Key facts
- SpaceX shares continued to trade higher on their second day after the IPO.
- Elon Musk's net worth reached $1.27 trillion following a rally in SpaceX shares.
- SpaceX shares were up 10.1% premarket Tuesday, aiming to surpass Amazon's market value.
- More than $1.16 billion worth of SpaceX shares exchanged hands as of 04:14 a.m. ET.
- SpaceX's IPO raised $75 billion, marking the largest in history.
SpaceX shares continued their upward trajectory for a second consecutive day following a blockbuster initial public offering, pushing Elon Musk's personal fortune to a record $1.27 trillion. The single-day gain of $164 billion alone surpassed the entire net worth of billionaire investor Warren Buffett.
The rally in SpaceX shares, which closed at $192.46 on Monday, a 19.6% increase on their second day of trading, has been fueled by optimism surrounding the company's future prospects. Musk's ambitious projection of $1 trillion in annual revenue by 2030, despite the company's current lack of profitability, has captured market attention. Musk's substantial 38% equity stake in SpaceX, comprising approximately 4.8 billion shares and 350 million stock options, is the primary driver of his unprecedented wealth.
The company's IPO, which raised $75 billion by selling 555.56 million shares at $135 each, is the largest in history. Despite the significant gains, analysts are cautioning investors to brace for heightened volatility due to SpaceX's relatively small float and stretched valuation. However, anticipated fast-track inclusion into major indexes like the Nasdaq 100, FTSE Russell, and MSCI is expected to drive further institutional demand.