SpaceX Surpasses Amazon in Market Value, Driven by Elon Musk’s Rising Aerospace Empire

SpaceX shares surged more than 8% on Tuesday, lifting the company’s market value above Amazon and making it the world’s fifth-most valuable company. The stock last traded up 8.7% at $209.30, more than 54% above its $135 IPO price, implying a valuation of about $2.75 trillion if gains held. That would place SpaceX behind only Microsoft and the three largest public companies, all valued at more than $4 trillion.

The rally came despite skepticism from some market observers, who argued the valuation was difficult to justify based on current fundamentals. SpaceX reported $18.67 billion in sales last year and a net loss of $4.94 billion after merging with loss-making xAI, in contrast to the strong earnings posted by many large technology companies. Analysts said the stock’s rise was being driven partly by speculation, momentum and expectations of further buying rather than traditional valuation metrics.

Trading in SpaceX options also began on Tuesday, adding a new layer of activity to the stock. Market participants said heavy call-option demand could force dealers to buy shares in a market with limited liquidity, potentially amplifying price swings. More shares are not expected to become available for one to two months, which could keep the float tight in the near term.

Investors are also watching a wave of index inclusion that could create additional demand. SpaceX is set for fast-track entry into the Nasdaq 100, a move that would make it a significant holding for passive funds and exchange-traded funds that track the benchmark. FTSE Russell and MSCI are also scheduled to add the stock to their indexes later in June, with effective dates of June 26 and June 29.

Some brokerage firms said this combination of passive inflows, momentum trading and limited supply could drive the stock higher than typical index additions. Zephirin Group initiated coverage with a buy rating, saying the setup could support further upside even if index inclusion alone is usually not enough to sustain a rerating.

SpaceX also announced that underwriters exercised the “greenshoe” option, raising total IPO proceeds to $85.7 billion from the $75 billion initially raised last week. More than $9.1 billion worth of shares changed hands by 9:32 a.m. ET, far exceeding trading volumes in Nvidia, Microsoft, Tesla and Apple combined. Meanwhile, shares of other major technology companies, including Nvidia and Microsoft, were slightly lower.

SpaceX shares trimmed some of their premarket gains after the company said it would acquire software firm Anysphere for $60 billion. Even so, the debut has already made SpaceX one of the most closely watched stocks in the market, with investors debating whether the valuation reflects future growth or a speculative surge driven by scarcity and momentum.