SpaceX IPO Valued at $1.75 Trillion Amid Concerns

SpaceX is set to go public with an initial public offering (IPO) valued at $1.75 trillion, despite having a low free float of only 4%. This low percentage indicates that only a small portion of shares will be available for trading, which could lead to significant price volatility.

In 2025, SpaceX reported a net loss of nearly $5 billion, a stark contrast to its previous profitability. The company's revenue is heavily supported by government contracts, including a notable $4.16 billion contract with the U.S.

Space Force, which constitutes 20% of its total revenue. Elon Musk has been linked to political contributions supporting Donald Trump's campaign, raising concerns about potential conflicts of interest.

The NASDAQ has altered its rules to allow SpaceX to join the NASDAQ 100 index within 15 days of its IPO, despite the low free float, which could compel index funds to purchase shares, impacting ordinary investors.