SpaceX Launches $75B IPO Roadshow Amid Overvaluation Warning
SpaceX launches its historic $75B IPO roadshow targeting a $1.75 trillion valuation, as Morningstar warns shares are 48% overpriced.
"The biggest IPO in history comes with a $780B valuation gap and a CEO who controls 85% of votes. Exciting? Yes. Risky? Absolutely."
SpaceX officially kicked off its IPO roadshow on June 4, 2026, targeting a record-breaking $75 billion raise at a $1.75 trillion valuation — nearly double Saudi Aramco's 2019 record of $35.4 billion. The company plans to sell 555.6 million shares, with pricing set for June 11 and Nasdaq trading beginning June 12. Goldman Sachs, Morgan Stanley, BofA, Citigroup, and J.P. Morgan are underwriting the deal, while CFO Bret Johnsen called retail investor participation 'bigger than any IPO in history.'
The offering is complicated by SpaceX's February 2026 all-stock merger with Elon Musk's xAI, valued at $1.25 trillion, despite xAI burning $2.5 billion in Q1 2026 alone and projecting $10 billion in losses for the full year. Starlink remains SpaceX's sole profitable division, generating $11.39 billion in 2025 revenue — 61% of total sales — with $4.42 billion in operating profit. At $1.75 trillion, SpaceX would trade at roughly 94x its 2025 revenue of $18.67 billion.
Morningstar analyst Nicolas Owens pegged fair value at $780 billion, calling SpaceX 'significantly overvalued' and advising investors to wait for post-IPO price corrections. Musk retains 85% voting control via a dual-class share structure, limiting public shareholder influence regardless of market reception.
For executives and investors, this IPO sets a new benchmark for capital markets ambition — but the 94x revenue multiple and xAI's $10B projected burn rate signal serious valuation risk. Business leaders evaluating exposure to SpaceX or Starlink partnerships should weigh Morningstar's 48% discount thesis carefully. The dual-class structure also means public shareholders have virtually no governance leverage over Musk's strategic decisions.
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