SpaceX debuts as the largest IPO ever at $135 per share, closing above $2 trillion market value and raising index fund inclusion fears.
SpaceX began trading on the Nasdaq at $135 per share, achieving a record $1.77 trillion IPO valuation. Shares surged 19% to close at $160.95, pushing the company’s market value past $2 trillion and making Elon Musk the first trillionaire on paper.
The IPO’s scale has triggered concerns among retirement savers, as relaxed index rules may soon include SpaceX in widely held funds like Vanguard’s Total Stock Market Index Fund. Analysts warn passive investors could automatically gain exposure to SpaceX, regardless of its 2025 losses.
Vanguard’s CIO countered the panic, arguing the alarm overlooks key distinctions in index fund mechanics. The company emphasized that inclusion does not equate to an endorsement of the stock’s fundamentals.