SpaceX, Elon Musk's private space exploration company, has achieved a significant milestone by surpassing Amazon in market capitalization. Following a substantial surge in its stock value, SpaceX's valuation now stands at an impressive $2.66 trillion, eclipsing Amazon's $2.65 trillion.
This remarkable financial ascent has further cemented Elon Musk's position as the world's first trillionaire. Over just three days following SpaceX's initial public offering (IPO), Musk's personal fortune saw an astonishing increase of $349 billion. This gain alone exceeds the entire net worth of Larry Page, co-founder of Google and currently the world's second-richest individual, whose total wealth is estimated at $317 billion.
SpaceX IPO and Market Performance
SpaceX made its debut on the Nasdaq exchange on June 12, marking the world's largest IPO. The stock was listed at $150 per share, representing an 11.11 percent premium over its issue price of $135. At this initial listing price, SpaceX commanded a market value of $1.96 trillion, which was the point at which Musk officially became a trillionaire.
Musk maintains a substantial stake in the company, owning 49 percent of SpaceX and retaining 82 percent of its voting power even after the IPO. On Tuesday, the company's shares closed 4.83 percent higher at $201.80, up from its previous close of $192.50, having reached a high of $225.64 during its brief trading history.
Valuation Concerns Amidst Rapid Growth
The rapid escalation of SpaceX's market valuation has prompted some financial analysts to question its underlying metrics. Gurmeet Chadha, Co-Founder, Managing Partner, and Chief Investment Officer (CIO) at Complete Circle, highlighted this sentiment in a recent post. Chadha pointed out that SpaceX achieved a market capitalization exceeding $2 trillion despite generating annual revenues of $18.7 billion.
In light of these figures, Chadha humorously suggested the need for new valuation metrics, proposing a "P/D: Price-to-Dreams Ratio" or "EV/EL: Enterprise Vision to Expected Losses." He remarked, "bigger the vision, higher the loss tolerance," reflecting the unique nature of valuing a company with ambitious, long-term goals like SpaceX.