SpaceX is looking to IPO at $135 a share for 555.6 million shares, which would give the company $75 billion, significantly higher than the $18.67 billion it generated in 2025.
The company’s overall valuation is $1.75 trillion. Now, how could a company with only about $20 billion in revenue be worth over $1 trillion?
SpaceX is looking to IPO at $135 a share for 555.6 million shares, which would give the company $75 billion, significantly higher than the $18.67 billion it generated in 2025.
The company’s overall valuation is $1.75 trillion. Now, how could a company with only about $20 billion in revenue be worth over $1 trillion?
Elon Musk publicly claimed that SpaceX’s valuation stems from the exponential progress of Starlink, as well as the Starship rocket program.
SpaceX’s biggest money maker is its satellite internet service, Starlink, which generated $11.39 billion for the company. Although impressive, what type of progress does Elon expect Starlink to make to justify his SpaceX valuation?
The scariest part of this IPO is that indexes like the S&P 500, FTSE Russell, and the Nasdaq-100 created “fast-entry” rules to include SpaceX within their portfolios. This means index tracking funds will have to buy it, pushing the stock price higher in the near term.
However, after the inclusion, the company has to its valuation. Passive funds will hold it but they wont continue buying it unless it’s making money.
This is the point after the technicals where fundamentals take over. If the valuation declines, everyone holding index funds holds the loss.
People’s retirement accounts will be tied to SpaceX, which is great if the company proves its valuation, but what if it can’t?
