SpaceX launches the largest IPO in history: $75 billion

What happened?

SpaceX, the space exploration company founded by Elon Musk, debuted today on Nasdaq with the largest Initial Public Offering (IPO) in history. According to Crunchbase News, the company raised approximately $75 billion, with a valuation close to $1.8 trillion. The IPO was conducted at a fixed price of $135 per share, an unconventional approach that contrasts with the traditional method of price discovery through demand.

SpaceX, which had raised nearly $12 billion in private funding since its founding in 2002, thus becomes the most valuable venture capital-backed startup in the world. The company reported net losses of $4.28 billion in the first quarter of 2026, a 700% year-over-year increase, while revenue was $4.69 billion, up 15% from the previous year. Despite not being profitable, the IPO values SpaceX at 94 times its revenue.

To put it in perspective, SpaceX's IPO is more than ten times larger than Facebook's in 2012, which raised $104 billion. It also far surpasses Alibaba's IPO in 2014 ($250 billion) and Saudi Aramco's in 2019 ($294 billion). The $1.8 trillion valuation places SpaceX behind companies like Apple and Microsoft but ahead of giants like Amazon and Alphabet.

Why is it important?

This IPO is historic not only for its size but for what it represents. SpaceX has redefined the space industry, demonstrating that a private company can lead space exploration and transportation, competing with government agencies like NASA. The public listing also represents a massive liquidity event for Elon Musk, who according to Forbes could become the world's first trillionaire. His friend and confidant Antonio Gracias of Valor Equity Partners would hold shares valued at $68 billion, according to the Wall Street Journal.

For institutional investors like Google, Andreessen Horowitz, Sequoia Capital, Craft Ventures, and Founders Fund, the IPO represents a massive and successful exit. The fact that SpaceX opted for a fixed price, rather than a demand-based range, challenges market conventions and could influence future IPOs. This method recalls Google's IPO in 2004, which also used a Dutch auction, though with less immediate success.

The historical context is relevant: the last major tech IPO was Uber's in 2019, which raised $81 billion but had a disappointing debut. SpaceX, in contrast, arrives with a loyal investor base and a diversified business that includes rocket launches, the Starlink network, and government contracts.

What consequences will it have?

SpaceX's IPO could catalyze a wave of public listings by high-profile tech companies. Anthropic and OpenAI, two generative AI giants, are also expected to go public in the coming months. SpaceX's valuation, based on future expectations rather than current profitability, could fuel a debate about tech bubbles, similar to the dot-com bubble of the late 1990s. However, SpaceX has real revenue and long-term contracts, distinguishing it from many companies of that era.

On the other hand, the influx of fresh capital will allow SpaceX to fund ambitious projects like Starship, its next-generation reusable rocket, and expand Starlink, its satellite internet network. Starlink already has over 5 million subscribers and generates recurring revenue, providing a solid foundation. Additionally, SpaceX has contracts with NASA worth billions for cargo and crew missions.

For retail investors, SpaceX stock offers an opportunity to participate in a company that has transformed the space industry, but with significant risks due to its lack of profitability and high valuation. Analysts recommend caution, as the $135 per share price could be volatile. Companies like Tesla, also led by Musk, have shown high volatility in their early stock market days.

What should readers know?

SpaceX is not a conventional company: it is not profitable, has growing losses, and its valuation is astronomical. However, its dominance in the space sector, its contracts with NASA, and the success of Starlink give it unique growth potential. The IPO is a milestone reflecting market confidence in Elon Musk's vision, but it also raises questions about the sustainability of such high valuations for unprofitable companies. Readers should watch the stock's performance and SpaceX's next moves in the public market.

Compared to other recent tech IPOs, such as Coinbase in 2021 (valuation of $100 billion) or Rivian (valuation of $100 billion), SpaceX stands out for its size and impact on a strategic industry. The company also faces regulatory and competitive risks, especially from companies like Blue Origin and the Chinese Space Agency.

In summary, SpaceX's IPO is a transformative event that could redefine the capital market and the space industry. Investors should weigh growth potential against financial risks and be prepared for possible short-term volatility.