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SpaceX may end up in your retirement account next.
When SpaceX’s IPO debuted on June 12, that was it He broke a record on Wall Street As the highest-valued IPO in financial history, it raised more than $75 billion in cold, hard cash. The Frankensteinian merger of Elon Musk’s aerospace and artificial intelligence ventures is now one of the largest publicly traded companies in the world, with a public valuation of about $2 trillion.
Since the xAI technology is bundled within SpaceX, this is also the first time the AI giant has entered the public market, beating out competitors like OpenAI and Anthropic.
After years of private technology companies closing the books on public investment, A wave of new initial public offerings It sparked a frenzy among retail investors hungry to buy a piece of the world’s largest companies.
It’s this fever that made SpaceX’s common stock a roaring success on its first day of trading. Shares rose beyond the opening price of $135, rising 19% to $161 at the closing bell. Over the past few weeks, stock prices have risen and fallen with daily fluctuations.
Whether you plan to be financially involved in an AI company or Musk’s business venture, you may not have a choice in the matter. SpaceX shares will likely end up in your retirement account, and perhaps millions in the kids’ savings accounts. Here’s everything you need to know.
Once SpaceX listed on the stock exchange, Musk became the world’s first trillionaire.
Musk became the world’s first trillionaire (and then he wasn’t)
Musk is the CEO and largest shareholder of SpaceX and Tesla The first person in the world To reach a net worth of over $1 trillion, although his trillionaire status depends on the day of the week.
At its highest levels since SpaceX’s IPO, Musk’s net worth reached… $1.32 trillion. but Former DOGE Chairman The stratospheric level of wealth is largely tied to Tesla and SpaceX stocks, the value of which fluctuates. After stocks fall On June 23His net worth decreased to $957 billion. Musk recently He regained his trillionaire status.
Musk also claims tangible assets – SpaceX’s space hardware, Starlink satellites, Artificial intelligence servers And social media platform X, along with Tesla carsAnd solar panels Experiments in robotics technology – All of which increase the value in the company’s budgets.
Musk’s fortune is approximately related Cult image As a visionary he has a major influence on markets, culture and politics. Despite the many promises of musk Never come truehe routinely makes lofty claims about sending manned missions to Colonization of MarsProducing fully self-driving cars and creating robots similar to “Your personal R2 unit.“
SpaceX stock has seen expected volatility
Before SpaceX’s public debut last month, Major institutions such as JP Morgan SpaceX has warned that it will be a rollercoaster ride, partly due to the disconnect between the company’s massive cash burn on artificial intelligence data centers versus its lofty revenue promises.
SpaceX’s gains accelerated after the first day, with the stock hitting an all-time high of $225.64 per share on June 16. Facing tough market conditions, the stock then fell, erasing earlier gains before settling around $154 per share on June 22. By the end of June, SpaceX stock was slowly starting to recoup some of its losses, hovering around $170.
CNN reported SpaceX has consistently ranked among the top two stocks traded every day since its IPO.
SpaceX will soon launch on the Nasdaq-100. This would legally require buying stocks and adding them to the retirement accounts of millions.
SpaceX may soon be in your retirement account
SpaceX shares could soon end up in millions of 401(k) retirement accounts, even if you never choose to invest in them. A recent Nasdaq rule change allowed Musk to circumvent the usual 12-month vetting period for SpaceX’s listing, clearing the way for the company to enter the Nasdaq-100 before the market opens on July 7.
A Video report from a more perfect union It claims that Musk’s strong-armed SpaceX will automatically be bought by index funds. Critics argued that the move quietly shifts risk to everyday households and retirees, whose investment accounts will take a hit when the market declines. Senator Elizabeth Warren, a Democrat from Massachusetts, urged the United States to do so Securities and Exchange Commission to investigate (PDF), warning that the move sets a “dangerous precedent” for future IPOs.
Analysts like former economic adviser Jared Bernstein say avoiding such exposure can be difficult because index fund structures make it difficult for you to opt out. “These tech bros are using their enormous market influence to pile these potentially volatile and yet unprofitable assets into millions of retirement accounts.” Bernstein wrote on Substack.
