SpaceX (NASDAQ:SPCX) shares continued their remarkable advance in premarket trading on Tuesday, building on strong gains from their first two sessions as a public company and pushing the aerospace group toward a market capitalization of nearly $3 trillion.
The rocket and satellite operator completed the largest initial public offering in history last week, ending its first day of trading on Friday with a valuation of approximately $2.1 trillion.
Shares Extend Historic Debut Gains
After rising 19.6% during Monday’s session to close at $192.50, the stock added another 10% in premarket trading on Tuesday, reaching roughly $211.75 by 08:15 GMT.
At one stage following Monday’s close, SpaceX shares climbed as high as $229.40, briefly implying a valuation above $3 trillion.
That valuation would have placed the company ahead of Microsoft and made it the fourth-largest listed company in the world, trailing only Alphabet Inc (NASDAQ:GOOGL), Apple Inc (NASDAQ:AAPL) and NVIDIA Corporation (NASDAQ:NVDA).
Investors Back Musk’s Long-Term Vision
Much of the enthusiasm surrounding the stock has been driven by investor confidence in Elon Musk’s ambitious plans for the future of the business.
The chief executive has outlined a strategy that includes deploying artificial intelligence data centres in space, expanding satellite communications infrastructure and advancing lunar and Martian exploration missions.
SpaceX entered the public markets at a valuation equivalent to roughly 90 times annual revenue, reflecting expectations for significant long-term growth.
IPO Marks Beginning of New Growth Phase
Speaking during a JPMorgan Chase webcast ahead of the listing, Musk said the company had generated positive cash flow since around 2015 and described the flotation as the beginning of “a significant growth phase.”
Among the initiatives highlighted by Musk were plans to deploy more than 100,000 communications satellites into orbit and expand the company’s role in supporting next-generation computing infrastructure.
Starlink Remains the Key Profit Driver
Starlink, SpaceX’s satellite broadband division, was the company’s only profitable business segment during 2025 and is widely viewed as its most valuable asset.
The unit continues to play a central role in the company’s investment case, providing recurring revenue through global connectivity services while supporting broader expansion plans.
Space Economy Forecast to Triple by 2035
Analysts at Jefferies, in research republished to coincide with the IPO, highlighted the growing importance of the global space sector.
The broker argued that “space is now a strategic industrial sector” where geopolitical priorities and government spending in the United States and China are likely to drive future returns.
Jefferies estimates the global space economy has reached approximately $600 billion and could expand to $1.8 trillion by 2035, with defence-related activity expected to be the fastest-growing segment.
Government Spending Supports Industry Growth
According to Jefferies, the U.S. accounts for around 60% of global government space expenditure, spending roughly $80 billion annually, compared with approximately $20 billion spent by China.
The broker also noted that the U.S. Space Force budget increased by 40% year-on-year in fiscal 2026, reaching $40 billion as investment accelerated under the Golden Dome missile defence programme. That compares with NASA’s budget of approximately $24 billion.
“The U.S. government has effectively outsourced significant space activity to SpaceX, creating an inextricable linkage between federal spending priorities and the company’s business,” the analysts wrote.
Major Government Contractor
SpaceX has become one of the largest commercial partners of NASA and ranked as the agency’s second-largest contractor by contract value in 2025, behind only Caltech.
The company secured approximately $2.1 billion in NASA contracts during the year, spanning launch services, communications capabilities and information technology infrastructure, further strengthening its position within the rapidly expanding space industry.
Want to stay up-to-date on the SpaceX IPO? Find the top asked questions from investors and follow their every move here: https://invest.investorshub.com/spacex-ipo-watch/