SpaceX IPO: multi-bagger or rat poison?

On 12 June 2026, SpaceX made history as it executed the largest IPO in stock market history, raising a total of US$85.7 billion. The blockbuster listing shattered the previous record held by Saudi Aramco’s US$29.4 billion IPO in 2019. Following its debut, SpaceX is worth a staggering US$2.1 trillion at the point of writing, instantly cementing it as one of the most valuable mega-caps in the world.

Recently, a member of SG Wealth Builder wrote in to share his fascination—and understandable skepticism—over how a company that registered an overall operating loss of US$2.6 billion in 2025 could suddenly be commanded at a multi-trillion-dollar valuation. In this article, I will share my thoughts on SpaceX’s phenomenon and whether I would put my money in this stock.

In my opinion, the SpaceX IPO journey draws a distinct parallel to Tesla’s initial public offering back in 2010. Both are companies driven by Elon Musk’s philosophy: asking the public markets to fund an aggressive, capital-intensive, forward-looking vision while burning massive amounts of cash. When Tesla went public in 2010, the concept of a viable, mass-produced electric car was viewed by Wall Street as pure science fiction. At its IPO, that vision was merely a promise on paper; Tesla had only delivered about 1,500 units of its low-volume, boutique Roadster. Investors back then were buying into the dream of a future global energy transition, not a proven, cash-generating business.

Similarly, SpaceX is selling a vision—albeit an exponentially grander one. The prospectus stated the company’s mission is to “understand the true nature of the universe, and to extend the light of consciousness to the stars.”

But unlike Tesla in 2010, this is no longer just airy-fairy talk. SpaceX has backed up its grand philosophy with unmatched industrial execution. The company currently launches an astonishing 80% of all global payload mass into orbit, anchored by its reusable Falcon 9 fleet and an active constellation of over 6,000 Starlink satellites. Effectively, SpaceX has established a commercial monopoly in orbit, completely debunking the traditional notion that space transit is solely the luxury of sovereign governments.

To support its space exploratory mission, SpaceX is betting big on AI. However, the company is of the view that current electricity generation on Earth is ultimately unable to meet the compounding demands of next-generation AI infrastructure. Thus, SpaceX’s prospectus introduces a wild but fascinating thesis: because the Sun contains approximately 99.8% of the solar system’s total energy, the key to achieving its long-term computing mission is to move power-intensive AI workloads into orbit. By leveraging near-constant, uninterrupted solar energy arrays in space, SpaceX aims to bypass terrestrial energy constraints entirely.

For wealth builders, this means buying into SpaceX today isn’t just about rockets or satellite internet; it is a direct investment in a radical new paradigm of orbital AI data centers.

For perspective, SpaceX operates through three distinct business reporting segments: Space (encompassing Falcon, Dragon, and the next-generation Starship development), Connectivity (the high-margin Starlink satellite broadband fleet), and Artificial Intelligence (driven by the newly integrated xAI and Grok ecosystems). The collective Total Addressable Market (TAM) across these three frontiers is estimated to be a breathtaking US$28.5 trillion. To put the icing on the cake. each of these dominant segments could be spun off and listed on the Nasdaq down the road, presenting an incredibly enticing upside.

Given SpaceX’s absolute monopoly on orbital mass delivery, its unassailable first-mover advantage, and that multi-trillion-dollar TAM, it is easy to see why eager market participants are treating this IPO as a “sure-win” bet.

However, let’s not forget that success is never guaranteed. In reality, SpaceX is not a flawless investment and investors should be made aware of the massive operational tightrope the company is currently walking.

Note that this is an opinion article and not meant to be a financial advice. Please do your due diligence or engage financial advisors before investing in the stock market. Furthermore, I am not vested and have never invested in SpaceX share before. Whether SpaceX share price will surge or collapse has no impact on me. Thus, this article is not meant to induce readers to make any form of investment decisions.

The red flags of SpaceX

The first big red flag is that SpaceX is [This is a premium article. The rest of the content is blocked and can be accessible by SG Wealth Builder Members only. To read the full content, please sign up as member.]

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