Blockbuster IPO — Should You Invest in SpaceX on the First Trading Day?

What Is SpaceX?

Space Exploration Technologies Corporation — known to the world as SpaceX — is arguably the most ambitious company in history. Founded in 2002, it set out to do something most people thought was impossible: make space travel cheap, reusable, and routine. More than two decades later, it has done exactly that, and then some.

SpaceX is no longer just a rocket company. Today it operates three distinct business lines:

Space — the original launch business, built around the workhorse Falcon 9 rocket and the next-generation Starship vehicle. SpaceX now commands over 80% of the global commercial launch market, completing 170 missions in 2025 alone, with long-term contracts spanning NASA, the Pentagon, and commercial satellite operators worldwide.

Starlink — the satellite internet constellation that has quietly become SpaceX's biggest revenue engine. With over 7,500 satellites in low Earth orbit and 10.3 million subscribers as of March 2026, Starlink generated US$11.4 billion in revenue in 2025 — about 61% of the company's total. Its EBITDA margin has expanded from 41% in 2023 to 63% in 2025, a figure that would make most established tech companies envious. Many airlines, including Emirates, Qatar Airways, United Airlines, and American Airlines, have signed up for or are already using Starlink's broadband for their passengers. Singapore Airlines (SIA) will introduce Starlink broadband to selected aircraft from the first quarter of 2027, with a full rollout to be completed by end of 2029.

SpaceXAI — the newest and most controversial division, created after SpaceX absorbed Elon Musk's xAI company in an all-stock deal in February 2026, valued at approximately US$250 billion. This unit owns the Grok AI model, the X social media platform, and a growing AI compute footprint. It is also, by the company's own admission, burning through roughly US $1 billion per month.

In total, SpaceX reported US$18.7 billion in revenue for 2025 — a 33% increase year-on-year — with US$4.7 billion generated in Q1 2026 alone.

The Man Behind It: Elon Musk

Love him or loathe him, Elon Musk is in a category of his own. Many consider him the defining entrepreneur of our era — a builder who takes on the projects that most people dismiss as science fiction, then actually delivers them. Elon Musk is very likely to become the world's first trillionaire (1,000 times a billionaire) after the SpaceX IPO.

Today, beyond SpaceX, Musk leads or co-leads a remarkable portfolio of ventures.

Tesla has reshaped the global auto industry, leading the shift to electric vehicles and pushing the frontier of autonomous driving and battery energy storage.

Neuralink, his neurotechnology company, is developing brain-computer interface chips — surgically implanted devices that allow people with paralysis to control computers and mobile devices through thought alone, with over 20 human patients enrolled in clinical trials as of early 2026, and a longer-term vision of merging human cognition with AI.

The Boring Company is building underground tunnel networks to solve urban traffic congestion, most notably the Vegas Loop — a planned 68-mile tunnel system beneath Las Vegas that already carries passengers in Teslas between convention centers, resorts, and the airport.

In SpaceX specifically, Musk holds 42% equity and controls 85% of the voting rights. Even after the IPO, he will retain near-total authority over the company's direction. His lofty goal has never changed: to establish a self-sustaining human colony on Mars. The Starship rocket is the vehicle built to get us there.

The IPO: What We Know

SpaceX's IPO is set to be the largest in history.

Key terms as of June 3, 2026:

• Ticker: SPCX (Nasdaq)
• IPO Date: June 12, 2026
• IPO Price: US$135 per share (fixed)
• Shares Offered: 555.6 million Class A shares
• Total Raise: US$75 billion (plus an underwriter option for an additional US$11.2 billion)
• Valuation: approximately US$1.77 trillion
• Retail Allocation: 30% of the float — three times the standard for a deal this size

Note: FSM will not be offering IPO subscription, but shares will be available to trade at prevailing market price once listed on Nasdaq.

At US$75 billion raised, SpaceX will comfortably surpass Saudi Aramco's US$29 billion listing in 2019 as the biggest public offering ever. At US$1.77 trillion, it would debut as the seventh-largest company in the US — ahead of both Berkshire Hathaway and Tesla.

The bull case is that you are buying the infrastructure of the next century. The bear case is that you are paying a price-to-sales ratio north of 90x for a loss-making company with a controlling shareholder who answers to no one.

What Should Investors Watch Out For?

*Above screenshot is taken from X platform. It may contain errors in the data collection. Please perform your own due diligence and do not take the above as fully factual

Historical IPO data tells a humbling story. Returns in the first week, month, and three months after listing are deeply mixed — and many high-profile names that debuted to euphoria went on to suffer drawdowns of 50% to 90% within their first year. The lesson is straightforward: excitement is not a valuation method.

A few principles worth keeping in mind:

You don't have to be there on day one. The company will still exist in six months, a year, and a decade. Waiting for post-IPO volatility to settle, for lock-up expirations to pass, and for a clearer picture of the AI division's trajectory may prove a far more rewarding strategy than chasing the opening price.

The lock-up expiry matters. Most insiders are restricted from selling for 180 days after listing. When that window opens, selling pressure can push prices lower — sometimes significantly. SpaceX has indicated it may allow some shares to become eligible for resale earlier than the standard period, which is worth monitoring closely.

Valuation discipline is everything. Extraordinary companies can still be poor investments at the wrong entry price. Study the numbers, understand what growth rate the current price already assumes, and resist the pull of narrative over fundamentals.

Final Thought

SpaceX is, by any measure, one of the most extraordinary companies of our era. It has achieved things that governments with far greater resources could not, and it is now opening its doors to retail investors for the first time.

But extraordinary companies can still be poor investments at the wrong price — and IPO day is rarely the best price you will ever see.

Approach this listing with clear eyes. Understand the business, study the financials, respect the risks, and size your position accordingly.