Key facts
- SpaceX is preparing for an IPO with a target valuation of $1.75 trillion.
- Morningstar analyst Nicholas Owens estimates SpaceX's value at $780 billion.
- SpaceX reported a net loss of $4.95 billion last year.
- Starlink revenue increased 50% year-over-year.
- Only 3% of SpaceX's shares will be offered to public investors.
- SpaceX's IPO is scheduled for June 12.
SpaceX is preparing for an IPO with a target valuation of $1.75 trillion. Morningstar analyst Nicholas Owens has questioned this valuation, estimating the company's worth at approximately $780 billion, a 55% discount. Owens cited SpaceX's strengths in its launch business and Starlink satellite internet operation, but also noted potential challenges from its AI business and speculative projects. Despite the hype, SpaceX is not profitable, reporting a net loss of $4.95 billion last year, partly due to heavy AI-related expenditures. Starlink, its primary revenue source, saw a 50% year-over-year increase. The high valuation is largely attributed to future expectations and Elon Musk's reputation. Only 3% of SpaceX's shares will be available to the public. Owens suggests investors wait for the initial hype to subside and for existing shareholders to potentially offload stakes, as SpaceX plans a novel approach to lock-up periods allowing early investors to sell portions of their holdings relatively soon after the IPO.