Francesca Rudkin: What's next for SpaceX and investors?

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Recorded13 Jun 2026

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Last week, an Ashburton family won 28.6 million in the Powerball draw. Just imagine how overwhelming that must be. We all dream about it, but the reality of managing such a windfall and all that comes with it is more complicated than the fantasy. Then this week, the world got its first trillionaire and suddenly getting your head around a huge windfall got even more surreal, and the wealth gap got so much more confronting. With the SpaceX float, the public got to invest in Elon Musk’s dream of humans on Mars and data banks in space. The biggest float in history, the shares opened at US$150, then rocketed up to $168 within an hour. This price gave the company a market value of US$2.21 trillion - Musk himself is now worth around US$1.1 trillion according to Forbes. A trillion is a thousand billion. These are inconceivable amounts for all of us. What’s really interesting about this IPO is that on paper, and using traditional valuation methods, many experts felt the company was overvalued - but these reservations didn’t stop investors from flocking to be part of the dream. SpaceX lost around $4.9 billion in 2025, and is trading at around 90-95 times its annual revenue. Many analysts argue its valuation is out of whack with what the business fundamentals support, with some estimates putting fair value at roughly half the IPO valuation. So, what does this IPO tell us about investors, about ourselves? It tells us that in this time of uncertainly, economic pressures, and geopolitical chaos, we still love a good story. And man, does Elon Musk know how to sell a good story. Investors are valuing SpaceX not as a company, but as a platform for multiple future industries. It’s not about its present profitability - there is none, it’s about what it could become. Much like Amazon and Telsa when they were first floated - but super-sized. This is a story about spaceships, orbital infrastructure, AI computing, and creating a one million person Martian colony. According to SpaceX it’s about saving humanity by establishing other outposts in space, as well as massive AI data centres. And to do all this Space X needs money. Lots and lots of money. I quite like that people are buying into this sci-fi future, the Mars shot. It’s ambitious, adventurous, and SpaceX’s vision is much more fascinating than almost all other companies. It’s clear why investors flocked to buy - if you had the chance, why wouldn’t you buy into what could become the defining company of the 21st century. And that’s the next interesting aspect of this IPO. As much as investors have shown they have faith in Elon Musk, how well will the share price hold up? If you are keen to invest through the S&P 500 - you will have to wait 12 months. Who knows what the share price will be. I suppose that’s the fun in being an investor. LISTEN ABOVESee omnystudio.com/listener for privacy information.

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