SpaceX IPO: The Biggest IPO in History - How Elon Musk's $75 Billion Offering Changed Wall Street Forever

On June 12, 2026, the aerospace and artificial intelligence company SpaceX, owned by Elon Musk, made history on Wall Street by issuing the biggest-ever initial public offering (IPO). The company raised $75 billion by issuing 555.6 million shares at $135 each, taking its value to $1.75 trillion at launch and becoming the seventh-highest valued company in the US even before the stock exchange opened for trading. By the end of that day's trading session on the Nasdaq stock exchange, SpaceX's share price had risen 19.2% to close at $160.95, taking its market capitalisation above the $2 trillion mark and creating the world's first trillionaire.

The SpaceX IPO was more than just a financial event; it represented the turning point in the relationship between the aerospace industry, artificial intelligence, and capital markets. The SpaceX IPO redefined what investors are willing to pay for future-oriented technology, defying conventional valuation metrics and establishing a new paradigm for pricing "strategic tech" companies.

What Is SpaceX and What Does It Do?

SpaceX, founded by Elon Musk in 2002, is a space technology and aerospace manufacturer that designs, manufactures, and launches advanced rockets, spacecraft, and satellites. For nearly a quarter-century, the company remained private, funded through a combination of venture capital, private equity, Musk's personal wealth, and lucrative government contracts from NASA and the U.S. Department of Defense.

The company operates through three primary business segments:

1. Launch Services (SpaceX Rockets): SpaceX is the only private company capable of launching astronauts into orbit and returning them safely. Its Falcon 9 and Falcon Heavy rockets are the most reliable and cost-effective launch vehicles in the world, having completed hundreds of missions. The company has revolutionised spaceflight by making rockets reusable, dramatically reducing the cost of access to space.

2. Starlink (Satellite Internet): This is SpaceX's most commercially significant division. Starlink operates a constellation of thousands of low-Earth orbit satellites providing broadband internet to remote and underserved regions globally. Starlink is the sole profitable segment of SpaceX and generates the majority of the company's revenue. In 2025, Starlink's revenue surged significantly as it expanded coverage across rural America, maritime industries, and developing nations.

3. AI and Space-Based Data Centres: In February 2026, the AI division of SpaceX was consolidated into the rest of the business. SpaceX has been aggressively expanding its AI data centres, even going as far as planning orbital AI data centres, which are potential solutions to the energy limitations of terrestrial AI computers.

In 2025, SpaceX had total revenues of $18.67 billion, a 33% year-over-year increase, with $4.69 billion of revenue recorded in Q1 2026, marking a 15% increase compared to Q1 2025. Still, despite the significant growth in its revenues, SpaceX continues to be unprofitable, with net losses of $4.94 billion in 2025 and $4.28 billion in Q1 2026.

During Q1 2026, the capital expenditures of SpaceX were $10.1 billion, twice as much as it spent in the previous year, with $7.7 billion invested in AI development and the remaining money in space and connectivity infrastructure.

The IPO Details: Breaking Down the $75 Billion Offering

SpaceX's IPO was unprecedented not only in its size but in the way it was structured and marketed. Here are the complete details:

The underwriters later exercised their "greenshoe" overallotment option, purchasing an additional 83.3 million shares, bringing the total raised to $85.7 billion, nearly the size of the entire annual IPO market in some years.

Breaking Wall Street Conventions

The IPO by SpaceX was unique in its breaking of so many traditions. In contrast to the common practice, where companies offer a price range for assessing interest among investors before deciding on a certain price, SpaceX offered a price of $135 straight away after a series of exploratory meetings with investors. This approach eliminated the traditional pricing drama and signalled supreme confidence.

The company also priced its shares a week early, upending the conventional Wall Street roadshow process. This was a power move - SpaceX knew demand was overwhelming and didn't need to shop the deal.

Another unconventional aspect: SpaceX went public despite being deeply unprofitable. The company has an accumulated deficit of approximately $41.3 billion since its inception in 2002 and cautioned in its prospectus that achieving profitability in the future may not be guaranteed. Yet investors didn't care. The market's appetite for AI-exposed, world-changing technology trumped traditional financial metrics.

The Valuation Debate: Is $2 Trillion Justified?

SpaceX's IPO sparked fierce debate among analysts about whether the valuation is rational.

Bulls point to the company's irreplaceable technology, dominant market position in commercial space, Starlink's revenue trajectory, and the massive AI opportunity. Oppenheimer initiated coverage with an "outperform" rating and a $190 price target, suggesting a 40% upside from the IPO price.

New Street Research initiated coverage with an even more aggressive $400 price target, valuing SpaceX's AI division alone at $575 billion, comparable to expectations for upcoming IPOs from OpenAI and Anthropic.

Bears are sceptical. Keith Snyder from CFRA Research assigned a "sell" rating with a $115 price target, significantly below the IPO price. He argued that SpaceX's valuation requires remarkable growth rates in the AI sector that may not materialise.

The stock is valued on a valuation-to-revenue basis that surpasses even the most bullish technology stocks. At the level of $18.67 billion in revenue in 2025, the valuation of $2.1 trillion represents a revenue multiple of 112 times, which appears very conservative compared to even the most bubbly artificial intelligence stocks.

Why Investors Were So Eager to Buy

Despite the valuation controversy, demand for SpaceX shares was extraordinary. The stock was the most purchased stock among retail investors on its debut day, with retail turnover reaching $453 million.

