SpaceX Trading Launches After Record $75 Billion IPO, Expected to Surge Over 25% at Open
The highly anticipated trading of SpaceX shares is set to commence on Friday, marking the company’s debut on Nasdaq. This event will test the extent of unprecedented investor interest, as SpaceX aims to achieve a successful launch for what is projected to be the largest initial public offering (IPO) in history.
Shares are expected to open at approximately $171, reflecting a 27% increase from the initial IPO price of $135. The excitement surrounding this debut transitions into a significant evaluation of Wall Street’s trading capabilities, with exchanges, market makers, and underwriters preparing for an influx of orders following the sale of $75 billion in shares. This valuation positions SpaceX at $1.77 trillion, ranking it among the largest companies in the United States.
Exchanges and trading firms are particularly cautious, aiming to avoid the technical glitches that plagued Meta’s IPO in 2012. SpaceX’s listing 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 artificial intelligence leaders such as Anthropic and OpenAI. Trading of SpaceX shares is anticipated to begin mid-day, as the exchange aggregates buy and sell orders, delaying trading until a balance between supply and demand is established.
Samuel Kerr, global head of equity capital markets at Mergermarket, indicated that an immediate surge in trading could be expected, potentially exceeding 20%. He expressed concern that any lower performance could signal issues.
At 9:30 a.m. ET (1330 GMT), SpaceX President Gwynne Shotwell and Chief Financial Officer Bret Johnsen officially rang the Nasdaq opening bell. This landmark listing solidifies Elon Musk’s position as the world’s first trillionaire and elevates SpaceX to the ranks of the most valuable companies globally, despite reporting a loss of nearly $5 billion last year and generating only a fraction of the revenue of similarly valued tech firms.
Musk remarked that he initially believed SpaceX had only a 10% chance of success. The performance of the stock will also serve as a test for the so-called “Musk premium,” which has significantly influenced Tesla’s valuation exceeding $1 trillion, even amidst challenges during Musk’s involvement in the Trump administration.
The World’s Largest IPO
This record-setting IPO represents the culmination of Musk’s long-standing aspirations in the realms of space and technology. It has notably redefined Wall Street’s approach to IPOs and attracted a substantial number of retail investors.
With proceeds of $75 billion, this IPO surpasses Saudi Aramco’s 2019 record by more than double. SpaceX is poised to become the first U.S. company to debut at a trillion-dollar valuation and is expected to rank as the seventh-largest U.S. company by market capitalization.
The valuation may increase further if underwriters opt to sell additional shares, a decision typically made within 30 days following the offering. While SpaceX may need to wait for inclusion in the S&P 500, its anticipated fast-track entry into the Nasdaq 100 will likely establish it as a key holding for passive funds and exchange-traded funds (ETFs) that track the index, generating additional demand for its shares.
Joel Shulman, CEO of ERShares, noted the rarity of comparable entrepreneurs, emphasizing Musk’s visionary approach and execution capabilities. Under Nasdaq’s new fast-entry rules, SpaceX is expected to be added to the index within a month, a significant reduction from the typical wait of up to a year.
Some analysts predict that SpaceX’s debut could lead to a reshuffling of investor portfolios, potentially exerting selling pressure on other technology giants as funds shift their focus to this new stock.
A $28.5 Trillion Market Opportunity
Despite the excitement surrounding the IPO, accurately assessing SpaceX’s valuation remains complex. The company claims a market opportunity of $28.5 trillion, which it describes as the largest in human history. With a dominant position in the space sector—responsible for over 80% of the mass launched into orbit in the past three years—and revenue from its Starlink satellite internet service, some investors believe SpaceX has a solid foundation for growth.
John Belton, portfolio manager at Gabelli Funds, suggested that Tesla serves as the best comparable to SpaceX, as both companies possess established businesses along with significant future opportunities. He highlighted that for Tesla, these opportunities include advancements in humanoid robotics, while for SpaceX, the focus is on artificial intelligence.
Challenges to SpaceX’s lofty valuation include competition from rivals like Jeff Bezos’ Blue Origin, which is actively pursuing government contracts and seeking to accelerate the commercialization of space.
With projected revenue of $18.7 billion by 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 reasonable valuation of around $780 billion.
Nancy Tengler, CEO and CIO of Laffer Tengler Investments, stated that investing in SpaceX is not based on traditional fundamentals, likening it to Amazon’s transformative impact on society. She expressed a willingness to participate in the stock’s journey, regardless of short-term fluctuations. Meanwhile, shares of other space companies, including Intuitive Machines, Planet Labs, and Satellogic, have experienced declines ranging from 7% to 12%.
Source: www.zawya.com
Read all the latest developments and breaking updates in the Latest News section.
Published on 2026-06-12 19:08:00 • By the Editorial Desk
