SpaceX IPO Creates Windfalls for Welders, Analysts Caution

SpaceX will offer 555.6 million shares at $135 apiece on Nasdaq under the ticker SPCX, targeting roughly $75 billion in proceeds and valuing the company near $1.77 trillion. The figure would make it the largest IPO by valuation on record.

Juan Hernandez, who emigrated from Mexico and joined SpaceX in 2015 as a contractor earning $28 an hour, built a stake from a $10,000 equity grant. His stock vested over five years and he bought additional shares through payroll deductions. He sold part of his holdings in 2020 to buy property in Texas; the remaining shares are worth about $880,000 ahead of the listing. Hernandez described the outcome as “It’s put me in a comfortable position for life.” He now works at Blue Origin.

A former employee, Justin Lopas, wrote on X that most welders and technicians will receive six- or seven-figure gains and that thousands of employees who otherwise would not have held company stock are set to realize large gains. He added that many rank-and-file workers were able to build stakes through early grants and payroll purchases.

Index providers have indicated plans to fast-track the stock into some benchmarks, in some cases within five days of listing. SpaceX remains excluded from the S&P 500 under current rules, but other index funds could add shares quickly. Insiders face lock-up periods that limit immediate selling, including a full lock-up on shares tied to Elon Musk. Some broker platforms apply special retail access rules that restrict the types and timing of orders for high-demand listings.

Market commentators warned that initial hype can fade. A capital-markets correspondent warned, “IPOs tend to be a bad investment for ordinary investors… In general, IPOs tend to underperform the rest of the market over time… The best moment for the seller is not necessarily the best moment for the buyer.” Academic research indicates newly listed firms often trail the broader market over the three years after an IPO.

The $1.77 trillion valuation implies a price roughly 90 times the company’s annual sales, a multiple some analysts questioned. Cryptocurrency and related token prices have reflected speculative bets on SpaceX ahead of the listing.

The company is scheduled to list next week. The first days and weeks of public trading will show how the shares perform in the market.