SpaceX began trading on the New York Stock Exchange at $135 per share in the largest initial public offering in history, valuing the company at $2.4 trillion. The offering was heavily oversubscribed, with retail investors receiving an unusually large allocation of up to 30% of the shares, according to Bloomberg. Elon Musk, SpaceX's founder and CEO, becomes the world's first trillionaire, but the company remains unprofitable and burning cash as it invests in AI infrastructure and orbital data centers.

$135 a share, 100 times sales: The valuation that dwarfs even Facebook's 2012 debut

SpaceX's IPO price values the company at nearly 100 times its current sales, a multiple that surpasses even Facebook's 100-times-earnings valuation at its 2012 IPO, the source reports. That comparison is instructive: Meta's shares initially halved amid skepticism before ultimately soaring, turning a £1,000 investment into nearly £15,000 today. Whether SpaceX can replicate that trajectory or suffer a dot-com-style bust is the central debate among analysts. Early trading suggests the stock could rise by up to 35% on debut, but the underlying valuation leaves little room for error.

Why one in five British stockpickers is betting on Musk's vision

According to a survey by Opinium cited in the source, one in five British stockpickers plans to invest early, reflecting strong retail interest. Despite the company's lack of profitability,individual investors are drawn to Musk's narrative of a multi-decade space and AI revolution. Bulls like Pierre Ferragu of New Street Research forecast a 12-month target price of $165, with a potential fair value of $330 if SpaceX captures a larger share of an expanding market. The retail enthusiasm contrasts sharply with institutional caution about the frothy valuation.

The $75 billion offering and the retail investor's thin slice

Although retail investors were allocated up to 30% of the $75 billion offering, orders exceeded $100 billion, meaning many individual investors will receive only a fraction of the shares they requested, the source notes. The bulk of the shares is reserved for institutional investors such as investment banks, wealth managers, and pension funds. This structure leaves retail participants with a small allocation in a stock that is already priced for perfection, raising questions about who truly benefits from the IPO's democratization rhetoric.

A cash-burning bet on orbital data centers and AI infrastructure

SpaceX is burning cash as it invests heavily in building massive data centers — both on Earth and potentially in orbit — to support AI infrastructure, an effort that will keep the company in the red for the foreseeable future, according to the report. The bears argue that the valuation is the frothy peak of an AI frenzy, drawing parallels to the dot-com bubble. The stock's fate will hinge on Musk's ability to execute on ambitious plans — including Starship launches, Starlink expansion, and AI integration — while navigating regulatory and technical risks. For retail investors, the decision is stark: buy and hold through volatility, 'stag' for a quick pop, or watch from the sidelines and hope for a cheaper entry later.

The bear case: 'Frothy peak of an AI frenzy' versus the bull's $330 target

Experts are deeply divided. Bears warn of a severe correction, comparing SpaceX's valuation to the dot-com bubble, while bulls see a multi-decade growth story in space and AI infrastructure, the source reports. One key open question is whether Musk can monetize his vision before cash burn forces a dilutive secondary offering. Another is how regulators will treat orbital data centers and Starlink's expansion.. The asymmetry of information between retail and institutional investors — with insiders knowing the true pace of Starship development — adds another layer of risk. With a $2.4 trillion market cap at debut, SpaceX is already towering over giants like Tesla and Meta, but staying there will be an epic tug-of-war between optimism and gravity.