Wall Street is bracing for a historic wave of mega-IPOs, and CNBC's Jim Cramer is sounding the alarm. He warns that the highly anticipated public debut of SpaceX could drain capital from the broader market unless structural precautions are taken to prevent an artificial price squeeze.

Fearing The $3 Trillion Gorilla

SpaceX confidentially filed its S-1 on April 1, targeting a valuation between $1.75 trillion and $2 trillion ahead of a potential June listing. However, Cramer fears overwhelming retail and institutional demand, combined with limited initial share offerings, could lead to disastrous market mechanics.

“I am very worried about the amount of supply stemming from SpaceX, OpenAI and Anthropic,” Cramer posted on X on Tuesday. “They really need to be spaced out and we will need no lock-ups so SpaceX won’t open at $3 trillion.”

On Mad Money, Cramer elaborated that “bulls are killed by excess stock supply.” If underwriters offer only a 5% sliver of the company to the public, the ensuing frenzy could skyrocket SpaceX’s market cap, forcing the S&P 500 into an unprecedented rebalancing that draws hundreds of billions of dollars away from existing equities.

The ‘Musk Swap’ Threatens Tesla

This capital drain will likely hit close to home for Elon Musk’s empire. Cramer predicts Tesla Inc. (NASDAQ:TSLA) will bear the brunt of the SpaceX hype as investors liquidate the electric vehicle maker to buy into Musk’s space and AI ventures.

“Tesla’s about to lose that scarcity value,” Cramer noted, arguing that SpaceX's growth story—anchored by its recurring Starlink broadband revenue—will eclipse Tesla’s slowing core auto business.

This aligns with recent bearish sentiment from Wall Street, including JPMorgan's recent “sell” rating on Tesla.

A Thanksgiving Feast For Investors

SpaceX isn’t the only heavyweight entering the arena. With OpenAI, valued at around $852 billion, and Anthropic at $380 billion, industry experts echo Cramer’s concerns about market absorption.

Venture capitalist Chamath Palihapitiya recently likened the 2026 IPO pipeline to a Thanksgiving dinner, warning that after investors gorge themselves on SpaceX, the market’s capital appetite for subsequent offerings may completely vanish.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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