Key facts
- SpaceX shares closed up 19.2% on their Nasdaq debut.
- The IPO priced shares at $135 each, valuing the company at approximately $1.75 trillion.
- The IPO raised $75 billion.
- Access to SpaceX's IPO marketing materials was restricted in Hong Kong and mainland China.
- Asian investors are seeking exposure through ETFs and supply chain partners due to IPO access limitations.
- SpaceX's future growth is heavily reliant on its expansion into Asian markets.
Shares in Elon Musk's SpaceX closed up 19.2% on their Nasdaq debut Friday, following an initial public offering that priced stock at $135 apiece and gave the company a roughly $1.75 trillion valuation. The blockbuster IPO, which raised $75 billion, saw significant interest from both institutional and retail investors.
However, the company's long-term valuation hinges on its ability to expand in Asia, a market where access to the IPO was restricted for many retail investors due to regulatory limitations and inaccessible marketing documents in mainland China and Hong Kong. This has led traders to seek out proxy plays, such as ETFs and supply chain partners like Sunway Communication and Western Superconducting Technologies, which have seen significant share price increases.
Lens Technology, a supplier to Apple and Tesla, also experienced a nearly 50% surge this year after flagging commercial space as a growth driver, partly fueled by its chairman's presence at a Beijing banquet with Elon Musk and U.S. President Donald Trump. Several Taiwanese suppliers to SpaceX have also seen their shares double or triple.
Globally, space-themed ETFs and related companies have also benefited, with the Tema Space Innovators ETF up 29% since its March launch. Despite the initial market enthusiasm, some analysts, like David Trainer of New Constructs, express a contrarian view, citing concerns about SpaceX's valuation, debt, and the costly AI race, arguing that the company's corporate governance structure, heavily favoring Musk, also presents risks.