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Jun 11, 2026
Analyzed by GPT OSS 120B

SpaceX Targets Record $1.78tn IPO Amid Valuation Concerns

AI Summary
SpaceX plans to launch the biggest IPO ever, seeking a $1.78 trillion valuation through a $75 billion share offering that is already oversubscribed. Analysts warn the price may be far above fundamentals, while regulators and index providers weigh in on the market’s reaction.

SpaceX Announces Historic $1.78 Trillion IPO Float

Elon Musk’s SpaceX is set to become the largest public offering in history, targeting a valuation of $1.78tn as it lists on the U.S. stock market this Friday.

IPO Mechanics: $75bn Share Offering and Oversubscription

The company will sell at least $75bn of shares, a figure nearly three times the previous record set by Saudi Aramco’s $29.4bn float in 2019. Reuters reports the offering is oversubscribed by three‑to‑four times, with more than $250bn of bids from investors eager to participate.

Valuation Metrics: 92× Trailing Sales and $63 Fair‑Value Estimate

At the proposed price of $135 per share, the IPO values SpaceX at roughly 92 times its trailing sales. Morningstar’s analysis places the intrinsic value at only $63 per share, highlighting a “major disconnect” between market expectations and fundamentals. The company posted a net loss of $4.9bn in 2025.

SpaceX’s Starlink segment claims a total addressable market of $1.6tn, while Morningstar estimates a realistic global opportunity of about $129bn.

Market and Regulatory Reactions: Investor Demand, Index Inclusion, and Senate Scrutiny

High demand has prompted index providers to prepare for SpaceX’s potential inclusion. MSCI confirmed it will apply existing rules for early inclusion of large IPOs, and Nasdaq has adjusted its criteria to ease entry. In contrast, S&P Dow Jones has declined to relax its rules, meaning SpaceX may not join the S&P 500 for months.

U.S. Senator Elizabeth Warren has urged the SEC to delay the IPO, citing concerns over valuation and corporate governance.

Outlook: Potential Paths for SpaceX Post‑Listing

Analysts suggest investors may wait for a “more attractive entry point,” while others see the float as a catalyst for capital‑intensive projects such as orbital data centres, lunar bases, and interplanetary cities. The ultimate trajectory will depend on how the market reconciles the speculative premium with the company’s underlying financial performance.