SpaceX soars 23% in Wall Street debut and makes Elon Musk the first trillionaire
SpaceX shares surged 23% in their Wall Street debut, reaching $166.90 and valuing the company at $2.18 trillion, making CEO Elon Musk the first trillionaire with a net worth estimated at $1.1 trillion. The $75 billion IPO proceeds exceeded Saudi Aramco’s 2019 record, but analysts like Morningstar called the valuation 'significantly overvalued' due to SpaceX’s losses and unproven technology, estimating its worth at $780 billion.
SpaceX’s shares jumped 23% on their Nasdaq debut, opening at $150 and peaking at $166.90, giving the company a $2.18 trillion valuation. The IPO raised $75 billion—more than Saudi Aramco’s 2019 record—after institutional and retail investors bought 555.6 million shares at $135 each. Forbes now estimates Elon Musk’s net worth at $1.1 trillion, making him the first trillionaire. The company cited funding needs for Mars colonization, satellite networks, and orbital data centers as reasons for going public. Musk, who rang the Nasdaq bell from SpaceX’s Starbase facility in South Texas, reiterated goals to make life multi-planetary, targeting a one-million-person Martian colony. However, SpaceX reported $8.7 billion in losses from early 2025 to March 2026, raising concerns about its financial sustainability. Analysts at Morningstar criticized the valuation, calling it 'significantly overvalued' and estimating SpaceX’s worth at $780 billion—less than half its IPO price. They cited unproven technology and massive capital requirements as risks. Despite skepticism, Wall Street bankers backing the IPO stand to earn large fees, and Nasdaq fast-tracked SpaceX’s inclusion in indexes, allowing earlier investor exposure. Musk’s fortune stems from earlier ventures like Zip2 and PayPal, which he sold for $200 million to fund SpaceX and Tesla. His wealth remains tied to performance-based stock grants, with Tesla shares alone contributing over $1.2 trillion in shareholder returns since its 2010 IPO. Critics note his divided focus across companies and regulatory clashes, though Tesla’s stock surge has overshadowed past controversies. SpaceX is the first of three 'megacap' companies set to go public this year, with Anthropic and OpenAI following. The IPO underscores Musk’s ambition to merge space exploration with AI and orbital infrastructure, though its long-term profitability remains uncertain. Investors are betting on SpaceX’s growth potential, despite its history of delays and financial volatility.
This content was automatically generated and/or translated by AI. It may contain inaccuracies. Please refer to the original sources for verification.