• SpaceX shares extended gains to 10% on their second day of trading, pushing the company's market valuation north of $1 trillion.
  • The strong debut underscores massive investor demand for the largest IPO in history, fueled by SpaceX's dominance in reusable rockets and Starlink.
  • Analysts expect continued volatility as the market digests the stock's rapid ascent and the company's ambitious growth targets.

Rocketing Higher

SpaceX's shares soared for a second straight day on Thursday, rising 10% in midday trading to $185. The rally adds to a blockbuster debut that saw the stock surge 15% on its first day, cementing the company's status as one of the most valuable publicly traded firms globally.

The momentum reflects an insatiable appetite for SpaceX equity among institutional and retail investors alike, who are betting on founder Elon Musk's vision of interplanetary travel and the booming Starlink satellite internet business. “The demand is unprecedented—we've seen orders from large asset managers and sovereign wealth funds that dwarf typical IPO allocations,” said a person familiar with the order book, declining to be named.

Behind the Numbers

SpaceX's IPO, which raised roughly $50 billion, is the largest on record, dwarfing previous mega-deals from Alibaba and Saudi Aramco. The company reported approximately $8 billion in profit on $15–16 billion in revenue last year, largely driven by Starlink's growing subscriber base and a steady cadence of government and commercial launches.

“SpaceX is rewriting the playbook for capital formation in deep tech,” said a portfolio manager at a top-10 asset manager. “Its vertical integration and reusability give it a cost advantage that no competitor can match.”

The surge has also lifted sentiment across the space sector, with rivals like Rocket Lab and Blue Origin seeing their shares rise in sympathy. However, some analysts caution that the valuation leaves little room for error. “At these levels, SpaceX needs to execute flawlessly on Starship and Starlink's next phases,” noted an analyst at a bulge-bracket bank. “A single launch failure or regulatory setback could trigger a sharp correction.”

Regulatory and Geopolitical Undercurrents

The IPO's scale has drawn scrutiny from regulators and national security officials, given SpaceX's critical role in U.S. defense launches and satellite communications. The Committee on Foreign Investment in the U.S. (CFIUS) is said to be monitoring foreign ownership in the stock, though no formal review has been announced.

Meanwhile, Starlink's expansion into new markets has sparked diplomatic tensions, particularly in Europe, where telecom incumbents have lobbied for tighter spectrum rules. “SpaceX is a national champion, but its global ambitions will inevitably invite pushback,” said a former State Department official familiar with space policy.

This article has been updated to reflect the share price at 1:30 p.m. ET. SpaceX did not respond to a request for comment.