SpaceX Sets Record $75 Billion IPO, Putting Musk Closer to Trillionaire Status

SpaceX is set to begin trading today, Friday, after completing what is described as the largest initial public offering in history. On Thursday, the company sold 555.6 million shares at $135 each, raising $75 billion. The offering values SpaceX at $1.77 trillion, or about $1.8 trillion on a fully diluted basis after stock options and restricted shares.

The deal also sharply raises the profile of Elon Musk, who controls the company and is now estimated to be worth about $700 billion. The article says the IPO could make him the world’s first trillionaire. SpaceX had set a fundraising target of up to $80 billion, far above Saudi Aramco’s $25 billion target, which had ranked second, and above other major listings such as Alibaba, SoftBank, GM and Facebook, which were in the $16 billion to $25 billion range.

Nir Orgad, an overseas equities analyst in Bank Leumi’s investment division, said the deal is “a starting gun for another wave of IPOs,” and a test of investor appetite for large companies involved in AI. He said many space companies have already risen ahead of the listing, and that the success of the offering could make Musk “the first person worth a trillion dollars.” He also said retail investors may account for about 30% of the deal, far above the usual 5% to 10% in historical IPOs.

Orgad described SpaceX as a “one man show,” noting that Musk holds 85% of the Class B shares that secure his control. He said investors are effectively betting on Musk, his vision, and his relationship with President Donald Trump, especially because SpaceX holds contracts with the U.S. Defense Department and NASA. He added that the company’s capital spending has risen to about $40 billion, explaining the need for such a huge raise even though SpaceX is still loss-making.

He warned that the new IPO wave could absorb $300 billion to $400 billion from the market, with institutions likely selling semiconductor stocks to free up cash. The impact could also deepen technology’s dominance in the S&P 500, where tech already accounts for nearly 40%. If SpaceX grows quickly enough, Orgad said it could enter the Nasdaq 100 and later the S&P 500, giving holders of index funds, pension plans and provident funds indirect exposure to the company.