The space sector surged Thursday as SpaceX’s record-breaking IPO stirred a powerful risk-on rotation, lifting shares of Rocket Lab by 9% and Tesla by 4.6% in a session where major U.S. indices also posted strong gains.
SpaceX IPO: The Center of Gravity
The long-awaited SpaceX public listing set an IPO price of $135 per share, raising approximately $75 billion and valuing the company near $1.77 trillion. With order books officially closed, the offering attracted massive attention—30% of the allocation went to retail investors, far above the typical share. The event became a magnet for speculative capital flowing into space-related equities, including Redwire, AST SpaceMobile, and Intuitive Machines.
Rocket Lab’s Surge and Neutron Catalyst
RKLB closed regular trading at $114.78, up 9.26%, and extended gains after hours to $119.24. Analysts pointed to no company-specific announcement; instead, the rally reflected macro momentum and sector-wide enthusiasm. CFO Adam Spice highlighted the competitive landscape shaped by SpaceX’s Starlink and Starship initiatives, asserting that Rocket Lab’s next-generation Neutron launch vehicle could secure a “very nice spot” in the medium-lift market. The company remains on track for a Neutron launch before year-end, a critical milestone for its transition from small-lift provider to a broader space infrastructure player. First-quarter revenue of $200.3 million (up 63.5% YoY) and a record GAAP gross margin of 38.2% reinforced the bull case, alongside a $2.2 billion backlog.
Tesla’s Rebound and Analyst Shifts
Tesla closed at $399.15, recovering from a near-10% slide over the prior week. Some traders had feared retail investors were selling TSLA to fund SpaceX purchases, but the math limited the direct impact: the retail portion of the SpaceX raise equated to roughly 2% of Tesla’s market cap, and broader market weakness—with the Nasdaq down ~6%—explained much of the decline given Tesla’s 1.80 beta. JPMorgan upgraded Tesla from underweight to neutral and nearly tripled its price target to $475. Evercore also moved to outperform, while Truist trimmed its target to $400. The consensus across 44 analysts remains Hold with an average target of $404.37.
