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Fairy Tale Or Mega Bubble? Uday Kotak Calls SpaceX IPO A 'Test for Capitalism'

"Only time will tell whether we, the human race, have arrived in the fairy tale world we grew up in as children, or are in a mega bubble," Kotak said, while commenting on the SpaceX IPO.

Fairy Tale Or Mega Bubble? Uday Kotak Calls SpaceX IPO A 'Test for Capitalism'
Kotak said the valuation does not fit traditional financial models and represents a large bet on the future of space exploration.
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  • Uday Kotak called SpaceX's IPO a true test for capitalism and future potential
  • SpaceX raised $75 billion in a record-breaking Nasdaq IPO with strong retail interest
  • Shares opened at $150 and surged, pushing market cap to about $2.2 trillion
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Veteran Indian banker and billionaire Uday Kotak has described the blockbuster stock market debut of SpaceX as a “true test for capitalism,” raising questions over whether its massive valuation reflects genuine future potential or signals a financial bubble. 

“SpaceX IPO, listing, and beyond, is a true test for capitalism,” Kotak wrote on X on Saturday. “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 in the fairy tale world we grew up in as children, or are in a mega bubble. Either way, 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 said. 

Kotak's remarks come after SpaceX's record-breaking initial public offering (IPO) on Nasdaq, which has drawn unprecedented global investor attention. The listing reportedly raised $75 billion, with shares opening at $150 after being priced at $135, before surging further during early trading. Strong retail participation drove volumes past 500 million shares on the first day, making it one of the most heavily traded debuts in market history. 

ALSO READ: India's Corporate Bond Boom is Here, But So Is A New Set Of Risks — Is Your Money Safe?

The rapid rally pushed SpaceX's market capitalisation to around $2.2 trillion, placing it among the world's most valuable listed companies. The surge also reportedly elevated Elon Musk's net worth to over $1 trillion, making him the world's first trillionaire, according to global wealth trackers. 

Kotak said the valuation does not fit traditional financial models and represents a large bet on the future of space exploration and technology. He noted that such pricing reflects a shift in global capitalism, where innovation-led, high-risk ventures are driving extraordinary wealth creation. 

Kotak also praised Musk's journey as an immigrant entrepreneur and highlighted the role of the United States in enabling such innovation-driven growth. He said the development raises a broader question of whether global markets are entering a new era of technological optimism or witnessing the formation of a mega bubble driven by hype and investor enthusiasm.

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