- The shares of SpaceX were hovering close to the $170 mark at 8:27 am ET.
- SpaceX closed at $160.95 on Friday, over 19% higher than its IPO price.
- The rocket maker lost almost $5 billion last year, making some analysts worried over its valuation.
After a stellar initial public offering (IPO), the shares of Elon Musk's SpaceX jumped over 6% in premarket trading on Monday. The shares of the rocket maker were hovering close to the $170 mark at 8:27 am ET. SpaceX closed at $160.95 on Friday, up by over 19% from its IPO price.
This puts the company's market capitalisation above $2 trillion, making it the largest IPO in history.
However, concerns over its valuation still remain, as per CNBC. The company's capital expenditures in the three months ending March rose to $10.1 billion compared to $4.1 billion in the same period the previous year. The majority of the money went toward artificial intelligence.
SpaceX's merger with Musk's AI startup xAI also took place in February.
The rocket maker lost almost $5 billion last year. This has made some analysts worried over its valuation.
Paulina Roszkowska, lecturer in finance at Bayes Business School, explained to CNBC that SpaceX has put forward “a lot of promises,” but it will need to transform those into cash flow at some point.
She added that the company's IPO prospectus lacks details on governance or execution risks. “So I am wondering what these promises are based on,” Roszkowska said.
Before its IPO, Morningstar analyst Nicolas Owens had described the SpaceX stock as “overvalued.”
More than 4,400 current and former SpaceX employees are likely to become millionaires after the public issue, as per the NY Times. Almost 400 employees could hold stock over $100 million.
SpaceX had a remarkably small "free float", with only about 4.3% of SpaceX shares on offer for trading. The rest lies with early investors, founders and employees.
SpaceX To Reach $1 Trillion In Revenue By 2030?
Musk said that the rocket maker could reach $1 trillion in revenue by 2030.
"And I would be surprised if revenue is not greater than $1T in 2031," Musk wrote on X, replying to journalist and financial commentator Jon Erlichman.
And I would be surprised if revenue is not greater than $1T in 2031
— Elon Musk (@elonmusk) June 14, 2026
Goldman Sachs had predicted that the rocket maker's revenue would go beyond $470 billion in 2030, while JP Morgan reported it would reach almost $330 billion, Reuters reported.
SpaceX became the sixth-largest US firm on Friday.
