SpaceX sets IPO price at $135 amid $100 billion of retail orders
SpaceX announced a $135 per-share price for its initial public offering, with retail investors submitting orders exceeding $100 billion, prompting scrutiny from regulators and analysts.
SpaceX confirmed on Thursday that its initial public offering will be priced at $135 per share, and retail investors have placed orders totaling more than $100 billion, a level of demand that could set a new record for a debut listing. The company said the final price could still adjust based on market conditions and investor interest.
Retail allocations will be made available through several brokerage platforms, including Charles Schwab, Fidelity, Robinhood, SoFi and Morgan Stanley’s E*Trade. Fidelity lowered its minimum account balance for IPO access to $2,000, while Schwab requires a $100,000 balance. The other brokers have not disclosed specific minimums.
Analysts have expressed concerns about the valuation. Morningstar projected a share price of about $63, roughly half of the set price, citing a gap between projected revenues from Starlink and the company’s disclosed earnings. Investor Michael Burry noted that the filing did not contain evidence to support a trillion-dollar valuation. Finance professor Jay Ritter said the offering is likely to be influenced by the “Elon Musk effect,” which could increase short-term demand but also lead to volatility.
SpaceX reported a net loss of $4.28 billion for the latest quarter, with Starlink contributing $4.69 billion in revenue and remaining the only profitable segment. Capital expenditures rose to $10.1 billion, driven largely by AI investments.
Elon Musk, who holds about 42 % of SpaceX, could see his stake valued at roughly $688 billion if the shares trade at the set price, potentially making him a trillionaire. Other insiders, including President Gwynne Shotwell and CFO Bret Johnson, stand to see significant increases in the value of their holdings.
Senator Elizabeth Warren has called for a thorough SEC review, citing concerns about valuation disclosures, governance structure, and the impact on index-fund investors who may be compelled to hold the stock.
"The massive size of the SpaceX IPO alone, under normal circumstances, would justify careful SEC review and attention to investor needs," Warren wrote in a letter to the regulator.
The company is expected to begin trading on Friday.
