Retail traders are scrambling to secure shares of SpaceX ahead of its highly anticipated initial public offering, with some reportedly seeking bank loans to boost their purchasing power. The frenzy has pushed demand far beyond the available supply, according to a Bloomberg report.
Bloomberg noted that some investors have gone beyond saving cash and have attempted to borrow additional funds to secure a piece of Elon Musk’s rocket and satellite company. The rush comes as SpaceX prepares for one of the most closely watched public offerings in recent years, carrying a valuation of around $1.75 trillion.
One such investor is Anna Watts, a 33-year-old public relations manager from New York. Watts told Bloomberg she had saved $6,500 for the offering and unsuccessfully tried to borrow another $5,000 from a friend and a bank. Despite the rejected loan requests, she remains committed to participating in the IPO.
Retail Demand Surpasses Available Shares
Bloomberg reported that investor interest exceeds the number of shares available for sale by more than four times. SpaceX has allocated roughly 30% of the offering to retail participants, a portion valued at about $22.5 billion. Market observers cited by Bloomberg estimate that retail demand could approach $70 billion once trading begins.
Many buyers seem driven by Musk’s track record of building successful companies. Tesla’s journey from a niche electric vehicle maker into a global giant has encouraged some to view SpaceX as a similar long-term bet. Others have already sought indirect exposure through investment funds holding private SpaceX shares, waiting for broader public access through the IPO.
Legal and Regulatory Concerns Loom
Not everyone is caught up in the excitement. Senator Elizabeth Warren urged the U.S. Securities and Exchange Commission to delay the offering, citing concerns about investor protections, corporate governance, and valuation, according to earlier reporting by crypto.news.
Additionally, SpaceX and xAI now face a legal challenge tied to Musk’s artificial intelligence business. A former xAI engineer, Devin Kim, filed a complaint in California’s Santa Clara County Superior Court. Kim claims he was fired after raising concerns about Grok’s safety systems and pushing for more testing. The lawsuit says the chatbot lacked adequate safeguards against misinformation and bias. Kim is seeking damages, fees, and forfeited equity compensation. SpaceX was included in the lawsuit after the recent merger between the two companies.
Despite these developments, Wall Street remains mostly positive. Brokerage firm Oppenheimer initiated coverage of SpaceX with an outperform rating and a $190 price target, above the expected IPO price of $135. SpaceX enters the public market after years of growth in commercial launches, astronaut transport, and Starlink satellite internet. While regulators and lawsuits attract attention, the strong demand from Musk supporters remains the dominant force shaping interest in the offering.
