Jeremy Grantham Calls SpaceX Craziest IPO in History as Stock Slips 7% After Nasdaq 100 Entry
Updated
Updated · Fortune · Jul 8
Jeremy Grantham Calls SpaceX Craziest IPO in History as Stock Slips 7% After Nasdaq 100 Entry
2 articles · Updated · Fortune · Jul 8
Summary
Jeremy Grantham said SpaceX is the “craziest IPO in the history of man,” arguing its prospectus promises and long-term ambitions will look absurd to future investors despite its recent Nasdaq 100 inclusion.
A 7% drop over the past month to about $150 a share has not erased bullish Wall Street targets, with Morgan Stanley at $300, Goldman Sachs at $205 and J.P. Morgan at $225.
Grantham said Nasdaq’s fast-track addition rules are creating forced buying by index-linked investors, which could lift the stock further even if fundamentals do not justify the move.
J.P. Morgan said Musk’s goal of $1 trillion in revenue by 2031 is possible only with strong execution, while warning that his 82% voting control creates governance and succession risk.
Nasdaq changed its IPO inclusion rules last month to add large, long-private companies faster, making SpaceX a test of whether index demand can sustain a richly valued debut.
With experts split and Musk holding 82% control, are investors buying a company or just a ticket to a trillion-dollar dream?
Is SpaceX's $1.25 trillion AI bet a visionary leap or a catastrophic diversion from its core space mission?
SpaceX’s Historic $2 Trillion IPO: Unprecedented Index Inflows, Volatility, and the Future of Mega-Cap Listings
Overview
SpaceX made history with its June 2026 IPO, debuting at $135 per share and quickly trading between $150 and $160, giving early investors immediate gains. The stock’s strong demand was fueled by its rapid inclusion in the Nasdaq-100 index just weeks after listing, which triggered large passive fund inflows and further boosted its market performance. This unprecedented debut set the stage for significant market impact, as SpaceX’s swift rise and index entry highlighted both the excitement and the risks of mega-cap IPOs, with investors closely watching future share unlocks and the company’s evolving valuation.