How Can Ordinary People Invest In SpaceX IPO, And Why It’s Risky
Synopsis
SpaceX is preparing for a record-breaking IPO that could give ordinary investors rare access to shares alongside major institutions. The company plans to raise $75 billion at a valuation of about $1.77 trillion, with trading expected to begin on June 12. Retail investors can apply for shares through platforms including Fidelity, Robinhood, SoFi, Charles Schwab and E*Trade. However, analysts have warned that the stock may be overvalued and could experience significant volatility after listing. Here’s how retail investors can participate and the risks they should consider before investing.
SpaceX is gearing up for what could become the biggest IPO of all time and, in a departure from most major listings, retail investors will receive large allocations of shares. The company is offering 555.6 million shares, priced at $135, the largest IPO to date, raising $75 billion, and taking the valuation of the company up to around $1.77 trillion.
If the IPO goes ahead, SpaceX would be on course for the biggest-ever public market debut by valuation since Saudi Aramco's 2019 listing. The final IPO price, which may still change against changes in investor demand and market conditions, will be determined on June 11 at the latest with trading to commence by June 12.
How Would Retail Investors Be Able To Purchase SpaceX Stock?
SpaceX provides access for retail investors to IPO shares via Charles Schwab, Fidelity, Robinhood, SoFi Technologies and Morgan Stanley's E*Trade. The firm is said to be looking at making as much as 30% of the offering available to individual investors, which would give retail buyers vastly greater access than is normally possible on large IPOs.
Fidelity cut its minimum requirement from the previous $100,000 down to a mere $2,000 and said customers can signal interest in buying just a single share. Schwab still has a minimum brokerage account balance of $100,000, while Robinhood, SoFi and E*Trade do not publicly disclose any minimum investment requirements.
Some restrictions may apply. Under the rules, Robinhood and SoFi said customers who assumed a short position on shares in previous IPOs and sold within 30 days may receive limited or no allocation in future opportunities.
Why Are Analysts Warning Investors?
SpaceX may be priced too high according to some analysts. Morningstar analysts called the stock "substantially overpriced" and suggested investors could find better entry points after the IPO. They pointed out much of the value of the company rests on technologies that they see as experimental and unproven.
Other analysts have cautioned that the stock might be extremely volatile following its market debut. Truist analysts cited potential major volatility in its share price, and investor Michael Burry said there was "nothing" in the IPO filing to merit a valuation above $1 trillion, let alone almost $2 trillion.
Finance professor, Jay Ritter said the "Elon Musk effect" will probably raise demand for that IPO in the long run and also create volatility. He also said that Musk will retain significantly greater voting power than other shareholders.
SpaceX's Heavy Reliance on Starlink
SpaceX is still a money-losing company. In 2025, the company lost $4.94 billion and it also reported a loss of another $4.28 billion over its last quarter
Starlink, SpaceX's satellite internet business, generates the largest chunk of its revenue. The only profitable unit in the third quarter, Starlink continued external software use, Similar to last quarter being 69% of first-quarter revenue.
It had $619 million in losses from its space operations and a further $2.5 billion downside from the adjacent AI division. This caused some analysts to wonder whether the current valuation of the company reflected its actual business performance.
IPO comparison
The $1.77 trillion valuation that has been proposed became one of the biggest controversies surrounding the IPO. Based on numbers shared by the firm, it would make the valuation roughly 9,365% higher than SpaceX's projected revenues in 2025.
In comparison, Lineage, the largest IPO in terms of valuation through 2024, listed with a valuation approximately 240% over revenue. Medline, the biggest IPO of 2025, had a listing valuation about 116% above revenue.
Supporters contend SpaceX merits a premium due in part to its clear leadership in developing space technology, satellite internet upstart Starlink and future growth prospects. But critics argue that investors are being forced to pay for grand plans instead of hard evidence of how much more income they might generate.
Could SpaceX and Tesla Merge?
Elon Musk has talked about combining SpaceX with Tesla. The idea is increasingly garnering the attention of analysts, who have drawn potential connections between Musk's houses of business.
Dan Ives, an analyst for Wedbush, told Barron's that his firm thinks the likelihood of a merger happening in 2027 is at least 80%. He thinks uniting the companies could bolster Musk's plans for artificial intelligence and technology infrastructure.
Still others think SpaceX could eventually swallow Tesla, rather than the two merging at parity. Meaningful odds have also been assigned to a future tie-up - via prediction markets - between the two companies.
What Would the IPO Mean for Elon Musk?
This IPO could add a lot to Elon Musk's net worth. Initially, Forbes estimated that at $135 per share, he would become the world's first trillionaire.
Musk owns about 4.8 billion SpaceX shares (around 42% of the company) plus 350 million stock options with an exercise price of $8.39 per share. If SpaceX starts trading around its expected valuation, those holdings would be worth billions more.
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At Inspirepreneurs Magazine, covering entrepreneurship, business failures, and the human stories behind the world's most ambitious founders. She writes at the intersection of strategy and storytelling.
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