Kevin O'Leary Passed on SpaceX's IPO - Here's When He Says He Would Buy Instead

Kevin O'Leary passed on the opportunity to buy SpaceX (NASDAQ:SPCX) at its $135 IPO price, but the Shark Tank investor hasn't ruled out owning the stock.

O'Leary has now explained what kept him from buying and what would need to change before he considers putting his money into SpaceX. His approach offers a practical example for people looking to grow their wealth without getting swept up in IPO excitement.

Kevin O'Leary passed on his SpaceX IPO allocation

SpaceX went public in June at $135 per share, giving investors their first opportunity to directly own shares of Elon Musk's space and satellite company on the public market.

O'Leary had an opportunity to participate in the IPO but decided against it, with liquidity playing a major role in his decision. During an August 5 interview, he said there was a suggestion, rather than a formal requirement, that investors would be expected to hold onto their shares.

"Just the odor of that idea would put me off any deal because the key to putting on positions is liquidity," O'Leary said. During the same interview, he said he expected a "flushout" over the following 30 to 60 days, putting the range at roughly $100 to $110 before investors could, in his view, "start to build a position."

He reinforced that wait-and-see approach on X a day later, saying he would watch the stock as it settled over the next 30 to 60 days and "may start building a position."

SpaceX already fell into O'Leary's preferred range

Interestingly, SpaceX had already traded inside the range O'Leary later identified. Shares fell as low as $104.83 on August 3, putting them squarely within his $100 to $110 range and about 22% below the $135 IPO price.

O'Leary did not publicly identify that range until August 5, however, so investors shouldn't assume he had already set the same target when shares reached $104.83. His comments also pointed to a broader period of post-IPO volatility rather than an attempt to call the stock's exact bottom.

SpaceX subsequently rebounded above its IPO price, putting some distance between the stock and the level where O'Leary said he could begin buying.

O'Leary sees a bigger opportunity than SpaceX alone

Kevin O'Leary's interest isn't based entirely on SpaceX's latest results. In fact, when asked what stood out to him about the company's earnings report, he argued that investors may be looking at the wrong thing.

"You can't value SpaceX like a normal company based on one quarterly earnings report. The bigger opportunity is what Elon could eventually build by bringing SpaceX, Tesla, robotics, autonomous driving, and the rest of his ecosystem together," O'Leary wrote on X.

During his interview a day earlier, he made a similar argument. "This idea of Elon aggregating his empire and putting it all together, that does make sense," he said.

Tesla could be part of O'Leary's broader bet

O'Leary even floated Tesla as another way investors could potentially position themselves for such an outcome, suggesting someone could own the more established earnings business and wait to see whether it was eventually acquired by SpaceX.

The Shark Tank star was careful to acknowledge the uncertainty, adding, "Again, I'm speculating on that."

Closer connections between Musk's companies could create opportunities, but investors can't assume that SpaceX will merge with Tesla or that every part of Musk's business ecosystem will eventually operate as one company.

His enthusiasm for SpaceX also predates the IPO. Before the listing, O'Leary argued that investors shouldn't try to choose a single winner among SpaceX, OpenAI, and Anthropic. "Don't try and pick winners because you have no idea," he said, instead favoring diversified exposure to all three companies.

Chasing SpaceX after its rebound carries risks

SpaceX may be one of the world's most closely watched technology companies, but becoming publicly traded doesn't remove its risks.

Its valuation depends heavily on expectations for continued growth from businesses such as Starlink and future opportunities in space infrastructure. Space exploration is also extremely capital-intensive, and ambitious projects can face technical setbacks, regulatory issues, launch delays, and substantial costs.

Seeing a stock jump over 30% from its recent low can create fear of missing out, particularly when the company is as closely followed as SpaceX. However, the factors responsible for the rebound don't eliminate the risks that contributed to its earlier decline.

Even Wall Street remains divided over what the company is worth and whether investors should primarily view it as a space, communications, or AI investment.

Bottom line

SpaceX's rebound may mean O'Leary has to wait longer for the entry price he wants, or ultimately decide the opportunity has moved beyond him. Either outcome reflects the discipline of setting a price before enthusiasm takes over.

Even with must-have investing apps making it easier to follow stocks and compare opportunities, O'Leary's approach highlights the value of sticking to a price you're comfortable with rather than chasing a rally. Liking a company doesn't mean you have to like it at every price.

This article is for informational purposes only and should not be considered investment advice.

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