SpaceX goes public, valuation driven by AI potential
SpaceX became a publicly traded company on Friday, valued at nearly $1.8 trillion, with the majority of its value attributed to AI services from space, according to its S-1 filing.
Space Exploration Technologies, commonly known as SpaceX, started trading on the Nasdaq exchange in New York City on Friday, nearly 24 years after its founding. The initial share price was $135, closing the day at $160.95, a rise of over 19%. The company's valuation reached nearly $1.8 trillion.
SpaceX founder Elon Musk became the world's first trillionaire on paper, with his personal stake worth more than $700 billion. Thousands of current and former employees became millionaires overnight thanks to the company's stock options plan.
SpaceX is now one of the most valuable companies globally, but opinions differ on whether the valuation is justified. Some see it as overhyped, while others view it as a rare chance to invest in a dominant space firm that could one day operate orbital data centers.
The company's S-1 filing made clear that its value does not come primarily from space-enabled solutions or the Starlink constellation. These account for less than 7% of the total addressable market. Instead, SpaceX sees the majority of its value in providing AI services from space, mainly for enterprise applications.
With public trading, SpaceX is now subject to greater disclosure and scrutiny. Although Musk retains full control through ownership and voting rights, the stock price will be a key factor influencing his decisions. Investors who believe in the AI potential will likely push the company to focus resources on that area.
