Is SpaceX IPO A True Test For Capitalism? Veteran Banker Uday Kotak Weighs In

SpaceX IPO: After SpaceX shares closed its first trading session 19% higher on Nasdaq, veteran banker Uday Kotak noted that SpaceX IPO is a true test for capitalism.

In an X post, Kotak penned, "SpaceX IPO, listing, and beyond, is a true test for capitalism. The valuation does not fit any traditional matrix and is a huge bet on the future course of planet earth."

"Only time will tell whether we, the human race, have arrived into the fairy tale world we grew up in as children, or are in a mega bubble. Either ways, kudos to the man who came as an immigrant, and to the country that has allowed such boundless creativity to flourish despite all the risks it embeds," he wrote.

The shares of Elon Musk led rocket launcher have finally begun trading on the tech heavy bourse. SpaceX shares began trading at  $150 apiece, 11% above the take-it-or-leave-it IPO price of $135. The shares closed at $160.95 per share.

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After the first trading session on Nasdaq involving SpaceX, Elon Musk has become the world’s first trillionaire.

His stake in the rocket maker company was valued at nearly $690 billion at the IPO price, while his Tesla stake makes up around $279 billion of his net worth.Meanwhile, SpaceX has also become the sixth most valuable US listed company boasting of a market capitalisation of $2.1 trillion.

On SpaceX IPO day, Elon Musk, CEO at SpaceX, said, "SpaceX is all about, is to take the fiction out of science fiction and create an exciting, inspiring future for everyone. We want to be able to take anyone who wants to go to the moon, anyone who wants to go to Mars, or anywhere in the solar system, and maybe beyond the solar system at some point, we want to be able to take you there. Not just a few astronauts, I mean you, literally you."