Several factors drove this frenzy:

1. The Elon Musk Premium: Musk is arguably the most famous entrepreneur in the world. Investors have learned that betting against Musk is dangerous. Tesla's success after its 2010 IPO, where Musk took the company public at $17 per share (it's now worth hundreds of billions), created a track record that retail investors trust.

2. AI Exposure: In 2026, every company with credible AI exposure commands a premium. SpaceX's AI division, combined with its orbital data centre ambitions, positioned it as a unique AI infrastructure play that no other company offers.

3. Starlink's Monopoly: Starlink is the only global satellite internet provider that works reliably. With millions of subscribers and near-monopolistic positioning in remote connectivity, investors see it as a recession-resistant, utility-like revenue stream.

4. Government Moat: SpaceX's government contracts for national security launches and NASA missions provide revenue stability and make the company effectively "too important to fail" in the eyes of the U.S. government.

5. Scarcity Value: For 24 years, ordinary investors couldn't buy SpaceX shares. The pent-up demand from retail investors who wanted exposure to Musk's space empire was immense.

The Biggest IPO Ever: By The Numbers

To understand how SpaceX's IPO dwarfs everything before it, consider this comparison:

SpaceX's $75 billion raise is approximately 3 times larger than the biggest U.S. IPO to date and surpassed Saudi Aramco's 2019 record in both valuation and money raised.

Elon Musk Becomes the World's First Trillionaire

The IPO's most sensational outcome was financial rather than technological. At the $2.1 trillion valuation, Musk's stake in SpaceX was worth approximately $866.5 billion, which, combined with his Tesla holdings (valued at roughly $320 billion), made him the world's first trillionaire.

The milestone triggered political discussions. According to one economist, the wealth levels that Musk holds, being the first person in the world to attain such levels of extreme wealth, point to huge economic disparities. Senator Elizabeth Warren called for a wealth tax in response.

Musk maintains over 82% of the voting rights at SpaceX, effectively giving him complete control over the board regardless of the public offering.

What SpaceX Plans to Do with the $85.7 Billion

SpaceX isn't just pocketing the IPO cash - it has ambitious, capital-intensive plans:

1. Orbital Data Centres: Musk is proposing space AI data centres as a possible solution to the energy needs of AI computing on Earth. The proceeds will go towards building and running such orbital systems.

2. Starship Development: The next-generation rocket of SpaceX, which is meant to take humans to Mars, is called Starship, and it will need huge amounts of money spent on its research and development

3. Starlink Expansion: The satellite constellation needs continuous replenishment and expansion to maintain coverage and bandwidth.

4. AI Acquisition: SpaceX is reportedly exploring the acquisition of AI startup Cursor for $60 billion, a move that would significantly expand its AI capabilities.

The company has stated that going public now allows it to generate capital for what Musk describes as "a significant growth phase."

Trading Performance and Market Impact Post IPO

SpaceX's IPO had immediate ripple effects across financial markets:

• First trading day: Stock opened at $150, hit a high of $176.52, and closed at $160.95. More than 500 million shares traded during the day, with another 16 million exchanging hands in after-hours trading.

• Second trading day: Shares surged more than 6% in their first full trading day.

• Wall Street celebration: JPMorgan Chase held a celebratory event at its headquarters for SpaceX employees and executives, including a lighting display to commemorate the IPO.

The IPO was seen as a reassuring sign for Wall Street that the AI bull market may have plenty of runway left.

What This Means for Future IPOs

SpaceX's record-breaking IPO sets the stage for other mega-deals:

• OpenAI is expected to file within weeks, with a valuation of nearly $1 trillion.

• Anthropic confidentially filed on Monday, valued at $350 billion.

• SK Hynix is planning a $29.4 billion ADR listing on Nasdaq in July 2026.

The SpaceX IPO demonstrated that the market can absorb unprecedentedly large offerings when the story is compelling enough. It may also encourage other long-held private companies like ByteDance, Stripe, and Databricks to finally go public.

How to Invest in SpaceX (SPCX)

For investors looking to participate in SpaceX's public market journey:

Direct Stock Purchase: Since the IPO has already occurred, you can buy SPCX shares through any brokerage account that offers Nasdaq-listed stocks. The shares are fully liquid and trade like any other public stock.

For Indian Investors: If you have access to a U.S. brokerage account (through platforms like Vested, Interactive Brokers, or Indian brokers offering international investing), you can purchase SPCX shares. Keep in mind currency conversion fees, capital gains tax implications, and the lack of dividend income (SpaceX does not pay dividends).

Important Risks: SpaceX is currently unprofitable, has accumulated $41.3 billion in deficits, and trades at an extreme valuation. The stock is volatile (it moved between $150 and $176.52 on its first day alone). Only invest what you can afford to lose, and consider the stock as part of a diversified portfolio rather than a concentrated bet.

Conclusion: A New Era for Public Markets

The SpaceX IPO, worth $75 billion, was an inflexion point in history and not just a financial event. It showed that markets will assign trillions of dollars in valuation to life-altering technology despite billions of dollars in negative cash flows for the business. The markets' hunger for space technology, Artificial Intelligence, and visionaries appears to be endless.

For investors, SPCX represents either the opportunity of a lifetime or the ultimate bubble, depending on whether SpaceX can eventually convert its technological dominance into sustainable profitability. With $85.7 billion in fresh capital, Elon Musk's space empire now has the firepower to attempt its most ambitious projects yet, from orbital data centres to Mars colonisation.

The question for investors is no longer "Can SpaceX raise money?" The question is: Can SpaceX justify a $2 trillion valuation? The answer will shape the future of both Wall Street and humanity's presence in space.