SpaceX's initial public offering has generated extraordinary investor demand, with orders exceeding $250 billion for the $75 billion share sale, according to Reuters. The company plans to list its Class A common stock on the Nasdaq under the ticker SPCX at an offer price of $135 per share, valuing the company at approximately $1.75 trillion.
IPO Details and Oversubscription
The offering is roughly 3.5 to 4 times oversubscribed, with bookrunners reporting more than $250 billion in orders. Allocations have not been finalized, and demand could shift before the books close. SpaceX intends to sell 555,555,555 shares, with underwriters having the option to purchase an additional 83,333,333 shares within 30 days. Trading is expected to commence on Friday, with pricing anticipated later Thursday.
Financial Performance and Risks
SpaceX reported 2025 revenue of $18.67 billion, a 33% increase year-over-year, with Starlink contributing about 60% of sales and serving 10.3 million users via 9,600 satellites. However, the company posted a net loss of $4.94 billion in 2025, compared to a $791 million profit in 2024, largely due to the merger with loss-making xAI. At $135 per share, SpaceX trades at approximately 94 times trailing revenue, a valuation metric used when profits are negative.
Valuation Debate
The valuation has sparked debate. Jim Chanos, the short seller known for predicting Enron's collapse, stated at an iConnections event in New York that the company is not worth $1.75 trillion, citing a price-to-sales ratio nearly 90 times, higher than Tesla's. He described the IPO story as built on "hopes and dreams."
Growth Drivers and AI Ambitions
SpaceX is positioning itself as a growth tech firm rather than a traditional aerospace contractor. The company's Falcon 9 rocket, with its reusable design, has enabled over two launches per week. The Starship rocket, capable of lifting over 100 metric tons to low Earth orbit, is central to plans for cheaper launches, larger satellite constellations, and eventually building AI data centers in space. However, xAI lags behind competitors like Anthropic and OpenAI in business adoption, which could weigh on the tech-style valuation.
Institutional Interest
Franklin Templeton, which manages about $1.7 trillion, already holds SpaceX shares and plans to participate in the IPO, CEO Jenny Johnson told CNBC. The IPO is also a systems test for Wall Street, with Nasdaq, Citadel Securities, and Jane Street conducting simulations to prevent a repeat of Facebook's 2012 trading meltdown. Morgan Stanley is expected to act as stabilization agent.
Risks and Governance
Key risks include delays in Starship development, cost overruns for orbital AI data centers, and xAI's cash burn amid intense competition. Governance concerns also arise, as Elon Musk will retain control through a special class of shares. SpaceX's own filings warn that buying shares carries significant risks, including the potential loss of the entire investment.
The first trading day on Friday will be closely watched. Nasdaq has adjusted its rules to allow certain companies to join the Nasdaq-100 after just 15 trading sessions, while S&P Dow Jones maintains its 12-month trading history requirement for S&P 500 inclusion. The opening price will signal how much the public market values the SpaceX story from the outset.
