On June 12, SpaceX made Wall Street history with the largest IPO ever, raising over $75 billion and instantly reaching a market valuation of nearly $2 trillion. Elon Musk’s aerospace and AI powerhouse became one of the world’s top publicly traded companies overnight, marking a seismic shift in tech finance.
Notably, SpaceX’s inclusion of Musk’s AI venture xAI makes this the first major AI company to go public-beating rivals like OpenAI and Anthropic to the stock exchange. Fueled by keen retail investor interest after a long IPO drought, SpaceX shares surged 19% on day one, climbing from the initial $135 offering price to $161.
Elon Musk becomes first trillionaire with soaring SpaceX and Tesla stakes
Musk has become the world’s first person with a net worth surpassing $1 trillion, a milestone that is as volatile as the stock market itself. After the IPO, his wealth peaked at $1.32 trillion before dipping below $1 trillion during a market correction on June 23. By the end of June, Musk reclaimed his trillionaire status thanks to the rebound in SpaceX and Tesla share prices.
His fortune is tied mostly to stock holdings in SpaceX and Tesla, along with valuable physical assets: Starlink satellites, rockets, AI data centers, Musk’s social network X, Tesla vehicles, solar panels, and Optimus robots. Musk’s visionary reputation borders on cult-like, although many of his grand promises-from colonizing Mars to fully autonomous cars and home robots-have faced repeated delays.
SpaceX shares show rollercoaster start with record highs
After an explosive debut, SpaceX shares showed significant volatility. They hit a record high of $225.64 on June 16 before retreating to $154 by June 22. By the month’s end, the price stabilized around $170. Despite the swings, SpaceX quickly secured its place as one of the two most actively traded stocks on the market.
Musk’s control: 42% equity and 85% voting power
While Musk owns roughly 42% of SpaceX’s shares, his influence extends far beyond that due to special voting rights that give him control over 85% of voting power. In contrast, tech founders like Mark Zuckerberg own 13% of Meta, and Sergey Brin holds 6% of Alphabet. Many pioneers such as Bill Gates and Peter Thiel have fully exited their companies.
Retail investors receive rare 30% share amid high risks
SpaceX allocated 30% of shares to retail investors-triple the common 10% allocation-signaling a bold move to attract ordinary investors. However, analysts warn this could indicate weak demand from institutional players. Consequently, less-experienced investors shoulder most of the volatility risk. Demand during the IPO outstripped supply, meaning many retail buyers received fewer shares than they hoped.
SpaceX’s 2025 financials: $18.5 billion revenue with a $5 billion loss
SpaceX’s financials reveal a company investing heavily to secure its future leadership. The company generated more than $18.5 billion in revenue last year but ended with nearly $5 billion in net losses. The main drivers were $13 billion invested in chips and data centers for xAI, plus $6.6 billion in depreciation on rockets and satellites.
Investors are betting on SpaceX as a future sector leader despite the negative cash flow. This gap between financial reality and market optimism typifies the tech industry’s focus on tomorrow’s potential, especially in AI, where promises often outpace profits.
OpenAI delays IPO to 2027 after Musk’s dominating SpaceX debut
SpaceX’s record-breaking IPO appears to have shifted OpenAI’s plans. According to The New York Times, OpenAI CEO Sam Altman had eyed a 2024 IPO valuation near $1 trillion but now likely will push the offering to 2027. Advisors caution that OpenAI lacks the marketing punch Musk’s name brought to SpaceX and may struggle to excite institutional investors in a volatile climate.
What sets an IPO apart from regular stock trading?
An IPO (initial public offering) is when a company sells shares to the public for the first time. Before this, a company is private and inaccessible to ordinary investors. After the IPO, shares trade freely on the stock exchange, allowing anyone with a brokerage account to buy them. The key difference is the transition from private ownership to public trading.
Why is SpaceX unprofitable despite $18.5 billion in revenue?
SpaceX’s expenses exceed its revenue because it is aggressively investing in building data centers and acquiring chips to support xAI, along with substantial depreciation costs on its aerospace assets. This is common for tech firms in growth mode, which often reinvest heavily to build future profits instead of generating immediate earnings.
When is OpenAI going public, and what will it mean for AI?
OpenAI’s IPO is now expected in 2027. When it finally happens, it will be the biggest AI market event since SpaceX’s debut. OpenAI benefits from a recognizable consumer brand with ChatGPT but, like SpaceX, operates at a loss and will need to convince investors of its long-term growth prospects.
*Meta, the parent company of Facebook, is labeled an extremist organization and banned in Russia.
While SpaceX’s IPO has set an unprecedented benchmark for aerospace and AI combined, it raises questions about how future tech IPOs will perform without Musk’s charismatic influence. The company’s immense valuation also puts pressure on SpaceX to deliver on its ambitious promises beyond the hype. Watching its financial discipline, market behavior, and competitive positioning will be crucial for investors and industry watchers alike.