Space Exploration Technologies NASDAQ:SPCX, an aerospace company focused on launch services, satellite communications, and artificial intelligence, has given back much of its early stock-market rally one month after its record-setting Nasdaq debut. SpaceX priced its June 12 initial public offering at $135 per share, raising about $75 billion in the largest IPO on record. The stock opened at $150 and later climbed to a post-IPO high of $225.64 before closing at $145.30 on July 10, leaving the shares about 35% below their peak but still above the offering price. Retail investors purchased a record $118 million of SpaceX shares on the first trading day, according to Vanda Research, while the company finished that session with a market capitalization of roughly $2.1 trillion.
Investor enthusiasm increased after CEO Elon Musk said SpaceX could generate $1 trillion in annual revenue by 2030, a target that stands well above the company's current financial profile. SpaceX reported $18.67 billion in revenue for 2025, up from $14.02 billion a year earlier, while its net loss reached $4.94 billion as spending increased on artificial intelligence initiatives and other investments. Reaching Musk's target would require annual revenue to expand by more than 50 times from its 2025 level within five years. The company added to its artificial intelligence ambitions on June 16 by announcing a $60 billion acquisition of Anysphere, the developer of the Cursor AI coding assistant, before launching an inaugural bond offering seeking at least $20 billion for AI and computing infrastructure. SpaceX also announced a multibillion-dollar agreement with Reflection AI to provide computing resources, although these developments did not stop the stock from falling more than 16% to $154.60 on June 22 as investors continued taking profits following the early rally.
Institutional interest continued to expand as FTSE Russell, an index provider, added SpaceX to its U.S. indexes during its June 26 semiannual reconstitution, while Nasdaq, the exchange operator behind the Nasdaq-100, announced on June 27 that SpaceX would join the index before the market opened on July 7 with a weighting below 1%. Roughly 200 exchange-traded funds had established positions in the shares by the end of June, suggesting that the company's index additions helped broaden institutional ownership despite the pullback. Morgan Stanley, a global financial-services firm, initiated coverage with an Overweight rating, while Goldman Sachs, another global investment bank, began coverage with a Buy rating and a $205 price target after the IPO quiet period expired on July 7. Investors may now focus more closely on whether SpaceX can deliver sustained revenue growth and meaningful progress across its aerospace and artificial intelligence businesses to support its elevated valuation.