SpaceX momentarily surpassed Amazon to secure its position as the world's fifth-most valuable company, and nearly outpaced Microsoft, before its share prices moderated those gains by the close of market trading on Tuesday.
The newly public entity had already witnessed a 20% surge in its stock value on Monday, marking its initial full day of trading. Further momentum on Tuesday stemmed from the announcement of SpaceX's acquisition of AI coding firm Cursor, coupled with the commencement of options trading for its shares. These factors propelled its valuation to an peak of $2.9 trillion before a subsequent stabilization.
This remarkable market performance occurred despite SpaceX reporting a $4.9 billion loss against $18.7 billion in revenue last year. In contrast, Amazon recorded a $78 billion profit from $717 billion in sales in 2025. However, SpaceX has diversified its income streams through recent compute leasing agreements with Anthropic and Google, and is set to integrate revenue from Cursor upon the acquisition's finalization in the third quarter.
Despite the non-binding nature of the agreements with Anthropic and Google, investors appear largely undeterred. Elon Musk's integrated space and artificial intelligence enterprise has, notably, augmented its valuation by approximately $1 trillion since its public debut on Friday.
The initial public offering successfully secured nearly $86 billion in new capital for SpaceX, primarily fueled by aspirations of establishing an AI business valued in the trillions of dollars. This ambitious claim is particularly noteworthy given that the company had recently undertaken a significant restructuring of its AI division.
SpaceX initially disclosed its collaboration with Cursor in April, coinciding with Elon Musk's statement that his AI venture, xAI — now integrated into SpaceX — "was not built right [the] first time around" and was undergoing a reconstruction "from the foundations up." The acquisition itself is being financed with $60 billion in SpaceX company shares.
SpaceX's landmark IPO launched with an initial valuation of approximately $1.7 trillion, generating nearly $86 billion for Musk's enterprise. With only about 4% of its total shares made available for public trading, market analysts had anticipated increased susceptibility to significant price volatility.
This prediction materialized on Tuesday, with traders exchanging over 300 million SpaceX shares during the trading session – exceeding half of the 555 million shares made available on the public market following the IPO, according to data from the Nasdaq stock exchange.
The pronounced volatility persisted into after-hours trading, during which SpaceX's valuation momentarily surpassed Amazon's market capitalization for a second occasion before receding once more.
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