SpaceX is poised to launch the largest initial public offering in history on Friday, listing on the US stock market at a staggering $1.78tn valuation. The company, spanning space exploration, satellite broadband, and AI, is offering at least $75bn of shares to investors. The float could make Elon Musk the world's first trillionaire, according to analysts.
However, the valuation has drawn sharp skepticism. Some analysts point to a 'major disconnect' between the price and the underlying business fundamentals, warning that the company may be significantly overvalued. The IPO's size dwarfs all previous records, intensifying the debate over whether SpaceX can justify its massive market cap.
The public offering marks a seismic shift for the space industry, which has traditionally relied on government contracts and private funding. SpaceX's debut will become a bellwether for how investors value the commercial space sector, with implications for competitors like Blue Origin and Rocket Lab.
Critics argue that the valuation is driven more by Musk's celebrity and market hype than by SpaceX's financial performance. The company has not consistently posted profits, and its ambitious Starship program and Starlink broadband service remain capital-intensive ventures with uncertain returns.
The IPO is expected to be heavily oversubscribed, but the long-term trajectory depends on SpaceX's ability to deliver on its technical milestones and growth projections. Market observers will be watching closely for any signs of volatility in the first days of trading.