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

SpaceX shares climbed about 6 percent in premarket trading Monday, extending gains from the largest initial public offering in history. The stock traded near 170 dollars after closing at 161 dollars on Friday, a 19 percent jump from the 135 dollar IPO price that valued the company above 2 trillion dollars.

The debut surpassed previous records and pushed SpaceX ahead of Tesla in market capitalization. Elon Musk now oversees the world's most valuable public company by some measures, with SpaceX operating Starlink satellite internet and reusable rockets alongside its February merger with the artificial intelligence firm xAI. The combined entity reported nearly 5 billion dollars in losses for 2025 and spent 10.1 billion dollars on capital expenditures in the first quarter, more than double the prior year's outlay, with most funds directed toward AI infrastructure.

Analysts offered sharply different assessments of whether the valuation can hold. CFRA initiated coverage with a sell rating and a 12-month price target of 115 dollars, citing an aggressive growth plan, high capital demands, and elevated expectations. Morningstar placed fair value at 63 dollars and labeled the shares overvalued. NewStreet Research took a more positive stance, setting a target of 165 dollars. These splits reflect broader uncertainty about how quickly SpaceX can translate its satellite and launch operations into sustained profits.

The IPO has also drawn attention to secondary effects on former employees. Scott Morton, who worked at the company and now runs a software firm, described receiving handwritten letters and promotional items from wealth managers seeking to manage his newfound equity. Such outreach illustrates how concentrated wealth from a single public listing can ripple through personal finance networks, even for those no longer at the firm.

Markets overall rose on news of a U.S.-Iran ceasefire, providing a favorable backdrop for the SpaceX shares. Still, the company's path forward hinges on execution across capital-intensive projects at a time when investors are reassessing the durability of high-growth technology valuations. Two rival AI companies, OpenAI and Anthropic, have filed confidential paperwork for potential listings later this year, setting up further tests of appetite for large, unprofitable growth stories.

SpaceX's trajectory will likely influence how markets price similar enterprises that blend government contracts, consumer services, and speculative technology bets. The early trading gains show continued enthusiasm, yet the divergence among research firms underscores the narrow margin between optimism about future scale and caution over current cash burn.