Company's Stock Opens Up 11% in Biggest-Ever Public Offering
Variety • • business
Key Points:
- SpaceX debuted on the Nasdaq with an IPO price of $135 per share, quickly rising to $174, giving the company a market valuation exceeding $2 trillion and raising about $75 billion.
- Elon Musk, founder and CEO of SpaceX, became the world’s first trillionaire with his net worth soaring to approximately $1.1 trillion following the IPO.
- Musk retains over 82% voting control of SpaceX but is restricted from selling shares for one year post-IPO.
- Despite strong investor demand, analysts like Morningstar have raised concerns about SpaceX’s high valuation, estimating a fair value of $63 per share and highlighting risks tied to unproven technologies and ambitious growth forecasts.
- SpaceX’s IPO valuation is significantly higher than other tech giants, with a price-to-revenue ratio of 94x, and its AI segment, including X, reported substantial operating losses and increased capital expenditures in recent years.