SpaceX completes record $75 billion IPO, stock surges 19 percent on first day
SpaceX, Elon Musk's rocket and satellite company, went public on Friday in the largest initial public offering in history. The company raised seventy-five billion dollars by selling shares at one hundred thirty-five dollars each, giving it a market valuation of approximately one point eight trillion dollars. This makes SpaceX one of the world's most valuable public companies and would make Musk the world's first trillionaire based on his holdings. The IPO received massive investor demand, with the stock opening at one hundred fifty dollars and closing at one hundred sixty-one dollars, up nineteen percent on day one. SpaceX merged with Musk's AI company xAI before going public and plans to use IPO proceeds for ambitious projects including orbital data centers, expanded Starlink satellite internet deployment, and lunar missions. However, the company remains unprofitable overall, though its Starlink division generates revenue.
Key facts
- SpaceX raised $75 billion in the largest IPO in history, surpassing Saudi Aramco's 2019 record of $26 billion
- Company priced shares at $135 each, opening at $150 and closing at $160.95, a 19% gain on first trading day
- IPO valued SpaceX at approximately $1.77 to $1.8 trillion, making it one of the world's most valuable companies
- Elon Musk's combined stake in SpaceX and Tesla made him the world's first trillionaire on paper
- Morningstar analysts valued SpaceX at $780 billion, roughly 48% below its IPO valuation, citing concerns about profitability and xAI integration
- SpaceX has accumulated $41.3 billion in total losses since its 2002 founding, though Starlink is profitable
- Over 4,400 SpaceX employees and former employees could become millionaires from the IPO
- Musk controls approximately 85% of voting power despite owning 42% of equity through dual-class share structure
How different outlets framed it
Left-leaning coverage: Left-leaning outlets and critics express concerns about the IPO's massive overvaluation relative to profitability, Musk's concentration of voting control, and how the accelerated index-inclusion rules expose pension funds and retirees to excessive risk. Senator Elizabeth Warren questioned index operators about rule changes that favored the IPO, while pension fund managers worry about governance issues and the company's lack of profitability.
Right-leaning coverage: Right-leaning commentators celebrate the IPO as a triumph of American innovation, free-market capitalism, and entrepreneurship. Fox Business host Charles Payne highlights the wealth creation for thousands of employees becoming millionaires and presents it as proof that capitalism rewards visionary risk-taking. Some emphasize this as a validation of Musk's business acumen and entrepreneurial spirit.
Limits of this briefing
Coverage of SpaceX's IPO valuation is deeply divided between enthusiasts and skeptics, making it difficult to assess fair value. The company's profitability remains uncertain due to xAI integration and unproven projects like orbital data centers, leaving significant questions about long-term investor returns.
Sources
- CNBC: SpaceX IPO takeaways: SPCX closes at $161, jumping 19% after record debut Centre
- NPR: SpaceX IPO makes history as largest ever. Stock gains 19% on first day Centre
- Al Jazeera: Musk's $1.8 trillion SpaceX IPO could be 'highly undesirable' for some Left
- Fox Business: Charles Payne discusses SpaceX's historic IPO and impact on capitalism Right
- Morningstar: Why We Think the SpaceX IPO Is Overvalued Centre