Last week, we looked at what SpaceX’s record-breaking IPO means for deep tech valuations. The company shattered IPO records, briefly surged beyond a $2 trillion valuation and helped make Elon Musk the world’s first trillionaire – a pretty big headline, there’s no doubt about it. But hidden beneath the headlines was another decision that could have consequences far beyond SpaceX itself.
That is, Musk chose Nasdaq. There were other choices, but he settled on Nasdaq.
For most investors, the distinction between Nasdaq and the New York Stock Exchange (NYSE) may seem like a minor detail – both are among the world’s largest stock exchanges and both host some of the planet’s biggest companies. But, for founders, investors and bankers, where a company lists can make a pretty big statement about how it wants to be perceived.
So, when the largest IPO in history – one that makes its founder the first trillionaire ever – chooses one over the other, it’s only natural that people are interrogating why.
The Biggest IPO In History Had A Choice To Make
According to Reuters, SpaceX raised a record $75 billion in its public offering, valuing the company at $1.77 trillion before trading even began. Shares then surged on debut, pushing the company above a $2 trillion valuation and cementing Musk’s place as the world’s first trillionaire.
Now, the listing could become a benchmark for future deep tech companies seeking public-market capital, but unlike many historic mega-listings before it, SpaceX chose Nasdaq rather than the NYSE.
That choice may reveal as much about the future of public markets as the valuation itself.
Nasdaq And The NYSE Aren’t the Same Thing. Here’s the Difference
At a technical level, both exchanges help companies raise capital and provide investors with a marketplace to trade shares.
But generally speaking, the NYSE has historically been associated with larger, more established corporations, while Nasdaq has developed a reputation as the home of technology and growth-focused companies. Nasdaq also operates as a fully electronic exchange, whereas the NYSE grew from its traditional trading-floor roots.
This difference is both practical and psychological at the same time. When investors think of Nasdaq, they often think of technology. Companies like Apple, Microsoft, Nvidia and countless high-growth software businesses helped build that identity over decades. The NYSE, on the other hand, is still generally accepted to be nearly synonymous with institutional prestige and corporate tradition.
Now, SpaceX could have comfortably fitted either description, so there wasn’t necessarily an obvious answer. So, the fact that it chose Nasdaq may therefore be more significant than it first appears.
Why Nasdaq May Have Made Sense For SpaceX
According to Reuters, Nasdaq moved quickly to include SpaceX in the Nasdaq 100 following its debut, while other major indices took a more cautious approach. Some analysts cited by Reuters argued that Nasdaq has increasingly positioned itself as the natural home for high-growth and AI-linked businesses.
And that’s pretty closely aligned with how SpaceX is increasingly viewed. While most people still associate the company with rockets, investors are really starting to buy into a broader vision that includes satellite infrastructure, communications networks, artificial intelligence and long-term technological expansion. Reuters noted that Musk himself has positioned SpaceX as a company spanning space, communications and AI.
So, if we look at it from that perspective, Nasdaq may just have been the more natural fit.
Could Other Companies Follow?
SpaceX’s successful debut could very much influence how future deep tech companies think about public markets. Companies like OpenAI and Anthropic are already being discussed as potential future IPO candidates.
But, another question emerges – that is, if the most high-profile IPO of the decade chose Nasdaq, will other founders follow the same path?
There is no evidence that a mass migration away from the NYSE is underway; that’s most likely not a reasonable expectation given the choice of one company (even though it is SpaceX). Both exchanges continue to compete aggressively for listings, but as always, perception is really important when it comes to markets.
Founders often look to successful precedents, and investors do too. So, if SpaceX becomes the defining IPO success story of this market cycle, some future founders may very well view Nasdaq not just as an exchange, but as the default destination for ambitious technology companies.
The irony, however, is that this wouldn’t actually be a revolutionary shift at all. Nasdaq has spent decades building its reputation as the home of technology businesses, so SpaceX is not and should not be viewed as the reason for its reputation, whether that changes or not.
What SpaceX may have done, however, is remind the market of that fact on the biggest stage possible.
