SpaceX made a historic entrance into the Nasdaq on Friday, surging over 20% in its first day of trading and lifting its valuation to more than $2 trillion. Investors flocked to the world’s largest IPO, betting on Elon Musk’s sprawling empire spanning rockets, AI and beyond.
The stock opened at $150 per share, above its IPO price of $135, and was soon trading at $164, making SpaceX the sixth-largest U.S. company by market value. The debut was closely watched as a bellwether for the IPO market, with some bankers cautioning that a share price below the IPO level could have spooked investors in upcoming listings.
Market participants are viewing SpaceX’s IPO as a rehearsal for a new generation of mega-listings, including AI giants Anthropic and OpenAI. Analysts are eager to see whether the so-called “Musk premium” which has propelled Tesla to a $1 trillion-plus valuation remains intact despite past controversies.
“I gave SpaceX a 10% chance of succeeding at all,” Musk admitted in Texas shortly before the opening bell. SpaceX President Gwynne Shotwell and CFO Bret Johnsen rang the Nasdaq opening bell at 9:30 a.m. ET.
The record-breaking $75 billion deal more than doubles the proceeds of Saudi Aramco’s IPO in 2019. While SpaceX may have to wait for inclusion in the S&P 500, it is expected to join the Nasdaq 100 quickly under new fast-track rules, creating additional demand from ETFs and passive funds.
Joel Shulman, CEO of ERShares, said, “We have to go back 100 years to get comparable entrepreneurs. He’s a visionary unlike others, and he executes extremely well.”
Despite the excitement, SpaceX’s true value remains difficult to gauge. The company claims a $28.5 trillion market opportunity, the largest in human history. With its dominant position in space launches and revenues from Starlink, some investors see a strong foundation for growth.
John Belton of Gabelli Funds compares SpaceX to Tesla, noting both have established businesses with “moonshot opportunities.” For SpaceX, the upside includes its AI initiatives and ongoing space commercialisation.
Rivals like Jeff Bezos’ Blue Origin are racing to expand space commercialisation and secure government contracts. With $18.7 billion in revenue in 2025, SpaceX’s market cap implies a price-to-revenue ratio of 94, far higher than most tech companies. Morningstar analysts suggest a fair valuation closer to $780 billion.
Nancy Tengler, CEO of Laffer Tengler Investments, said, “This is not a name you’re buying based on fundamentals. The analogy is Amazon, a company that changed the way we live. Even if the stock drops, it wouldn’t change our long-term view.”
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