SpaceX stock soars in debut and makes Elon Musk the first trillionaire

NEW YORK (AP) — Elon Musk became the world’s first trillionaire after shares of his rocket company SpaceX soared in Wall Street's biggest initial public offering of stock.

Shares in SpaceX jumped more than 19% after opening for trading Friday, a sign that investors are looking past the billions the company is losing and instead betting that its massive investments in satellites, orbital data centers and artificial intelligence will pay off in the future.

SpaceX opened around midday at $150 a share, then rose to around $168, before finishing the day just below $161. That price gave the company a market value of $2.1 trillion, making it the sixth largest public U.S. company — larger even than its founder and CEO's other big business, the electric vehicle maker Tesla.

Between his holdings in SpaceX and Tesla, where he is also CEO, Musk is now worth an estimated $1.1 trillion, according to Forbes.

Musk says SpaceX, founded in 2002, is going public now because it needs money to fund its ambitions of putting satellites and data centers in space and eventually establishing a colony of people on Mars.

He marked the opening of trading on Nasdaq by joining a ceremonial bell ringing from Starbase, the South Texas home of SpaceX.

He reiterated his lofty goals “to make life multiplanetary.”

“Not just a few astronauts, I mean literally you,” Musk said. “Whoever you are watching this, SpaceX wants to be able to take you to the moon, take you to Mars and ultimately beyond.”

Known for his technological breakthroughs, as well as wild claims and missed deadlines, Musk was able to whip up enthusiasm for the IPO. The typical company going public has seen a 7% jump in its first day of trading, from 1980 through 2025, according to Jay Ritter, a professor at the University of Florida’s Warrington College of Business.

Institutional and retail investors alike jumped at the opportunity to buy a piece of the company at $135 per share before trading began. The $75 billion in proceeds SpaceX raised easily topped the previous record IPO from oil giant Saudi Aramco in 2019.

In addition to establishing a one-million person Martian colony, the company has promised to save humanity by establishing other outposts in space, launch data centers the size of football fields into orbit and outdo rivals Anthropic and OpenAI in the race to make money from artificial intelligence.

To reach its goals, SpaceX needs billions more than it currently takes in from its rocket and satellite business. Between the start of 2025 and March 31, 2026, the company, formally known as Space Exploration Technologies Corp., lost $8.7 billion.

Betting on SpaceX is in many ways a bet on Musk himself. In an unusual arrangement that has drawn criticism from shareholder watchdogs, he holds 82% interest in a special B class of shares, giving him sweeping power to control the company even though his ownership stake is about half that.

“There’s a lot of hype, but I see the faith that investors have in Musk,” said Yordys Coro, an IT support contractor in Miami as he watched his $14,000 investment in SpaceX shoot up to $17,000 in just a few hours. “I’m going to hold on.”

Wall Street bankers that helped take SpaceX public are also enthusiastic about the company — and the big fees they will earn — but not everyone thinks the stock price is justified.

Analysts at research firm Morningstar, which doesn't earn any investment banking fees, wrote that the IPO is “significantly overvalued."

Citing SpaceX’s technology challenges, including shielding its orbiting datacenters from radiation damage and catching up to leaders in AI such as Anthropic and OpenAI, they estimated the company is only worth $780 billion — less than half its IPO value.

SpaceX itself has hinted at the challenges, conceding in regulatory documents that some of its business plans rest on “unproven technologies.” It also indicated that another part of the company, its artificial intelligence business called xAI, has no clear path to profitability and is burning cash to catch up with rivals.

On a livestreamed conference Thursday with the CEO of JPMorgan Chase, one of the investment banks making big money off the IPO, Musk offered few details.

He entertained the crowd with talk of “moon hotels,” a future Martian colony and a network of Earth-orbiting data centers powered by the sun. But when asked about plans for his flagship chatbot offering Grok, he pivoted to talking about his satellites.

Still, Musk has pulled off the seemingly impossible before.

The now-trillionaire — on paper at least — made his initial fortune by creating two companies, Zip2 and PayPal, that netted him about $200 million at sale. He used that money to start SpaceX and invest in Tesla, and defied the odds by creating a space company that figured out how to reuse rockets and a car company that made electric vehicles cool.

Musk has realized vast sums of wealth for himself, much of it in stock he has yet to cash in or grants for shares he’ll only receive if Tesla or SpaceX hit ambitious performance targets.

His recent pay package from Tesla was so large it even drew criticism from the Vatican. At Tesla, he’s worried shareholders by fighting with regulators or dividing his attention between multiple companies and last year by taking a role in the Trump administration.

