SpaceX IPO Mania Enters A Higher Orbit

SpaceX’s record Wall Street launch did not run out of fuel after Friday’s debut. The space-and-satellite-internet giant said underwriters exercised their greenshoe option, lifting total IPO proceeds to $85.7 billion from the original $75 billion raised last week. Shares closed at $192.50 Monday, up about 20% on the day after jumping 19% in Friday’s Nasdaq debut, and were recently up an additional 10% in Tuesday premarket trading, pushing the company’s valuation deeper into the rarest part of the public-market stratosphere.

The greenshoe exercise showed how much demand was still chasing the deal after the largest IPO in history already rewrote the leaderboard. The option gave underwriters the ability to buy additional shares after the offering, a common tool when demand is strong and the stock trades well after pricing. In SpaceX’s case, the move turned an already giant deal into an even bigger one, giving the company more capital while giving Wall Street one more signal that appetite for the most famous private growth company on Earth has not been satisfied.

The valuation is getting far-out, but there is a real company underneath all the launch smoke. SpaceX has a dominant rocket-launch business, a huge satellite-internet network in Starlink, and a public-market pitch that stretches from reusable rockets to broadband, defense, moon missions, Mars, and artificial intelligence. That is the kind of menu investors usually need several companies to order from. The problem is that SpaceX is not trading like a normal aerospace, telecom, or technology company. It is trading like all of them at once, with the Elon Musk surcharge added to the bill.

That is where the second-stage burn gets risky. A record IPO, a full greenshoe exercise, and a soaring stock price are powerful signs of demand, but they do not make valuation gravity disappear. SpaceX still has to turn its public-market dream into public-company results, and investors now have to decide whether they are buying an operating machine or a very expensive launch poster. For now, the rocket is still airborne. Wall Street just has to remember that even SpaceX has to come back down to earnings someday.

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