SpaceX shares climbed as much as 11% in premarket trading Tuesday, extending a rally that has made the rocket and satellite company one of the most closely watched stocks since its market debut last week. The stock rose 20% on Monday, its first full trading day after Friday's initial public offering, and was up 10.4% at $212.50 in recent trading, according to Reuters. That puts shares more than 57% above the $135 IPO price.
The surge values SpaceX at approximately $2.8 trillion, surpassing Amazon's $2.66 trillion market capitalization. The rally was fueled by a bold revenue forecast from CEO Elon Musk, who posted on X Sunday that SpaceX "might be able to reach approximately" $1 trillion in revenue by 2030. That target dwarfs the company's 2025 revenue of $18.7 billion, during which it posted a net loss of $4.9 billion. Losses continued into 2026, with a $4.28 billion deficit in the first quarter.
While institutional and wealthy investors have reaped gains, many retail participants received far fewer shares than they anticipated. CNBC reported Monday that the oversubscribed IPO left some smaller investors with only a sliver of their desired allocations. One investor expecting 1,000 shares received just 17; another hoping for 4,250 got only 147. The disparity highlights the challenge for individual investors seeking access to high-demand offerings.
For those with greater financial clout, shares were more accessible. Gina Rinehart, Australia's richest person, has built a stake in SpaceX worth more than $1 billion through her privately held company Hancock Prospecting, according to The Wall Street Journal. The position represents Hancock's largest investment outside of iron ore, the commodity that underpins its core mining business.
In emailed remarks to the Journal on Monday, Rinehart said the investment reflects her confidence in Musk and the case for Western economies to continue funding technology and innovation. "We see SpaceX as a rare business: led by a truly exceptional person, technically exceptional and operating in sectors that are crucial, and with long-term potential," she said.
Advisors may want to weigh the long-term prospects of SpaceX against the volatility seen in its early trading days. As noted in SpaceX's $75B IPO Sets Record, Advisors Urged to Weigh Long-Term Prospects, the company's ambitious revenue targets contrast with its current losses. Meanwhile, State Street advocates sector ETF diversification amid the single-stock frenzy sparked by the IPO.
The IPO's oversubscription and subsequent price surge have drawn attention to the challenges of allocating shares in high-demand offerings. For financial advisors, the event underscores the importance of managing client expectations around IPO access and the potential for concentration risk in single-stock positions. As the market digests SpaceX's debut, the company's valuation and Musk's forecasts will remain under scrutiny.
