SpaceX's IPO is on track to be one of the largest ever, with projections to raise $75 billion from 555.6 million shares priced at $135 each. Banks are expected to close orders from institutional investors on Wednesday, reflecting significant market excitement.
Investment experts hold mixed opinions about its potential.
"While the stock could jump due to excitement surrounding Elon Musk's companies, Johnson said it’s still too risky an investment," warns one analyst. On the other hand,
Link stated she would buy the stock, albeit with a small allocation—reflecting a divergence of strategies among investors.
The IPO could have substantial impacts beyond individual portfolios.
“When this thing goes public, the California economy is just going to boom,” said Ross Gerber, highlighting the implications for state tax revenues as newly wealthy employees may face high tax rates. Owen Zidar, a Princeton economist, added,
“It seems quite plausible to me that California collects far more than Texas” due to favorable tax structures.
Despite the optimism, caution is mandatory.
SpaceX needs to grow revenue by 30x in four years to justify its current valuation as it competes in a market where IPO shares are typically swept up by both institutional and retail investors, with
30% of the IPO shares allocated to retail buyers, ensuring widespread participation.
As excitement builds, the offering is both hailed as a potential investment boon and viewed through a lens of risk by wary analysts, reflecting the unique position SpaceX holds in the tech and financial ecosystems.
Sources: 
SpaceX's initial public offering is significantly oversubscribed, indicating robust investment interest as the company prepares to close orders Wednesday. Priced at $135 per share, the offering aims to raise about $75 billion, potentially marking the largest IPO ever, according to those familiar with the matter.
