SpaceX is pressing ahead with an initial public offering at a valuation of $1.77 trillion, pricing shares at $135, drawing retail investor money despite controversy over whether it is overvalued. CNBC reported on June 12 that the retail allocation is in the low 20 percent range, above the typical 5 to 10 percent for IPOs.

SpaceX set the offering price ahead of its listing on June 13. At that price, its market capitalisation would rank about seventh in the United States and exceed Tesla's. Critics say the valuation is too high, but some retail investors are betting on a sharp jump on the first trading day.

Some retail investors say SpaceX's valuation is absurd and irrational, but are still jumping into short-term trading on expectations the shares could rise at least 30 percent on the first day. The market view is that demand mixes short-term profit-taking with long-term holding.

As retail participation rises, the barrier to access has also fallen. Fidelity set a minimum account balance requirement of $2,000 for this IPO. That is far below the $100,000 to $500,000 typically applied in IPOs. Still, investors who sell allocated shares within 15 days after listing could face restrictions on participating in future IPO offerings.

SpaceX's high valuation is being linked to large contracts it recently secured. Michael Monahan of Founder ETF said contracts with Anthropic and Google were reflected in forecasts, lifting projected 2026 revenue by more than twofold. Anthropic agreed to pay $1.25 billion a month through May 2029, and Google agreed to pay $920 million a month for 32 months.

Some investors are cautious about buying immediately after the listing. Ross Cameron, who runs a trading education platform, said he would see a large allocation as a sign of weak demand. Long-term investor Haylin Markham said Starlink is a near-term growth driver and space-related businesses are a long-term growth pillar, and said he intends to hold for more than 10 years.