recent flight tests have proven increasingly successful, providing evidence that Starship is on the right path to beginning commercial operations. Once it does, Elon Musk is on record predicting the spacecraft will eventually reach a launch cadence of 24 per day worldwide, flying "both domestically and internationally."

And here's the thing: Musk is going to need a lot of (natural) gas to make all those trips. Each Starship launch is estimated to consume approximately 1,040 metric tons of methane rocket fuel (methalox), which is produced by purifying and cooling natural gas.

Or put more simply: Liquefied natural gas is rocket fuel.

It makes sense that, when seeking new launch sites, SpaceX would prioritize locations such as Louisiana that have ready access to abundant LNG supplies. The way I read it, this rumor is therefore more likely true than false -- and Cheniere and ExxonMobil may have just found a new favorite customer in SpaceX.

Rich Smith has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Cheniere Energy and S&P Global. The Motley Fool has a disclosure policy.