SpaceX on Thursday set its final IPO price at $135, the last stage in a long running process to bring Elon Musk’s space and AI conglomerate public.Subscribe to read this story ad-free Get unlimited access to ad-free articles and exclusive content.The company, which also owns the X social media network, will begin trading on Friday at a valuation of $1.77 trillion.
The IPO, which could be a referendum on Musk himself, is also going to be the latest major test of red hot demand for the artificial intelligence boom and the mechanics of the market itself.When Facebook’s massive IPO debuted on the Nasdaq exchange in 2012, technical glitches delayed its opening.
SpaceX will also trade on the Nasdaq and is set to be three times larger than the prior largest IPO on record.But the implications stretch far beyond the opening trade.For years, SpaceX was largely accessible only to venture capital firms, institutional investors, and a small group of private shareholders.Now, ordinary investors will have their first chance to buy into one of the most closely watched companies in the world.“The world will get its arms around and understand what we’ve been able to follow for a number of years now,” said Dan Hanson, senior portfolio manager at Neuberger, whose fund invested in SpaceX while it was still private.Hanson said investors should think of SpaceX not just as a rocket company, but as a combination of its launch business, Starlink satellite internet network, and artificial intelligence ambitions.
“This team is just getting started,” he said.“There’s a significant opportunity for them to create value as they execute.”Not everyone agrees.
Even before its debut, some have doubted if the offering is pushing the bounds of reality.Analysts at Morningstar wrote last week that they believe the company is “overvalued” given their financials.
SpaceX had been aiming to go public at a value of more than $2 trillion, however that has since been trimmed to ab...