SpaceX IPO: Gravity Wins as Share Prices Face Atmospheric Re-Entry After Lunar Surge

Written by James Fonzi, CFA®

The launch of the SpaceX (SPCX) IPO on June 12th marked the largest capital raise in history and likely  the most anticipated as well. While the merging of business lines sounds more like a product of a  Sci-Fi film than a multi-trillion-dollar company, the segue into public markets created a trifecta of  frontier technology blending aerospace infrastructure, global satellite telecommunications, and  frontier artificial intelligence. One could dedicate an entire essay to unpacking the technicalities of  this offering and the business itself, but for now, we will stick to the basics. 

The Largest Capital Raise in Public Markets in History 

• Shares were priced to the public at $135 per share on June 12th 
• The issuance of approximately 555.6 million shares raised approximately $75 billion marking  the largest capital raise via IPO in history, surpassing Saudi Aramco’s $29.4 billion IPO in 2019  • Shareholders that were allocated at the IPO price saw a 19% return at the close on the first  day of trading 
• The IPO drew more than $350 billion in demand from institutions and retail investors, with  retail traders delivering more than $100 billion of demand (only 30% of which was allocated) 

A Trillion-Dollar Valuation and Re-Entry Back to Earth 

• Shares surged as much as 31% on the first day of trading and the company ended the first  day of trading with a Market Capitalization of $2.2 trillion 
• This valuation made SpaceX the sixth-highest valued public company in the world • Prices briefly reached $225 in the first week of trading boasting an intraday market cap of  nearly $3 trillion, surpassing both Amazon and Microsoft 
• There has since been a sharp reversal and increased volatility since, with shares trading  between $150 and $155, wiping out almost $1 trillion in shareholder equity in the span of  two weeks 

So, what is the Growth Narrative? 

• As mentioned earlier, SpaceX is a three-pronged conglomerate 
• Key business lines are centered on Launch Infrastructure, Starlink, and Artificial Intelligence  with Starlink currently the primary cash flow generator which is also seen as a cash buffer to  invest in space exploration, a capital-intensive endeavor 
• SpaceX absorbed Elon Musk’s xAI venture in February, helping to capture the gen-AI premium  that continues to prevail in public markets 

Offering Structure 

• The deal itself was non-traditional and designed to protect insider voting control while  accommodating index inclusion and retail demand
• Dual-Class Equity Structure with Chass A Shares (what we all can buy) were issued via the  IPO and carry 1 vote per share while Class B Shares were retained by Musk and insiders, each  carrying 10 votes per share 

While this is undoubtedly an exciting milestone for the capital markets, it is critical to inject some  structural perspective. Caution is warranted. Companies with negative net income tend to lag by  more than 10% over the first 18 months after their listing compared with profitable peers – SpaceX  posted a net loss of $4.28 billion in the first quarter of 2026 alone. Forward earnings expectations  continue to buoy broader equity valuations, but speculative mega-caps like SpaceX are historically  the first to experience capital flight when markets draw down. Long-term, it looks wise not to bet  against the operational execution of Elon Musk. In the near term, however, it is probably best we all hold off on purchasing those tickets to Mars. 

Sources: Bloomberg, Charles Schwab