Elon Musk’s aerospace company, SpaceX, officially went public two weeks ago, achieving a record-breaking $2 trillion valuation, the largest IPO in history. The stock opened above $160 and surged to over $225, a 67% increase from its IPO price. Notably, 61% of SpaceX’s revenue in 2025 came from its Starlink division, which is currently the only profitable segment, while other divisions, including AI, experienced significant losses totaling $6.4 billion.
Despite the impressive valuation, only 639 million of the over 13 billion outstanding shares are tradable, primarily held by long-term investors and insiders. The initial trading dynamics disadvantage retail investors who may end up buying shares at inflated prices after significant insider-held shares are sold post-lockup expiration, which typically lasts around 180 days.
In light of these market conditions, investors are advised to approach new IPOs cautiously, focusing on the underlying market mechanics and potential supply chain opportunities rather than getting caught up in the initial hype surrounding companies like SpaceX.
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