SpaceX is poised to launch the largest initial public offering (IPO) in history, valued at $1.78 trillion. This ambitious float, which could make Elon Musk the world’s first trillionaire, has drawn significant investor interest, with bids exceeding $250 billion. However, analysts warn of a substantial disconnect between the company’s projected valuation and its actual worth, suggesting that the IPO price of $135 per share may be overly optimistic.
Investment research firm Morningstar estimates SpaceX’s true value at just $63 per share, highlighting concerns about the speculative nature of its valuation, particularly in its AI and space exploration segments. The company reported a net loss of $4.9 billion in 2025, raising questions about its financial health and long-term viability.
The IPO’s success could lead to SpaceX’s inclusion in major stock indices, creating further demand from passive investment funds. However, the S&P Dow Jones Indices has not relaxed its entry rules, potentially delaying SpaceX’s addition to the S&P 500. This could impact investor strategies, as those who miss the IPO may still gain exposure through index funds.
As the IPO approaches, regulatory scrutiny is increasing, with calls for the Securities and Exchange Commission to delay the float due to concerns over valuation and corporate governance. Investors are advised to consider the risks before participating in what could be a landmark event in the stock market.
Source: The Guardian
