The largest IPO in history generated extraordinary excitement—and an equally important reminder that access to a popular investment is not the same as having a sound investment strategy.
If you are like many investors, you probably followed the recent initial public offering of Elon Musk’s SpaceX closely.
Perhaps you watched the financial news coverage on June 12 as the shares began trading. Maybe you submitted an order through your brokerage account, only to receive a fraction of the shares you requested—or none at all.
And perhaps, as SpaceX became the investment story of the moment, you felt a familiar pressure: Am I missing an opportunity that everyone else seems to understand?
That is the power of FOMO, or fear of missing out. It can make an investment feel urgent before we have determined whether it is appropriate. It can also encourage investors to confuse a fascinating company with a suitable investment at a reasonable price.
SpaceX may ultimately prove to be an enormously successful public company. Its launch technology, Starlink satellite network and artificial-intelligence ambitions are substantial businesses with potentially significant long-term value.
But that does not mean its IPO was the ultimate opportunity for every investor—or that investors needed to participate immediately.
Why the excitement became so intense
SpaceX was not a typical IPO. It combined several of the most powerful narratives in today’s market: space exploration, global broadband, artificial intelligence and Elon Musk’s extraordinary public profile.
The company also made an unusually large portion of the offering available to individual investors. Major IPOs commonly allocate only a relatively small percentage of shares to retail buyers. SpaceX reserved approximately 30% of its offering for individuals, while making shares accessible through large brokerage platforms including Fidelity, Charles Schwab and Robinhood.
That accessibility helped create the impression that ordinary investors were being offered a rare seat at the table.
The investment story was also presented as a three-in-one opportunity. Rather than buying only a rocket company, investors were gaining exposure to SpaceX’s launch business, Starlink’s connectivity network and a growing artificial-intelligence operation incorporating xAI, Grok and X.
The result was predictable: an extraordinary wave of demand from both institutional and retail investors.
An ambitious company with ambitious spending
SpaceX entered the public market with impressive revenue growth—but also with significant financial complexity.
According to its SEC regulatory filings, the company generated approximately $18.7 billion in 2025 revenue, an increase of roughly 33% from the prior year. Starlink and other connectivity operations represented the majority of revenue, while the space-launch and AI businesses accounted for the remainder.
The company also reported adjusted earnings before interest, taxes, depreciation and amortization of approximately $6.6 billion. At the same time, it recorded an operating or net loss of approximately $2.6 billion.
The more consequential number may have been its negative free cash flow. SpaceX spent heavily on Starship development, satellite infrastructure, AI computing capacity and other long-term projects. Capital expenditures reportedly exceeded $20 billion in 2025, contributing to negative free cash flow of approximately $14 billion.
That spending does not necessarily mean SpaceX is a poor business. Many innovative companies invest aggressively before their largest opportunities mature.
It does mean investors were being asked to place a very high value on earnings and cash flows that may not arrive for years—and that will depend on technological execution, regulatory approvals, capital availability and continued growth across several different businesses.
The biggest IPO in history
SpaceX priced its offering at $135 per share and sold approximately 555.6 million shares, raising $75 billion. That valued the company at approximately $1.77 trillion before trading began.
The offering was the largest IPO on record. It immediately placed SpaceX among the most valuable publicly traded companies in the United States, even though it had considerably less revenue than many companies with comparable market values.
The shares opened at $150 and closed their first trading day at approximately $161. They continued climbing, reaching an intraday high of $225.64 on June 16.
For a few days, the excitement appeared justified.
Then the honeymoon ended.
By July 23, the stock had fallen below its $135 offering price and reached a low of $115.26. On July 27, it closed at $113.50—nearly 50% below its June peak and about 16% below the IPO price, according to Reuters.
That rapid rise and decline did not determine SpaceX’s long-term value. It did, however, demonstrate the risk of buying a highly anticipated company during a period when excitement may be influencing price more than measurable results.
Most investors received few shares
Investors who wanted to participate also encountered another reality: being permitted to request IPO shares did not mean they would receive them.
Early in the offering process, SpaceX reportedly attracted approximately $150 billion in demand for a $75 billion offering. By the final days, total indications of interest were reported to be substantially higher, including more than $70 billion in retail orders alone.
Because requests greatly exceeded the shares available, brokerage firms had to ration their allocations.
Some retail investors who requested $10,000, $25,000 or even $50,000 of SpaceX shares received only one to 10 shares. Others received nothing.
That disappointment may have encouraged some investors to buy once the shares began trading publicly—after the price had already risen. It may also have made pre-IPO investment vehicles appear more attractive than they otherwise would have.
The hidden complications of pre-IPO access
Prior to the IPO, several clients contacted us about private funds claiming to provide early access to SpaceX.
These investments were generally structured as special-purpose vehicles, or SPVs. An SPV pools money from accredited investors to acquire a particular private asset. Investors purchase an interest in the SPV rather than owning the underlying company’s shares directly. These funds were only open to “accredited investors”, those big girls and boys as an individual or business, allowed to trade complex, unregistered securities like startups, private equity, and hedge funds. Set by the U.S. Securities and Exchange Commission (SEC), this status requires meeting specific wealth, income, or professional rules to handle high-risk trades. They are deemed to know better, and to be able to withstand the high risks of that risky investment structure.
That distinction is important.
An investor in a SpaceX SPV may have limited control over when the underlying shares are sold or distributed. The investment may involve management fees, carried interest, transfer restrictions, delayed tax reporting and limited liquidity. Investors may also receive a Schedule K-1 well after the beginning of tax season.
In one case, a client considered committing $200,000 to a private vehicle created to acquire SpaceX shares. Because demand exceeded the fund’s allocation, only about $30,000 of the client’s commitment ultimately gained exposure to SpaceX.
Even after the IPO, the client did not immediately receive publicly-traded SpaceX shares. The client continued to own an interest in the private vehicle, subject to its operating agreement, distribution process, tax treatment and liquidity restrictions.
The lesson was not that SpaceX was necessarily a bad investment. It was that the structure used to gain access introduced risks and complications that were separate from SpaceX’s business prospects.
A portfolio should not depend on winning the allocation lottery
At Aurelius Family Office, investing should be personalized, balanced and tied to the purpose of the capital.
We start with each client’s financial plan, liquidity needs, tax situation, time horizon and ability to withstand loss—not television commentary, social-media enthusiasm or the assumption that every major IPO must be owned.
Even families with more than $10 million of investable assets can wonder whether they have enough. More wealth does not eliminate uncertainty, and it does not make every speculative opportunity appropriate.
Speculative investments can have a place in a well-balanced portfolio, but only when they fit the strategy and do not put at risk the assets supporting a family’s lifestyle, retirement, philanthropy or legacy.
At Aurelius Family Office, we help clients navigate challenging markets with discipline and clarity. A portfolio is not built to win a news cycle or secure the hottest allocation.
It is built for something much more important: to support your life, your family and your goals—and to last.
Disclosures
Aurelius Family Office, LLC (“AFO”) is an SEC registered investment adviser. Registration with the SEC does not imply a certain level of skill or expertise. This communication is for informational purposes only, and is not intended to provide specific investment, legal, tax, or other professional advice. Investments involve risk of loss. Information regarding AFO’s services, fees, conflicts of interest and related matters can be found by clicking the following link https://adviserinfo.sec.gov/firm/summary/323016 and viewing the latest Form ADV, Part 2 Brochure and Part 3 Relationship Summary. Please visit us at https://aurelius.net/
