SpaceX (ticker: SPCX) began trading on public markets today, June 12, following a landmark initial public offering that raised $75 billion and valued the aerospace and satellite internet company at $1.75 trillion. The debut places SpaceX among the seven most valuable U.S. companies, just ahead of Tesla.
The IPO allocated roughly 30% of the float to retail investors, while existing shareholders face lock-up restrictions expected to limit early selling pressure. Analysts anticipate a sharp initial rally, a pattern typical of high-profile listings, though sustaining those gains has historically proven challenging for similarly hyped debuts.
Valuation Under Scrutiny
Not all market observers are convinced the price tag is justified. David Morrison, Senior Market Analyst at Trade Nation, argued on the Zero Sum podcast that investors are paying a steep premium. "I think it's overvalued... I think you're paying too much on the opening basis," he said.
Morrison referenced Morningstar's assessment, which placed SpaceX's fair value at approximately $780 billion — less than half the IPO valuation. Much of the gap is attributed to the valuation assigned to xAI, Elon Musk's artificial intelligence venture, which was valued at $250 billion when it was folded into SpaceX not long ago.
Governance Concerns: Musk's Dominant Control
The offering structure has also drawn scrutiny. Musk will retain 42% of equity alongside Class B super-voting shares, giving him 85% of total voting power — a level of control Morrison described as leaving little room for shareholder influence. "It's an impossibility. It's his company now," he noted, though similar structures have been used by Meta, Alphabet, and Snap at the time of their listings.
Starlink Anchors the Business, xAI Remains a Question Mark
SpaceX's commercial strength largely stems from Starlink, its satellite internet division, which served over 9 million users and generated $15–16 billion in revenue last year with $4.4 billion in operating income. By contrast, xAI generated $818 million in revenue in the first quarter of 2026 but posted losses of nearly $2.5 billion in the same period — losses Morningstar described as carrying an "indeterminate" economic moat.
The IPO has also raised questions about the blending of commercial markets with national security interests, given SpaceX's extensive government and defense contracts alongside Starlink's growing role in critical infrastructure, including aviation connectivity.
Market Context and Broader Implications
SpaceX's debut comes against a broader market backdrop that Morrison flagged as worth watching, pointing to a strengthening U.S. dollar and what he sees as overvalued U.S. tech stocks heading into the second half of the year. For investors comparing opportunities, some analysts suggest Nokia Stock: A Disciplined AI Infrastructure Play vs. SpaceX's Hype-Driven Valuation as a more conservative alternative.
The listing caps a dramatic transformation for SpaceX, which began as a rocket maker known for early public launch failures and has since grown into a business spanning satellite internet, defense contracts, and now a public company that has captivated markets far beyond the aerospace sector. For a deeper breakdown of the IPO structure, the bull and bear cases, and what it could mean for retail investors, watch the full episode of Zero Sum, available now on YouTube and Spotify.
This article is for informational purposes only and does not constitute financial advice.
