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The stock was trading around $220 in morning trade, extending gains from its blockbuster market debut last week. At current levels, SpaceX has risen more than 62% from its IPO price of $135 per share and carries a market capitalization of about $2.85 trillion.
The rally made SpaceX the largest contributor to gains in the Nasdaq Composite. The company's valuation moved past Amazon's $2.64 trillion and briefly exceeded Microsoft's $2.92 trillion before paring some gains. The world's three most valuable companies continue to command market values above $4 trillion.
Investor interest received another boost as options on SpaceX shares began trading on Tuesday, giving investors additional ways to bet on the stock's future direction.
"Today, SPCX options launch, offering standard monthly expirations and strikes ranging from $25 to $380. If call demand is heavy, dealers might be forced to buy SPCX into this low-liquidity situation," said Brent Kochuba, founder of options analytics platform SpotGamma.
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He added that demand from index funds could emerge as early as next week, with a larger pool of shares not expected to become available for another one to two months.
Market participants cautioned that the stock could remain highly volatile in the near term given its relatively limited free float and lofty valuation.
"We can say with certainty that this valuation makes absolutely no sense today. People are buying SpaceX in the expectation that others will buy too and push the price higher — that's speculation," said Ipek Ozkardeskaya, senior market analyst at Swissquote Bank.
The sharp rise comes despite the company remaining loss-making. SpaceX reported revenue of $18.67 billion in 2025, up from $14.02 billion a year earlier, but posted a net loss of $4.94 billion following its merger with artificial intelligence startup xAI.
Investors, however, continue to focus on the company's dominant position in commercial space launches, its Starlink satellite internet business and growing exposure to artificial intelligence through xAI.
The stock could receive additional support from upcoming index additions. SpaceX is expected to gain fast-track entry into the Nasdaq-100, making it a major holding for index-tracking funds. FTSE Russell and MSCI are also scheduled to add the stock to their indices on June 26 and June 29, respectively.
"While index inclusion alone is typically insufficient to drive sustained repricing, we see the combination of passive flows, momentum and limited float driving upside beyond historical index-addition moves," brokerage Zephirin Group said while initiating coverage with a "buy" rating.
The company also disclosed that underwriters had exercised the greenshoe option attached to its IPO, increasing total proceeds from the offering to $85.7 billion from the original $75 billion raised last week.
Trading activity remained exceptionally strong. More than $23 billion worth of SpaceX shares changed hands by mid-morning, exceeding the combined trading volumes of Nvidia, Microsoft, Tesla and Apple.
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Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today.
Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price
Facts Only
SpaceX stock traded around $220 in morning trade, up 62% from its IPO price of $135 per share.
The company's market capitalization reached approximately $2.85 trillion.
SpaceX briefly surpassed Microsoft's $2.92 trillion valuation.
Options trading for SpaceX shares began on Tuesday, with strikes ranging from $25 to $380.
SpaceX reported revenue of $18.67 billion in 2025, up from $14.02 billion the previous year.
The company posted a net loss of $4.94 billion following its merger with xAI.
SpaceX is expected to join the Nasdaq-100 and other indices, including FTSE Russell and MSCI, in late June.
Underwriters exercised the greenshoe option, increasing IPO proceeds to $85.7 billion from $75 billion.
Trading volume for SpaceX shares exceeded $23 billion by mid-morning.
Analysts caution that the stock may remain volatile due to limited free float and high valuation.
Executive Summary
Full Take
The narrative surrounding SpaceX's meteoric stock rise is a classic example of speculative fervor driven by market momentum rather than fundamental valuation. While the company's dominance in commercial space launches and its Starlink business are undeniably impressive, the $2.85 trillion valuation—despite ongoing losses—raises questions about the sustainability of such growth. The launch of options trading and impending index inclusions are likely to amplify volatility, as passive flows and momentum trading take precedence over traditional metrics. This pattern echoes historical market bubbles where investor psychology, rather than earnings or cash flow, dictates price movements.
The article subtly frames SpaceX's rise as a triumph of innovation, but the underlying driver appears to be a self-reinforcing cycle of speculation. The mention of "low-liquidity situations" and "heavy call demand" hints at potential market manipulation risks, where limited share availability could exacerbate price swings. Moreover, the focus on index inclusions as a catalyst for further gains suggests a feedback loop where institutional buying, rather than business performance, propels the stock higher.
Root cause: This narrative thrives on the modern financial paradigm where growth stocks are valued on future potential rather than present profitability. The unstated assumption is that SpaceX's technological edge and market position will eventually translate into outsized earnings, justifying today's lofty valuation. However, this ignores the inherent risks of unproven business models (e.g., Starlink's long-term viability) and the competitive pressures in both space and AI sectors.
Implications: If this trend continues, it could further decouple stock prices from fundamentals, rewarding short-term traders while increasing systemic risk. The beneficiaries are early investors and speculative traders, while latecomers may face significant downside if momentum reverses. The broader consequence is a market environment where innovation is conflated with valuation, potentially distorting capital allocation.
Bridge questions: What would it take for SpaceX to justify its valuation through actual earnings? How might regulatory or competitive pressures disrupt this narrative? What historical precedents should investors consider when evaluating high-growth, loss-making companies?
Counterstrike scan: If this were part of a coordinated influence campaign, the playbook would involve amplifying FOMO (fear of missing out) through selective emphasis on index inclusions and options trading, while downplaying financial losses. The actual content aligns with this pattern but does not appear overtly manipulative—it reflects genuine market dynamics, albeit with speculative excesses.
Patterns detected: ARC-0024 Ambiguity (implied future potential without concrete timelines), ARC-0043 Motte-and-Bailey (justifying valuation with innovation while ignoring losses).
Sentinel — Human
The text exhibits strong characteristics of human-written financial journalism, employing nuanced balance and specific expert commentary on market dynamics.