ASTS, RKLB, SPCE, RDW Stocks Extend Selloff Overnight -- Analyst Backs 'Betting Against Space' Trade As Jefferies Courts SpaceX Bears

• SpaceX plans to raise $75 billion at $135 per share, valuing the company at $1.77 trillion, or more than $1.8 trillion on a fully diluted basis.

• Tesla influencer AleXandra Merz said that the IPO is only one step in SpaceX's funding journey, citing estimates of $235 billion in capital needs through 2030.

• Satellite communications analyst Tim Farrar revived the view that 'betting against space' has often been the more rational trade.

Space stocks extended their selloff overnight heading into Wednesday as investors weighed growing bearish interest around SpaceX's blockbuster IPO and mounting questions over its $1.8 trillion valuation.

The weakness followed a brutal Wednesday session that saw shares of AST SpaceMobile (ASTS), Rocket Lab (RKLB), Virgin Galactic (SPCE) and Redwire (RDW), among other space stocks, all plunge up to 15%. In overnight trading, ASTS and RKLB each fell about 2%, RDW declined 3%, and SPCE sank 6%.

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How Big Can SpaceX's IPO Get?

According to SpaceX's filing with the U.S. Securities and Exchange Commission (SEC) late Wednesday, the company plans to sell 555.6 million shares at $135 per share, raising $75 billion and valuing the company at $1.77 trillion. On a fully diluted basis, the valuation exceeds $1.8 trillion. The company is expected to begin formally marketing the deal on Thursday ahead of a June 11 share sale and a trading debut the next day.

The scale of the offering could grow further if investor demand proves strong. Tesla influencer Sawyer Merritt noted on X that full exercise of the IPO's overallotment option could increase the value of shares sold by $11.25 billion. "If demand for SpaceX stock is strong enough with this IPO, the company says it could raise upwards of $85.7 billion," Merritt said.

The initial IPO filing had ignited a brief rally among space stocks after SpaceX called the sector's opportunity as the "largest actionable total addressable market in human history," estimating a $28.5 trillion market spanning launch services, Starlink connectivity, direct-to-cell communications and AI infrastructure.

Why SpaceX May Need More Capital

While much of the market has focused on SpaceX's valuation, Tesla influencer AleXandra Merz, who posts under the handle TeslaBoomerMama on X, said that the $75 billion to $83 billion raise would provide financial flexibility, but added that SpaceX's plans for Starlink expansion, Starship development and AI infrastructure point to funding needs that extend far beyond a single capital raise.