SpaceX Could Face ‘Musk Effect’ With Major Risks After IPO, Analyst Warns

BreakingBusinessSpaceX Could Face ‘Musk Effect’ With Major Risks After IPO, Analyst WarnsByTy Roush,Forbes Staff. Ty Roush is a breaking news reporter based in New York City.Follow AuthorMay 18, 2026, 12:42pm EDT--:-- / --:--This voice experience is generated by AI. Learn more.This voice experience is generated by AI. Learn more.ToplineDetails of SpaceX’s IPO are expected to be made public sometime this week as it accelerates plans for a stock debut that will likely make CEO Elon Musk the world’s first trillionaire, but one analyst warned that trading may be volatile as the stock faces “substantial” downside risks. The aerospace firm is expected to have the largest stock debut ever. Getty ImagesKey FactsSpaceX, which filed confidential initial public offering registration with the Securities and Exchange Commission in April, will likely make public its paperwork—offering insight into the firm’s operations and finances—this week as it plans for a June 12 debut on the Nasdaq, the Wall Street Journal reported, citing people familiar with the matter.Some have expressed concerns about SpaceX’s stock listing, including PitchBook analyst Franco Granda, who wrote in March that SpaceX may act like Tesla’s stock “on steroids,” suggesting trading volatility.Jay Ritter, a finance professor at the University of Florida and director of its market research program, the IPO Initiative, told Forbes the “Elon Musk effect” is likely to influence SpaceX’s stock, boosting demand for the IPO while adding long-term volatility tied to Musk, as stocks associated with him tend to swing far more significantly than the overall market.Tesla and SpaceX will be volatile stocks, Ritter said, noting the companies may have “very different outcomes”: Tesla faces headwinds from Chinese competitors, whereas investor optimism for SpaceX is driven by its ability to send satellites and cargo into space cheaper than its rivals.SpaceX has “substantial downside potential” if it goes public at a valuation of...