SpaceX Shares Surge 11% in Strong Nasdaq Debut, Testing Musk Premium in Record $75B IPO

SpaceX made a significant entrance into the public market on Friday, with its stock rising 11% during its Nasdaq debut. This surge elevated the company’s valuation to approximately $1.96 trillion, marking it as the largest initial public offering (IPO) in history. Investors flocked to the offering, drawn by Elon Musk’s expansive portfolio that includes rockets, satellite communications, and artificial intelligence.

The stock began trading at $150 per share, surpassing its initial public offering price of $135. The IPO is under close scrutiny, as market analysts indicate that the performance of SpaceX shares could impact the broader IPO landscape. Some bankers have expressed concerns that if SpaceX shares close below their opening price, it could signal challenges for future IPOs.

Implications for the IPO Market

SpaceX’s debut is viewed as a potential precursor for a new wave of mega-listings, with market participants keenly observing investor sentiment ahead of upcoming IPOs from AI leaders such as Anthropic and OpenAI. The stock’s performance is also seen as a test for the so-called “Musk premium,” a term that refers to the elevated valuation Tesla has enjoyed, which has surpassed $1 trillion despite facing challenges during Musk’s involvement in the Trump administration.

The successful listing has solidified Musk’s status as the world’s first trillionaire and propelled SpaceX into the ranks of the most valuable companies globally. This is notable given that the company reported a loss of nearly $5 billion last year and generated significantly less revenue than other tech giants of similar valuation.

Musk remarked on the company’s journey, stating, “I gave SpaceX a 10% chance of succeeding at all,” shortly before the market opened. SpaceX President Gwynne Shotwell and Chief Financial Officer Bret Johnsen rang the Nasdaq opening bell at 9:30 a.m. ET (1330 GMT).

Record-Breaking IPO

The $75 billion raised through this IPO is more than double the proceeds from Saudi Aramco’s record-setting IPO in 2019. The valuation of SpaceX could increase further if underwriters opt to sell additional shares within the typical 30-day window following the offering.

While SpaceX may have to wait for inclusion in the S&P 500, it is expected to be fast-tracked into the Nasdaq 100. This inclusion will likely make SpaceX a significant holding for passive funds and exchange-traded funds (ETFs) that track the index, potentially creating additional demand for its shares.

Joel Shulman, CEO of ERShares, which manages an ETF with exposure to SpaceX, noted the rarity of entrepreneurs like Musk, emphasizing his visionary approach and execution capabilities. The company is expected to be added to the Nasdaq index within a month, a significant acceleration compared to the typical wait time of up to a year.

Some analysts predict that SpaceX’s strong debut may lead to a reshuffling of investor portfolios, resulting in selling pressure on other technology stocks as funds reallocate into SpaceX shares.

Market Opportunity Valued at $28.5 Trillion

Despite the excitement surrounding the IPO, accurately valuing SpaceX remains complex. The company claims a market opportunity of $28.5 trillion, which it describes as the largest in human history. SpaceX asserts that it is responsible for over 80% of the mass launched into orbit in the past three years, alongside revenue generated from its Starlink satellite internet service.

John Belton, a portfolio manager at Gabelli Funds, highlighted Tesla as the best comparable to SpaceX, noting that both companies have established businesses and significant future opportunities. He pointed out that for Tesla, this includes advancements in humanoid robotics, while for SpaceX, the focus is on artificial intelligence.

However, SpaceX faces challenges from competitors like Jeff Bezos’ Blue Origin, which are working to accelerate the commercialization of space and secure government contracts to explore new markets beyond Earth. With projected revenue of $18.7 billion in 2025, SpaceX’s market capitalization results in a price-to-revenue ratio of 94. Some analysts have already issued favorable ratings for the company, with Morningstar estimating a more realistic valuation of around $780 billion.

Nancy Tengler, CEO and CIO of Laffer Tengler Investments, commented on the nature of investing in SpaceX, stating, “This is not a name you’re buying based on fundamentals. For me, the analogy is Amazon. This was a company that changed the way we live. If the stock drops to $100, that’s not ideal, but it wouldn’t change our long-term view. We want to participate.”

Source: www.emirates247.com

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Published on 2026-06-12 20:09:00 • By the Editorial Desk