Musk is still firmly in power
As SpaceX’s largest shareholder, Elon Musk owns approximately 42% of SpaceX shares outstanding. Even without owning a majority of shares, this stake translates into control.
Much of Musk’s ownership comes in the form of Super voting sharesThis gave him 85% of the voting power and a decisive influence over the future of SpaceX.
This level of power is evident in major technology companies. Many Silicon Valley founders, such as billionaires Bill Gates and Peter Thiel, have done so Completely stripped themselves from it Their initial brainchild. Others have reduced their stakes significantly: Mark Zuckerberg owns 13% of Meta, while Sergey Brin owns 6% of Alphabet, Google’s parent company.
Individual investors were unusually well represented in buying SpaceX IPO shares.
Retail investors have been pulled into the mix
When a large company goes public, most of the shares are usually gobbled up by powerful Wall Street players and institutions: banks, hedge funds and mutual funds. A small amount of shares, usually around 10%, are usually allocated to retail investors, that is, ordinary people who buy and sell investments for themselves.
SpaceX was distinguished by having a much larger share – 30% – of retail investors. But this did not necessarily translate into wider access. Financial Times editor Robin Wigglesworth pointed this out An unusually large allocation to retail could indicate weak demand from professional investors. The problem is that when shares are distributed, the onus shifts to less-sophisticated buyers, who then have to absorb wild swings in SpaceX’s valuation.
Despite the larger cut for retail investors, demand still outpaced supply, and there were not enough shares to distribute to ordinary investors during the IPO. According to CNBC. Some chose to Sell instantly on day onea factor that may have contributed to SpaceX’s high turnover.
SpaceX hasn’t actually reported any earnings
SpaceX generates huge revenues, but it still operates at a loss. Information reported Although the company generated revenues of more than $18.5 billion in 2025, Musk’s aviation and artificial intelligence company still lost nearly $5 billion.
One of the main reasons is massive spending on “chips and data centers” to power AI projects, which cost SpaceX $13 billion last year. Decreases in the value of rockets, satellites and other aerospace equipment accounted for another $6.6 billion in expenses.
Negative cash flow aside, the market’s enthusiasm for SpaceX shows that it is still valued as a future force. This disconnect reflects a broader pattern in technology and AI in particular, where expectations are high even when profits are small. Musk’s soaring wealth is part of the same “sentiment-based accounting,” where market hype outweighs actual financial results.
Musk appeared at rallies for Trump’s 2024 presidential campaign, cementing the working relationship between the two wealthy elites.
Musk and SpaceX could boost Trump again
Musk’s relationship with President Donald Trump could improve again, at least enough for SpaceX to feature in conversations about Trump’s new administration’s financial accounts for the kids. Semaphore reported That officials discussed donating SpaceX stock to establish the accounts.
Trump’s accounts were designed to serve as IRA-style investment accounts for children, with the goal of paying off the next generation To participate in the stock market. Some supporters see it as a way to encourage long-term investment, while critics see it as a way to encourage long-term investment Raise concerns The accounts would disproportionately benefit affluent American families.
Tensions between Musk and Trump appear to have eased in recent months, after a very public spat and disagreement Social media brawl Concerning the White House budget bill last year. If SpaceX shares end up inside those accounts, it would give the program a very direct link to Musk and a very visible role in a politically backed investment push.
SpaceX may have sent a red signal to OpenAI
SpaceX’s record-breaking debut may have shaken up OpenAI’s plan to go public. according to New York TimesCEO Sam Altman has been exploring an initial public offering as soon as this year, with bankers and lawyers pushing for a valuation approaching $1 trillion. OpenAI will now likely have to wait until 2027 to make its publicly traded debut. According to the people participating in the deliberations.
Although it’s impossible to pinpoint a specific reason for the change of heart, moving forward with an AI IPO in a market skeptical of SpaceX’s high valuation may be what scares Altman. OpenAI advisors have reportedly warned the company against moving too early, warning that it lacks the built-in Musk-driven interest that helped SpaceX make its market debut.
Institutional investors, who form the backbone of any public offering, may not react with the same enthusiasm to a less established company that is also operating at a massive financial loss. And after experiencing the market volatility associated with SpaceX’s IPO, retail investors may not be so quick to open their wallets to OpenAI as well.
