Lead

SpaceX, the aerospace company founded by Elon Musk, has begun trading on the Nasdaq exchange after the largest initial public offering in history, making Musk the world's first trillionaire. The blockbuster IPO raised over $75 billion, with the company's valuation surpassing $2 trillion on its first day of trading, placing it among the top US companies by market value.

The debut on Friday was the culmination of weeks of investor frenzy over the rocket company, which has expanded into satellite operations and artificial intelligence, having folded in Musk's AI company xAI, which includes the social media platform X. "SpaceX wants to be able to take you to the moon, take you to Mars, and ultimately beyond," Musk said at a launch event in Starbase, Texas, surrounded by staff. "I'm confident at this point that with the incredible team that we have here at SpaceX, we will do that for you."

Coverage comparison

The IPO was reported across multiple outlets, with initial coverage focusing on the scale of the offering and Musk's new status. ABC Australia highlighted the share price jump of 11% on the first day of trading, while Al Jazeera and France 24 noted the company's valuation of over $2 trillion and the plans to take humanity to Mars. The Hindu emphasized the IPO's raising of over $75 billion and the company's expansion into satellite and AI.

Al Jazeera also reported on protests outside the Nasdaq exchange over concerns that Grok, an AI model from xAI, could create non-consensual deepfake images. The protests took place on the day of the IPO, according to the reports.

Jerusalem Post coverage included a more analytical angle, reporting that SpaceX's IPO was oversubscribed four times, according to Reuters. The same outlet also reported on Musk's prediction that SpaceX would bring in $1 trillion in revenue by 2030, a claim that analysts greeted with skepticism.

Key Claims

  • IPO raises over $75 billion: Multiple outlets reported that SpaceX's IPO raised more than $75 billion, easily outranking the previous record-holder, Saudi Aramco's $29.4 billion debut in 2019. Options for nearly 83 million additional shares could push the total above $86 billion.
  • Musk becomes world's first trillionaire: The IPO pushed Musk's net worth to over $1 trillion, with multiple outlets reporting this milestone. The company's valuation exceeded $2 trillion on its first day, placing it among the most valuable US firms.
  • Share price performance: On the first day of trading, shares jumped 11% to $150, according to ABC Australia and The Hindu. However, one Al Jazeera report described a different scenario: shares dipped below the debut price of $150 in early trading, wiping out $600 billion in market value amid a tech sell-off, before recovering 2.4%. That report also noted a 16% slump on Monday that erased $400 billion in value, with shares still 10% above the $135 IPO price. A separate Al Jazeera report said the shares closed at $160 on Monday.
  • Revenue projections: Jerusalem Post reported that Musk predicted on X that SpaceX could bring in $1 trillion in revenue by 2030, saying he would be surprised if revenue is not greater than $1 trillion in 2031. The report noted analysts' skepticism, citing Goldman's estimate of $470 billion in revenue by 2030 and Morgan Stanley's projection of nearly $330 billion. It also noted that in 2025, SpaceX's revenue was $18.67 billion, with a net loss of $4.94 billion.
  • Plans for Mars: Both ABC Australia and The Hindu reported Musk's ambition to establish a self-sustaining city on Mars with at least one million inhabitants, as well as plans to put data centres in space.
  • Analysts' reactions: On the day of the IPO, Morningstar Equity Market Strategist Lochlan Halloway told ABC Australia, "Some shareholders will see value in it, some won't. But I think we have to recognise here that the key point is a lot has to go right for this company, price where it is, to make sense as an investment." The IPO was oversubscribed four times, according to a Reuters report cited by Al Jazeera.

Perspectives

Wall Street analysts: Several analysts expressed caution about SpaceX's valuation and growth prospects. Michael Monaghan, partner portfolio manager at FounderETFs, told Al Jazeera that after a sharp sell-off and bounce, "it's usually a setup for it to move higher," adding, "I think we go higher from here." Morningstar's Lochlan Halloway was more cautious, noting that much must go right for the company to justify its price.

Elon Musk: The SpaceX CEO framed the IPO as the beginning of a new growth phase, telling ABC Australia, "We are embarking on a new growth phase, and we need capital for that." He also expressed confidence in the company's ability to take people to the Moon, Mars, and beyond.

Investor sentiment: Sarin Sio of financial company Dovetail, who attended the Nasdaq headquarters, told The Hindu that Musk "sets very futuristic goals that no one else is doing, and I think that has got a lot of people excited." This contrasted with the skepticism of some analysts.