SpaceX launched its initial public offering (IPO) on the Nasdaq in New York City on June 12, 2026, marking the largest IPO on record and opening with a market capitalization above $2 trillion, making it the sixth most-valuable U.S. company, ahead of Tesla [1][2]. The IPO was priced at $135 per share, a level described as a 'sweet-spot' for retail traders, with expectations that SpaceX options, set to begin trading on Tuesday, will see astronomic demand [1]. Elon Musk, who holds over 80% voting power at SpaceX, officially became the world's first trillionaire due to his stakes in SpaceX and Tesla [2].
The IPO triggered a sharp sell-off in SpaceX 'proxy stocks,' which had seen booming options volumes ahead of the listing. EchoStar, which owns an estimated 3% of SpaceX stock, dropped 14%, AST Spacemobile fell nearly 13%, and Virgin Galactic Holdings reversed Thursday's gains with a 34% loss [1]. Despite these declines, options traders remained bullish, with calls outnumbering puts in all three names, particularly AST, which traded more than 250,000 contracts for over $60 million in premium [1]. ETFs targeting the space sector, such as Procure Space ETF (UFO) and Defiance Drone and Modern Warfare ETF (JEDI), have also benefited, with UFO up 38% and JEDI up 33% in 2026 [1].
Gwynne Shotwell, SpaceX's COO, did not dismiss the possibility of a future tie-up with Tesla, stating that such a deal 'might make Elon's life a little easier' [2]. Musk has a history of merging his entities, having combined SpaceX with his AI company xAI earlier in 2026, a deal valued at $1.25 trillion that brought AI capabilities and data centers to SpaceX [2]. Tesla owns stock in SpaceX after investing in xAI, and the two companies already share resources, including engineers [2]. Shotwell emphasized her current focus on SpaceX operations but acknowledged that mergers and acquisitions, especially in the AI sector, will continue to play a role, noting SpaceX's option to buy AI-coding startup Cursor for $60 billion [2].
Analysts and market strategists highlighted the intense demand for SpaceX-related assets, with Cory Johnson of Epistrophy Capital Research attributing elevated prices in proxy stocks and ETFs to investors unable to access SpaceX shares directly [1]. Anthony Denier, CEO of Webull, predicted SpaceX could become one of the most actively traded options names among retail investors due to its high share price, volatility, and public interest [1].
CONCLUSION
SpaceX's historic IPO has reshaped the space and technology investment landscape, driving volatility in proxy stocks and ETFs while attracting immense retail and institutional interest. Speculation about a future Tesla tie-up and ongoing M&A activity in Musk's empire add further intrigue. The market response underscores SpaceX's status as a major force, with options trading and sector ETFs poised for continued activity.