SpaceX Shares Rise 6% After Record IPO as Valuation Questions Mount

SpaceX stock rose about 6 percent in premarket trading Monday, reaching near 170 dollars per share after closing at 161 dollars on Friday. The company priced shares at 135 dollars for its Nasdaq debut, which produced a 19 percent first-day gain and pushed market capitalization above 2 trillion dollars. That figure exceeds the valuation of Tesla, another Elon Musk-led enterprise now at roughly 1.52 trillion dollars.

The offering marked the largest initial public offering on record. SpaceX operates the Starlink satellite network and a fleet of reusable launch vehicles. In February the firm completed its merger with Musk's artificial intelligence venture xAI. Revenue from satellite services and launch contracts has expanded rapidly, yet the company posted losses near 5 billion dollars for 2025.

Analysts offered sharply different assessments of whether current pricing reflects underlying performance. CFRA assigned a sell rating with a 12-month target of 115 dollars, citing aggressive expansion plans, heavy capital requirements, and elevated expectations. Morningstar placed fair value at 63 dollars and labeled the shares overvalued. NewStreet Research countered with a 165-dollar target, reflecting optimism about future growth in satellite broadband and space transport.

Capital spending underscored the scale of commitments. Outlays reached 10.1 billion dollars in the first quarter, more than double the 4.1 billion dollars recorded a year earlier. Most of the increase funded artificial intelligence infrastructure. Such intensity of investment tests the ability of any enterprise to convert outlays into sustained profits without repeated rounds of external financing.

The public listing also drew attention from wealth managers seeking clients among former employees. One ex-engineer reported receiving handwritten solicitations and branded merchandise from multiple firms in recent months. These contacts illustrate how large equity events redistribute ownership and create new pools of investable assets across the economy.

SpaceX now ranks among the seven largest public companies by market value, trailing only Nvidia, Alphabet, Apple, Microsoft, Amazon, and Taiwan Semiconductor. Trading volume remained elevated as investors weighed the company's dual exposure to satellite communications and emerging AI applications against ongoing cash consumption. Monday's premarket movement suggests continued interest, though sustained price levels will depend on execution against the capital demands already visible in quarterly reports.