As SpaceX gears up for its highly anticipated public listing, retail investors are scrambling to secure a piece of the action, with some even resorting to personal loans to boost their purchasing power. The frenzy underscores the immense enthusiasm surrounding Elon Musk’s aerospace venture, which is poised to debut with a valuation near $1.75 trillion.
According to recent reports, individuals like Anna Watts, a 33-year-old PR manager from New York, have attempted to borrow additional funds after already setting aside cash for the IPO. Watts managed to accumulate $6,500 but failed to secure an extra $5,000 from a friend or a bank, yet remains determined to invest. This behavior reflects a broader trend where investors are going beyond their means to gain exposure to what many see as a once-in-a-lifetime opportunity.
The demand has far outstripped supply, with available shares for retail investors valued at approximately $22.5 billion, while projected interest could escalate to $70 billion once trading begins. This imbalance has driven many to seek indirect exposure through funds holding private SpaceX shares, eagerly awaiting the public offering. The allure is fueled by Musk’s track record with Tesla, which transformed from a niche EV maker into a global powerhouse, leading investors to view SpaceX as a similar long-term bet.
However, the IPO is not without its clouds. Senator Elizabeth Warren has urged the SEC to delay the offering, citing concerns over investor protections and governance. Additionally, a former xAI engineer, Devin Kim, has filed a lawsuit alleging wrongful termination after raising safety issues about the Grok chatbot, which now involves SpaceX due to a recent merger. The legal challenge seeks damages including lost equity compensation.
Despite these hurdles, Wall Street remains optimistic. Oppenheimer has initiated coverage with an outperform rating and a $190 price target, well above the expected $135 IPO price. The company’s growth in commercial launches, astronaut transport, and Starlink internet services provides a solid foundation. While regulatory and legal issues linger, the dominant factor shaping the IPO narrative is the unwavering demand from Musk’s supporters, who view this as a rare chance to invest in a pioneering space enterprise.