The $1.77 Trillion Valuation: A New Benchmark for Tech IPOs

SpaceX, the aerospace company founded by Elon Musk, has completed the largest initial public offering in history, pricing 555.6 million shares at $135 each and achieving a market valuation of $1.77 trillion.

The debut on Nasdaq under the ticker SPCX is set to create thousands of new millionaires and position Musk as the world's first trillionaire when combined with his Tesla holdings.

Analysts highlight the company's long-term growth potential, driven by Starlink and AI ambitions, while also noting near-term volatility risks and comparisons to past tech IPOs.

A New Era of Space Exploration and AI Ambitions

SpaceX president and COO Gwynne Shotwell said her company is also a competitor in the artificial intelligence space, which accounts for a big chunk of its total addressable market.

Shotwell told CNBC that SpaceX is 'builders, we build our own launch vehicles, we build our launch sites, and we're building data centers both on the ground as well as in orbit soon.'

Many Wall Street observers have drawn comparisons between SpaceX's debut and the market launch of Facebook parent Meta Platforms, which was a flop.

The Retail Investor Enthusiasm: A Reflection of Musk's Vision

The massive market debut has drawn overwhelming enthusiasm among retail investors, and Shotwell said that focus reflects Musk's vision for the company.

'He's trying to make space open for everybody,' said Shotwell. 'He wanted this IPO, he wanted reuglar people to be able to buy the stock, and a lot of folks participated at the retail level.'

The Near-Term Challenges: A Coin Flip for the IPO's Chances

There is widespread uncertainty about how many IPO buyers simply wanted SpaceX allocations just to flip the stock for a quick proit.

Ben Narasin , founder of Tenacity Venture Capital, told CNBC that he would be a long-term holder of SpaceX stock, but he was very realistic about the near-term challenges facing the shares.

What Auditors Flagged in the May Filing: A $28.5 Trillion Total Addressable Market

SpaceX is about more than just rocket ships and satellite internet: President and COO Gwynne Shotwell said her company is also a competitor in the artificial intelligence space, which accounts for a big chunk of its total addressable market.

Auditors highlighted the company's 'total addressable market' was $28.5 trillion - that's allmost 88 percent of the total value of the entire US economy.