SpaceX, the aerospace and AI giant founded by Elon Musk, has successfully completed what is being hailed as the largest initial public offering in history. The company priced its shares at $135 each, raising a record $75 billion and achieving a valuation of approximately $1.77 trillion upon listing under the ticker SPCX on Nasdaq and Nasdaq Texas on Thursday.
The stock started trading on Friday morning and rose by over 22% to reach $165. This valued the company at over $2 trillion, exceeding the market capitalisations of several other major companies. As a result of this valuation, Elon Musk has become the world’s first trillionaire.
Elon Musk and SpaceX President and COO Gwynne Shotwell rang the opening bell on Friday, with Musk in Texas and Shotwell at the Nasdaq in New York City.
The IPO, which saw overwhelming demand with orders far exceeding the shares on offer, marks a significant milestone for the company that began as a bold venture in 2002 with the dream of making humanity multiplanetary. SpaceX has transformed the space industry through reusable rockets, Starlink satellite internet serving millions of users, and lucrative government contracts. Despite reporting substantial operating losses in recent quarters, the company’s revenue reached $18.7 billion last year, driven largely by Starlink’s growth and launch services.
As trading commenced on 12 June, the debut propelled Elon Musk, who holds a substantial ownership stake in SpaceX alongside his interests in Tesla and other ventures, past the trillion-dollar net worth threshold. Musk is now recognised as the world’s first trillionaire, with his fortune estimated to exceed $1 trillion on paper, combining his SpaceX holdings valued at hundreds of billions with other assets. This achievement places his wealth above the gross domestic product of most nations and underscores the extraordinary rise of one of the most influential entrepreneurs of the era.
Notably, the second richest person in the world is Google founder Larry Page with around $300 billion, which means Musk is over three times richer than the second richest in the list.
The immense investor enthusiasm, with the offering being oversubscribed, and retail participation played a notable role in the stock’s success. Early employees and stakeholders are set to reap significant rewards, potentially creating thousands of new millionaires within the company.
Musk’s vision for SpaceX extends far beyond commercial success, encompassing ambitious goals such as human missions to Mars and further advancements in satellite technology. He said that he wanted to take SpaceX public now to raise capital for “a significant growth phase,” with plans to put over 100,000 satellites in orbit for communications and to build artificial intelligence data centres in space, among other initiatives.
The public listing is expected to provide the company with substantial capital to fuel these initiatives while subjecting it to greater market scrutiny and transparency requirements.
