Retail Traders Submit Over $100 Billion in Orders for SpaceX IPO
Retail investors have placed more than $100 billion in orders for SpaceX shares ahead of the company's anticipated debut, while analysts question the valuation and regulatory scrutiny is urged.
Retail investors have filed orders exceeding $100 billion for SpaceX shares, Bloomberg reported, potentially setting a new record for demand in an initial public offering. The company plans to set a final IPO price on Thursday, with the debut expected on Friday.
Shares for individual investors will be allocated through Charles Schwab, Fidelity, Robinhood, SoFi and ETrade. Fidelity lowered its minimum account requirement for IPO access to $2,000, while Schwab requires a $100,000 balance. Robinhood, SoFi and ETrade have not specified a minimum.
Analysts have expressed concerns about the proposed valuation. Morningstar projected a share price of $63, about half of SpaceX’s target, citing a gap between projected revenue from its Starlink business and realistic estimates. Investor Michael Burry said the filing did not justify a valuation of $1 trillion or more. University of Florida finance professor Jay Ritter noted that the "Elon Musk effect" could drive short-term price momentum and later volatility.
SpaceX disclosed a net loss of $4.28 billion for the latest quarter, with Starlink accounting for 69% of revenue and remaining profitable. The space and AI divisions reported losses of $619 million and $2.5 billion respectively, while capital expenditures rose to $10.1 billion, driven largely by AI spending.
Elon Musk holds about 42% of SpaceX and could become a trillionaire if shares trade at the projected $135 price, according to Forbes estimates. Other executives and major shareholders stand to see significant increases in their holdings depending on the final pricing.
"The massive size of the SpaceX IPO alone, under normal circumstances, would justify careful SEC review and attention to investor needs," wrote Senator Elizabeth Warren in a letter urging the regulator to examine index-fund exposure, disclosure gaps and arbitration provisions.
Regulatory scrutiny is expected as lawmakers and market analysts call for greater transparency on valuation methods and governance structures before the offering proceeds.