But a rising stock price has cured all ills: Since it went public in 2010, Tesla has returned 20,000% for shareholders, or more than $1.2 trillion in investor wealth.

SpaceX is the first of three “megacap” companies expected to go public this year, with Anthropic and OpenAI to follow. Nasdaq even revised its rules to allow SpaceX to gain entry into funds tied to its indexes in 15 days, which means investors will end up buying the rocket maker's shares much earlier.

Not all investors are thrilled about SpaceX potentially showing up in their holdings of index funds.

Officials from pension funds for firefighters, teachers and other workers in California and New York sent a letter to SpaceX last month decrying some of the provisions in its IPO, including mandatory arbitration of shareholder claims and how much power Musk will hold over the company.

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AP reporters Stan Choe and Wyatte Grantham-Philips contributed from New York and reporter Matt O'Brien contributed from Providence.

Gwynne Shotwell, President and COO of SpaceX, third from right, celebrates with colleagues during a bell ringing ceremony for the IPO of SpaceX at the Nasdaq MarketSite in New York, Friday, June 12, 2026, in New York. (AP Photo/Frank Franklin II)

A large inflatable figure depicting Elon Musk stands in Times Square in New York on Thursday, June 11, 2026. (AP Photo/Seth Wenig)

Gwynne Shotwell, President and COO of SpaceX speaks during a bell ringing ceremony for the IPO of SpaceX at the Nasdaq MarketSite in New York, Friday, June 12, 2026, in New York. (AP Photo/Frank Franklin II)

Gwynne Shotwell, President and COO of SpaceX celebrates with colleagues during a bell ringing ceremony for the IPO of SpaceX at the Nasdaq MarketSite in New York, Friday, June 12, 2026, in New York. (AP Photo/Frank Franklin II)

FILE - Elon Musk departs after a welcome ceremony with President Donald Trump and China's President Xi Jinping at the Great Hall of the People, Thursday, May 14, 2026, in Beijing. (AP Photo/Mark Schiefelbein, File)

DUBAI, United Arab Emirates (AP) — The U.S. military says two troops are dead and one is missing after Iranian attacks on a base in Jordan. They are the first U.S. deaths due to direct Iranian fire since the opening days of the war.

A statement says they were killed Friday as the U.S. and partner forces defended against Iranian ballistic missile and drone attacks. These are the first U.S. deaths due to Iranian fire since the opening days of the war.

It says four other service members who were were medically evacuated to Jordanian hospitals were later discharged.

The dead were not identified.

THIS IS A BREAKING NEWS UPDATE. AP’s earlier story follows below.

DUBAI, United Arab Emirates (AP) —

THIS IS A BREAKING NEWS UPDATE. AP’s earlier story follows below.

DUBAI, United Arab Emirates (AP) — Iran’s supreme leader warned of “unforgettable lessons” Saturday if the United States keeps attacking the Islamic Republic and called President Donald Trump’s signature “worthless and invalid." The comments came hours after a negotiator said Tehran was suspending its commitments to the interim deal signed about a month ago.

The statement attributed to Mojtaba Khamenei, still unseen since the war began, was read out on state television after the United States and Iran again exchanged strikes aimed at infrastructure and military targets.

Tehran's declarations snapped another fragile thread as the war shows no end in sight. The deal was aimed at permanently ending the fighting. Now Khamenei warns of “lessons” not only from Iran but its armed proxies in the region, calling them the “Axis of Resistance.”

The battle over the Strait of Hormuz has intensified in a conflict increasingly focused on control of the essential waterway that previously carried a fifth of the world's crude oil. The widening strikes threatened civilians and services to them, including desalination plants for drinking water, while the global economy again was on alert.

The U.S. Central Command said early Saturday that its seventh straight night of strikes hit “surveillance sites, military logistics infrastructure, underground weapons storage, and maritime capabilities.”

The U.S. has violated its commitments under the deal that was signed about a month ago and now Iran is “no longer implementing them,” Kazem Gharibabadi, Iran’s deputy foreign minister, told state TV.

There was no new word on mediation efforts.

The most significant damage from Iranian strikes on Saturday occurred in Kuwait, where a water desalination plant and an oil facility were hit, according to the Kuwait authorities and the Kuwait Petroleum Corporation. Both declined to provide locations.

The strikes injured several people at the oil facility and caused a fire at the desalination plant, forcing several power generation units offline. It was the second attack against a desalination plant in two days in the tiny desert nation that depends on desalination for 90% of its drinking water.

