Market AnalysisJun 17, 20262 Min
SpaceX eyes nearly $3 trillion market cap as shares continue to rally
Elon Musk-led space and satellite company SpaceX is leaping towards the $3-trillion market capitalization mark. The overnight gains in its shares hint at a solid opening in the third trading session after two days of rally.
SpaceX shares have surged above $220 in overnight trading, pushing its market capitalisation to nearly $2.9 trillion, according to market commentary platform The Kobeissi Letter.
The stock is just $100 billion away from surpassing Microsoft, bigger than the market capitalisation of Apple and roughly equivalent to that of Google, the platform noted in a post on social media platform X.
Further, the combined market capitalisation of both SpaceX and Tesla is now at a record $4.4 trillion, it added.
“Never in history has an IPO (initial public offering) ever come remotely close to what we are seeing right now,” the post said.
The overnight surge in the SpaceX share price on Monday marks a 63% jump from the IPO price of $135 per share.
The two-day rally has propelled the company’s market value and landed it among the six largest companies in the world.
SpaceX shares on Monday had rallied around 20% to close at $192.50 apiece on their first full day of trading. Heavy trading volume was seen in the stock, with around 244 million shares changing hands.
The stock had closed at $161 apiece in its debut trading session, jumping 19% from the offer price of $135. According to a report, more than 500 million shares of the company had traded hands that day, coming close to the entire 555.6 million shares available in the IPO. This made Musk the world’s first trillionaire.
Greenshoe option exercised
SpaceX underwriters informed the markets on Monday that they have officially exercised their greenshoe option – a provision that allows the banks running the share sale to sell extra shares when demand is strong and investors want more than planned.
In an investor relations update released on Monday, SpaceX informed that it ended up selling nearly 639 million shares, including 83.3 million sold under the greenshoe option. This lifted the total amount raised in the IPO to $85.7 billion compared with the originally planned $75 billion.
Quarterly results only on website, X
In another filing on Monday, SpaceX also said that it will release quarterly and annual financial results, besides other material news, only through its website and social media account on X.
This move marks a departure from the standard practice by companies of using wire distribution services like Business Wire or PR Newswire to reach a broad audience of investors and media outlets.
Musk’s $1 trillion revenue claim
On Sunday, Elon Musk had claimed on his social media platform X that his rocket company could generate $1 trillion in revenue by 2030. Though he removed the post later.
In a now-deleted reply to financial commentator Jon Erlichman, Musk said: “And I would be surprised if revenue is not greater than $1T in 2031.”
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