SpaceX's Historic IPO Raises $85.7 Billion

The largest IPO in history has officially broken records, with SpaceX raising $85.7 billion in its initial public offering (IPO). The company's shares opened at $150 on the Nasdaq public exchange, an 11% pop for the most anticipated debut in history.

Elon Musk, who holds 85.1% of the company's voting power, has become the world's first trillionaire, with a net worth exceeding $1.75 trillion.

• The IPO, which priced at $135 per share, was oversubscribed, with investors clamoring to get a piece of the action.
• The deal was announced just days after the IPO, with SpaceX acquiring Cursor for $60 billion in stock.
• SpaceX's valuation has ballooned to $2.7 trillion, making it the fifth-most valuable company in the world.

The Implications of a Publicly Traded SpaceX

With an offering this large, there is a lot of financial machinery operating behind the scenes. The first question is just when the stock makes it to the market to start trading. SpaceX is debuting on Nasdaq, and the official listing can be seen here.

According to CNBC, the company's losses have been significant, with over $37 billion lost since its inception. However, the outlook for the company's future prospects remains bright, with a focus on its Starlink satellite internet offering and xAI division.

• The S-1 registration document gave the world an unprecedented look inside SpaceX, including its financials and various businesses.
• The company has locked in a string of deals, mostly selling off compute to improve its balance sheet.
• Anthropic will pay xAI $1.25 billion per month for compute, while Google will pay SpaceX $920 million per month for compute.

The Future of SpaceX

As a publicly traded company, SpaceX will be subject to increased scrutiny and regulatory requirements. However, the company's leadership remains optimistic about its prospects, with Elon Musk stating that the IPO will make his life "a little easier."

The company's acquisition of Cursor for $60 billion in stock has also raised eyebrows, with some analysts predicting that this could be a step towards a potential merger with Tesla.

• The deal has been hailed as a major win for the banks involved, with Goldman Sachs and Morgan Stanley reportedly taking home around $500 million in fees.
• The SpaceX IPO has also raised concerns about the potential for dilution, with the company warning investors of future dilution in its S-1 filing.

The Winners and Losers of the SpaceX IPO

While some investors and employees stand to win big from the IPO, others may lose out. The company's lower-tier SPV investors, for example, face hidden fees, lengthy payout delays, and the risk of outright fraud.

Elon Musk's grip on the company will only increase with the IPO, with him holding over 50% of the voting power.

• The company's valuation has skyrocketed, with some analysts predicting further growth.
• The IPO has also raised concerns about the potential for a Tesla merger, with some predicting that this could be a step towards a major consolidation in the tech industry.