SpaceX surged over 20 per cent in its Nasdaq debut on Friday, pushing the rocket company’s valuation exceeding USD 2 trillion as investors rushed into what has been billed as the and placed a fresh bet on Elon Musk’s growing business empire.
Shares opened at USD 150, well above the IPO price of USD 135, easing concerns that the blockbuster listing could stumble on its first day of trading.
The debut is being closely watched on Wall Street, with bankers and investors viewing it as a key test for the broader IPO market. A weak performance could have dampened enthusiasm for upcoming public offerings, while a strong start is expected to boost confidence ahead of potential listings by AI firms such as Anthropic and OpenAI.
Market watchers are also treating the offering as a referendum on the so-called “Musk premium” – the investor enthusiasm that has helped drive valuations of Musk-led companies despite questions over profitability and his increasingly prominent political role in President Donald Trump’s administration.
The successful listing cements and places SpaceX among the most valuable companies globally. The valuation comes despite the company reporting a loss of nearly USD 5 billion last year and generating far less revenue than many technology firms with comparable market capitalisations.
“I gave SpaceX a 10 per cent chance of succeeding at all,” Musk said in Texas shortly before trading began.
SpaceX President Gwynne Shotwell and Chief Financial Officer Bret Johnsen rang the Nasdaq opening bell at 9:30 am (ET).
Founded in 2002, SpaceX has grown into a dominant force in commercial space launches, satellite communications and space exploration. Investors betting on the company are also wagering on the future potential of its Starlink satellite internet business and broader ambitions in artificial intelligence and advanced technology.
The stock’s first-day performance is expected to set the tone for a new wave of mega-listings and offer an early indication of investor appetite for high-growth technology companies returning to public markets.
The record-breaking IPO marks the culmination of ‘s long-standing ambitions in space and technology, while also rewriting Wall Street’s traditional IPO playbook and attracting a wave of retail investors. SpaceX’s valuation could climb even further if underwriters exercise their option to sell additional shares over the next 30 days.
While the company may have to wait before joining the S&P 500, it is expected to be fast-tracked into the Nasdaq 100 under the exchange’s new listing rules, potentially within a month rather than the usual wait of up to a year. Such an inclusion would make SpaceX a major holding for index-tracking funds and ETFs, creating an additional source of demand for its shares.
Analysts also expect the stock’s debut to trigger a reshuffling of investor portfolios, with some funds potentially reducing exposure to other technology giants to make room for SpaceX.
Reflecting that trend, shares of Tesla, another Musk-owned company, traded lower on Friday, slipping about 0.6 per cent to around USD 391 during the session as investor attention shifted to SpaceX’s blockbuster Nasdaq debut.
SpaceX has told investors its addressable market spans USD 28.5 trillion, which it describes as the largest commercial opportunity in human history. Backed by its dominant position in the space industry, accounting for more than 80 per cent of the mass launched into orbit over the past three years, according to the company.
With growing revenues from its Starlink satellite internet business, many investors believe SpaceX is well positioned for long-term growth.