SpaceX set to begin trading after raising $75 billion in record IPO

SpaceX, Elon Musk’s renowned rocket and satellite company, is poised to make its Wall Street debut on Friday after completing the largest initial public offering in history. The company priced its shares at $135 each, raising a staggering $75 billion to fund its ambitious plans, including establishing a human colony on Mars and deploying solar-powered data centers in space.

Trading under the ticker symbol “SPCX” on the Nasdaq Stock Exchange, SpaceX’s IPO surpasses the previous record set by Saudi Aramco, raising nearly $26 billion in 2019. The IPO has garnered significant interest from investors, with over $100 billion in retail orders and strong exposure to businesses beyond rocket launches, such as Musk’s xAI artificial intelligence company and satellite internet provider Starlink.

With a market valuation of $1.77 trillion, SpaceX is now one of the most valuable companies on Wall Street. However, despite its high valuation, the company lags behind tech giants like Alphabet, Apple, and Nvidia in terms of revenue and profitability. SpaceX, which is currently unprofitable, generated $18.7 billion in revenue last year, significantly lower than Alphabet’s $400 billion in sales.

Elon Musk, already the world’s richest person, has become a trillionaire on paper following SpaceX’s IPO. With a 42% stake in the company and significant voting power, Musk will continue to exert control over SpaceX’s future. The company’s shares are expected to be included in various indexes, potentially attracting more investors, including those with 401(k) plans.

SpaceX, which filed for a confidential IPO in April, sees a market opportunity exceeding $28 trillion across its operating industries. The company places a significant emphasis on its AI capabilities, with xAI accounting for 90% of the market opportunity according to financial analyst Van Ha Trinh. This highlights SpaceX’s belief that AI will drive its future growth.

In conclusion, SpaceX’s IPO marks a significant milestone in the company’s journey and presents a unique investment opportunity for those looking to be part of the space exploration and technology sector. With Musk at the helm, SpaceX’s future looks promising as it continues to push the boundaries of innovation and exploration in the space industry.