Mother Of All IPOs To Grace The World Soon, BUT Is Elon Musk's SpaceX IPO Worth Buying?

The richest man on Earth, Elon Musk, is launching the 'Mother of All IPOs' in the world, SpaceX, which is aiming for a $75 billion public offering. The rocket maker is expected to hit a valuation of $1.77 trillion after its blockbuster IPO. His SpaceX is expected to make history by becoming one of the most sensational and largest debuts in the USA market. However, the question is whether SPACEX is worth buying.

Exchanges like Nasdaq have revised their index weightage rules, and others like RUSSELL and the S&P 500 are following suit. These rules are important and tricky, and many investors have not noticed. Hence, it begs the question, who really benefits from the SpaceX IPO?

Let's first understand the SpaceX IPO and how big it is!

SpaceX IPO: The Behemoth Incoming!

As per the US SEC filing report, SpaceX's IPO will be an eye-popping $75 billion in size. Under which, the defence and aerospace giant is selling 555.6 million shares at $135 per share.

The company is expected to debut on June 12 on the Nasdaq stock exchange.

Elon Musk To Become First Trillionaire!

SpaceX is targeting a market valuation of $1.77 trillion on debt, making it the seventh-largest company in the world. The spacecraft launcher will become bigger than Saudi Aramco and Elon Musk's electric vehicle behemoth, Tesla, as well.

If the listing goes as predicted, Elon Musk could become the first trillionaire on Earth. He currently holds about 42% stake in SpaceX. Also, despite the market debut, Musk will continue to hold 82% voting rights in SpaceX.

As of June 4, 2026, Elon Musk has a net worth of $726 billion thanks to his stakes in Tesla and SpaceX. He is already racing towards the $1 trillion mark.

SpaceX vs Tesla: Two Sons Of Elon Musk!

SpaceX IPO is already the moon child of Elon Musk, which will not just skyrocket his wealth but also outperform his other megastar, Tesla.

Tesla debuted on June 19, 2029, at a share price of $17, raising up to $226 million. Tesla was the first American carmaker to go public since 1956.

In comparison, SpaceX is entering Wall Street at 330× the amount Tesla raised and at a valuation over 1,000× Tesla's IPO market cap.

Currently, Tesla's market cap is around $1.6 trillion.

SpaceX: The Mother IPO Of All IPOs!

If completed, SpaceX's IPO isn't just the biggest ever in the USA, but would dwarf the title of biggest IPO in the world. Currently, the largest IPO globally is Saudi Aramco, which raised $25.6 billion in 2019. SpaceX's IPO is over three times that of Aramco. In the USA, the largest IPO listing title is held by China's Alibaba, which debuted in 2014 after raising $21.8 billion.

Now that we have understood how big SpaceX's IPO is, the next question that investors should ask themselves is whether it is worth adding to their portfolio.

Is SpaceX's IPO Worth Investing?

"SpaceX insiders and the wealthy investors who own shares of the company will greatly benefit from the $1.75 trillion IPO on June 12. What about the retail investors? They are left with the dregs," said Campbell Harvey, a Professor at Duke University, Partner, Research Affiliates, Advisor, Man Group.

Harvey explains that when SpaceX debuts, it instantly ranks among the eight largest stocks in the market. That forces a wave of index funds to rebalance and buy, creating real, if temporary, upward pressure on the price.

"Normally that wouldn't alarm me. But the rules have been bent in ways most investors haven't noticed," he said. One of the biggest points he shed light upon is the Nasdaq rule changes.

He said, "Nasdaq fast-tracked SpaceX into the Nasdaq 100, cutting the usual 3-to-12-month trading requirement to just 15 days." It also waived its 10% minimum float rule to admit a stock with only 4% of shares trading."

So let's understand this in simple words!

What Is Float First?

Generally, float means the portion of a company's shares that is actually available for buying and selling on exchanges for retail investors. SpaceX will offload 555.6 million shares in the IPO, but Musk still owns 42% of the total company, and that chunk is not accessible. So, the floating shares available to trade are a small size for retail investors.

Nasdaq's Rule!

When a company joins the Nasdaq 100 index, its weightage is calculated taking into consideration the full market cap multiplied by its float percentage.

For example, If SpaceX is estimated at a market valuation of $1.7 trillion, and only 20% of the shares are floating, then the weightage of the company on the Nasdaq 100 would be relatively lower.

However, under the Nasdaq provisions, if a company's floating shares is below 33%, Nasdaq multiplies that float by 3 when calculating index weight.

Example: Imagine SpaceX's float is 20%.

- Normal calculation: weight based on 20% of $1.75 Trillion = roughly $350B worth of influence

- With the 3× multiplier: Nasdaq treats it as 60% float = roughly $1.05 Trillion worth of influence.

Thereby, SpaceX's weight on the index rises to 12% from 4%, which is three times higher than the actual float.

Why Does This Index Weightage & Actual Float Matter?

Hundreds and thousands of index funds and ETFs track the Nasdaq 100 index, and they are required to hold stocks in a certain proportion. So if SpaceX is suddenly weighted at 12% instead of 4%, these funding houses or ETFs will be pushed to buy a massive chunk of SpaceX shares to adjust to the proportion. This is called forced buying and stirs a sudden unnatural surge in stocks.

That said, Harvey added, "The pattern that follows is painfully predictable: the price climbs, retail investors pile in, and then the correction arrives. The institutions understood the setup. Many who bought the hype will not." Accordingly, he suggests a wait-and-watch approach!

There Is None Like SpaceX?

On the other hand, Arun Aggarwal, Founder of AlfaStox Securities & AlgoBot TechFinEdu, believes SpaceX is attractive. He said, "Valuation is easy when you can compare a company with its peers. But who is SpaceX's peer? There isn't one."

According to Aggarwal, history shows that investors often misprice companies that create new markets. Traditional models work well in stable regimes, but they can fail when the game itself changes.

Lastly, he added, "SpaceX may redefine what "expensive" means. Sometimes the greatest risk is not buying an overvalued asset—it is missing a once-in-a-generation transformation."