SpaceX surges over 20% in Nasdaq debut, valuation tops $2 trillion in record IPO

SpaceX made a powerful market entrance on Friday, surging more than 20 percent in its Nasdaq debut and pushing its valuation beyond $2 trillion as investors rushed into what has become the world’s largest initial public offering.

Shares opened at $150, well above the IPO price of $135, before climbing further to around $164 in early trading. The rally briefly positioned the company among the top tier of US corporates by market capitalisation, reflecting intense investor appetite for Elon Musk’s expanding technology empire spanning rockets, satellites, and artificial intelligence.

The listing, widely described as a test case for future mega-IPOs, is being closely watched by market participants assessing demand ahead of expected offerings from major AI firms including Anthropic and OpenAI. Analysts say the strong debut could reinforce confidence in large-scale listings after a period of uncertainty in IPO markets.

The deal itself has already set records, raising $75 billion—more than double Saudi Aramco’s previous record IPO in 2019. It also carries implications for index flows, with expectations that SpaceX will eventually be added to the Nasdaq 100 under fast-track inclusion rules, potentially driving additional passive fund inflows.

Investor sentiment around the stock has also revived debate over the so-called “Musk premium,” which has long supported elevated valuations across Musk-led companies such as Tesla, even amid concerns over profitability and governance risks. SpaceX, despite reporting nearly $5 billion in losses last year, generated $18.7 billion in revenue in 2025, placing its valuation at a price-to-revenue multiple of about 94.

Company leadership marked the debut with SpaceX President Gwynne Shotwell and CFO Bret Johnsen ringing the Nasdaq opening bell at 9:30am ET (1330 GMT). Elon Musk, speaking ahead of trading, downplayed expectations, saying he had only given the company a 10 percent chance of success at its inception.

Market enthusiasm is being driven by expectations around long-term growth in space infrastructure and Starlink services, with SpaceX estimating a potential $28.5 trillion addressable market. Supporters argue its dominance in orbital launches—accounting for more than four-fifths of payload mass over the past three years—positions it strongly against emerging competitors such as Blue Origin.

However, analysts remain divided on valuation. While some see long-term parallels with disruptive tech platforms, others note that Morningstar has suggested a fair value closer to $780 billion, underscoring the gap between fundamentals and current market pricing.

Despite the risks, early trading indicates strong demand from both institutional and retail investors, with the debut widely viewed as a signal of renewed appetite for high-growth, high-risk technology listings in global markets.