Key facts
- SpaceX's IPO on Nasdaq saw shares jump 19% on debut.
- The company's market value exceeded $2 trillion, positioning it as the sixth-largest U.S. company.
- Elon Musk's net worth surpassed $1 trillion following the IPO.
- The debut generated record retail order activity.
- Trading systems successfully handled the high volume of client orders.
- The $75 billion IPO is the largest ever recorded.
SpaceX's landmark debut on the Nasdaq on Friday saw its shares jump 19%, pushing its market value past $2 trillion and making it the sixth-largest U.S. company. The $75 billion IPO, the largest ever recorded, generated significant retail investor interest, with over 510 million shares worth about $84 billion changing hands. Elon Musk became the world's first trillionaire as a result of his holdings in SpaceX, Tesla, and other ventures.
The smooth trading debut, which processed millions of client orders without the technical glitches that marred Facebook's 2012 IPO, has set a new template for future mega listings, including those anticipated for OpenAI and Anthropic later this year. Market participants, including banks, exchanges, and market makers, had extensively stress-tested their systems in anticipation of the record-breaking flotation.
Despite SpaceX's current unprofitability and a high price-to-revenue ratio, investors showed strong demand, with retail investors receiving a larger-than-typical allocation of 20%. Analysts noted the potential for volatility due to the company's valuation and relatively small float, but acknowledged the enthusiasm for investing in Musk's space and technology empire.
SpaceX executives, including President Gwynne Shotwell and CFO Bret Johnsen, celebrated the opening bell in New York, while Elon Musk hosted a separate event for employees in Texas.