Several firefighters and a worker were injured while battling two other blazes sparked by Iranian strikes, according to the Kuwait Fire Force. Kuwait briefly closed its airspace due to missile threats, and Kuwait Airways said it was rescheduling most flights to and from the capital.

Meanwhile, Iraq said it shot down attack drones over the city of Irbil. Jordan’s state-run Petra news agency said the kingdom’s air defense systems had downed Iranian missiles, while air sirens sounded multiple times in Bahrain throughout the day and in Saudi Arabia in the morning, according to their governments.

The secretary general of the six-nation Gulf Cooperation Council, Jasem Mohamed al-Budaiwi, accused Iran of war crimes for strikes on infrastructure and civilian facilities.

U.S. airstrikes hit an electricity and desalination plant in Iran’s southern Hormozgan province, Iranian state TV reported. IRNA said the Bonji desalination plant was destroyed, cutting off water supplies to about 10,000 people, and that a desalination plant on strategic Qeshm Island inside the strait was damaged.

Overnight strikes damaged two tunnels and a bridge, disrupting one of the main highways toward Bandar Abbas, Iran’s main port that sits near the narrowest part of the strait, according to Iran's state-run news agency. IRNA said three bridges were hit Saturday, including one on a route to Bandar Abbas.

Iran acknowledged “attacks on power infrastructure” during the U.S. airstrikes for the first time Friday when its Energy Ministry issued a call for people to use less power in southern provinces “experiencing extreme heat.” It did not specify what was hit.

The Islamic Revolutionary Guard Corps stepped up its warning that countries hosting U.S. forces should be “prepared to receive a corresponding response,” according to Iran’s state TV.

Iranian authorities said at least 50 people have been killed and more than 500 wounded in U.S. strikes in the past three weeks, including eight killed in a strike on a bridge Friday.

U.S. officials acknowledged 13 additional U.S. service members — 10 Army soldiers and three Navy sailors — had been injured since Monday, but offered no details. Since the war began, 14 U.S. service members have been killed and 427 wounded.

Iran effectively closed the strait to shipping traffic after the war started with U.S. and Israeli strikes on Feb. 28. That sent the price of oil soaring and has given Tehran significant leverage in negotiations.

Iran has said the strait must be under its sole control and that vessels should pay fees to Tehran, even though the world for decades has considered it an international waterway. It fired on ships on recent days. Crossings through the strait fell to a three-week low, according to an international shipping tracker.

Trump has resumed threats to target power stations and bridges to try to compel Iran to loosen its hold. The U.S. in the past week reimposed a naval blockade on Iranian ports to halt its shipments of crude oil.

A growing amount of the region’s energy is being shipped through pipelines, but not nearly enough to offset the decline in shipping.

Before the war began, the U.S. had been in talks with Iran over its nuclear program. Trump now faces political pressure to end the war and avoid the kind of prolonged Middle East conflict he had campaigned against.

Ezzidin reported from Cairo. Associated Press writers Amir Vahdat in Tehran; Melanie Lidman in Tel Aviv, Israel; Stella Martany in Irbil, Iraq; and Konstantin Toropin in Washington contributed to this report.

A man displays a placard with portraits of the current and late supreme leaders and the late Revolutionary Guard Gen. Qassem Soleimani at the Islamic Revolution Square in downtown Tehran, Iran, Saturday, July 18, 2026. (AP Photo/Vahid Salemi)

People look at books which are placed for sale on a street in downtown Tehran, Iran, Saturday, July 18, 2026. (AP Photo/Vahid Salemi)

A woman walks past a mural depicting a portrait of the late Iranian Supreme Leader Ayatollah Ali Khamenei, who was killed in the U.S. and Israel strike on Feb. 28, in downtown Tehran, Iran, Saturday, July 18, 2026. (AP Photo/Vahid Salemi)

Pro-government demonstrators gather at a square in Tehran, Friday, July 17, 2026. (AP Photo/Vahid Salemi)

Pro-government demonstrators gather at a square in Tehran, Friday, July 17, 2026. (AP Photo/Vahid Salemi)

Women sit beneath a banner reading in English, "Kill Trump," during a pro-government rally in Tehran, Friday, July 17, 2026. (AP Photo/Vahid Salemi)

Women gather during a pro-government rally as one holds a sign reading in English, "Kill Trump," in Tehran, Friday, July 17, 2026. (AP Photo/Vahid Salemi)

Pro-government demonstrators gather at a square in Tehran, Friday, July 17, 2026. (AP Photo/Vahid Salemi)