SpaceX’s Groundbreaking IPO
On June 12, 2026, Elon Musk’s Space Exploration Technologies (SpaceX) launched its initial public offering (IPO), raising an unprecedented $85.7 billion, dramatically surpassing Saudi Aramco’s previous record of $29.4 billion. Following the IPO, SpaceX briefly reached a market valuation of nearly $3 trillion but closed at $2.13 trillion on July 2, with shares trading at $162, up 20% from the IPO price of $135.
Despite the initial success, historical performance patterns raise concerns, as many large-scale IPOs see significant declines in their first year. Analysis from Truist Financial highlights that 55% of tech-focused IPOs experience an average drawdown, suggesting SpaceX’s shares could plunge to around $101.50 within a year. Additionally, with only about 5% of outstanding shares sold during its IPO, a substantial float release is expected in the coming months, which could further impact the stock price.
As of July 2, SpaceX’s price-to-sales (P/S) ratio stood at 114, well above the sustainable limits for innovative companies, raising further skepticism about the ability to maintain momentum in the stock market.
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