The planned stock market debut of SpaceX sent European space and satellite stocks sharply higher on Thursday, as investors wagered that what could become the largest IPO in history may trigger a broader revaluation of the global space industry.
Shares in Eutelsat surged 20% to their highest level in more than a year, extending a powerful rally that has added roughly a third to the French satellite operator’s market value this week alone. German satellite manufacturer OHB SE climbed 15%, while Luxembourg-based satellite group SES S.A. gained nearly 4%. The rally indicates growing investor belief that a blockbuster public listing by Musk’s space empire could reshape how markets value satellite, launch, and space-infrastructure businesses globally.
If SpaceX achieves its reported target valuation of around $1.75 trillion, it would instantly become one of the world’s most valuable publicly traded companies and the first IPO above the $1 trillion threshold in U.S. market history. The listing would eclipse the record set by Saudi Aramco in 2019 and potentially redraw valuation benchmarks for the entire aerospace and satellite ecosystem.
For European players long overshadowed by Musk’s dominance in launch systems and low-Earth orbit satellites, the IPO is being interpreted less as a competitive threat and more as validation that the commercial space economy is entering a new expansion phase.
“I don’t think there will be capital flight. Generally speaking, big IPOs are good for the market. There’s interest, and there are opportunities,” OHB CEO Marco Fuchs told Reuters.
“SpaceX indicates substantial growth of the total addressable market from space-enabled solutions in the coming years. This is exactly in line with OHB’s assessments: We are at the beginning of a real space boom!” he added.
The enthusiasm marks a sharp reversal from investor sentiment earlier in 2025, when European satellite operators were under pressure amid fears that rapidly expanding low-Earth orbit constellations led by SpaceX’s Starlink network would flood the market with excess capacity and undermine traditional geostationary satellite businesses.
Analysts say that narrative is now shifting as demand for satellite connectivity, sovereign communications systems, defense applications, and AI-linked data infrastructure accelerates globally.
ING analyst Jan Frederik Slijkerman said sentiment toward European operators had improved after investors reassessed the long-term growth outlook for space-enabled services.
“More recently, the narrative has shifted,” he said.
The optimism has also been reinforced by rising geopolitical tensions and Europe’s growing push for strategic autonomy in communications, navigation, and defense infrastructure. European governments have become increasingly uncomfortable with relying heavily on American commercial systems such as Starlink for critical communications and military operations.
That shift has renewed investor interest in European satellite operators, including Eutelsat and SES S.A., both of which are attempting to reposition themselves as strategic digital infrastructure providers rather than traditional satellite broadcasters.
Analysts believe the scale of the upcoming SpaceX flotation could also pull large institutional investors deeper into the broader space sector, benefiting listed peers globally.
ODDO BHF analyst Stéphane Beyazian said the IPO is expected to command valuation multiples far above those currently assigned to European satellite firms.
“Some investors have appetite to have exposure to this segment and hope for a possible re-rating of European valuations,” Beyazian said.
That valuation gap has become increasingly striking. While SpaceX is targeting a valuation approaching $2 trillion, most European listed space companies still trade at comparatively modest earnings and revenue multiples, partly because of slower growth profiles and concerns about debt burdens tied to satellite infrastructure investments.
The IPO filing itself reinforced expectations that the commercial space economy could expand dramatically over the next decade. SpaceX said in its prospectus that it sees its total addressable market reaching $28.5 trillion, including an estimated $1.6 trillion opportunity tied to Starlink alone.
That projection underpins how Musk increasingly sees space not merely as an aerospace industry, but as the foundation for future communications, AI infrastructure, defense systems, and global internet connectivity.
Investors are also closely watching whether the IPO triggers a wave of capital inflows into private and public space ventures beyond satellite operators. Europe has long struggled to produce space companies capable of matching the scale and financing power of American rivals, particularly in reusable launch technology and satellite internet infrastructure.
The rally in European names suggests investors may now be reassessing whether the sector deserves valuations more comparable to high-growth technology companies rather than traditional industrial or telecom businesses. At the same time, the excitement surrounding the IPO also highlights the widening competitive gap between Europe and the United States in the commercial space race.
While SpaceX dominates global launch markets through its reusable Falcon rockets and rapidly expanding Starlink constellation, Europe’s space sector has faced launch delays, fragmented industrial policies, and mounting pressure to modernize its capabilities.
Still, analysts say the sheer scale of Musk’s listing may ultimately benefit the broader industry by drawing fresh investor attention to space as a long-term structural growth theme rather than a niche aerospace segment.
