Elon Musk's SpaceX is set to launch the biggest stock market float in history, with a valuation of $1.78tn, amid warnings that it may be overvalued. The space exploration, satellite broadband and AI company will join the US stock market on Friday, offering at least $75bn of shares to investors through an initial public offering (IPO).
The offering is oversubscribed by three or four times, according to Reuters, with more than $250bn of bids from investors. The $75bn share offer is nearly three times the previous record, Saudi Aramco's $29.4bn offer in 2019. If the float goes as planned, Musk could become the world's first trillionaire.
However, investment research group Morningstar has calculated that SpaceX is worth only $63 a share – well below the anticipated IPO price of $135 – and warns there is “a major disconnect between market expectations and underlying fundamentals”. Michael Field, chief equity strategist at Morningstar, suggests investors should sit out the IPO and wait for “a more attractive entry point down the line”.
SpaceX, which made a net loss of $4.9bn in 2025, is made up of three businesses: space exploration, connectivity via Starlink, and artificial intelligence through its xAI division. At $1.78tn, the IPO values SpaceX at roughly 92 times its trailing sales, a hefty valuation that means investors are wagering Musk can achieve ambitious goals such as orbital datacentres and cities on other planets.
Earlier this week, US senator Elizabeth Warren called for the Securities and Exchange Commission to delay SpaceX's IPO, citing concerns about valuation and corporate governance. Meanwhile, index provider MSCI has confirmed it will apply existing rules for early inclusion of large IPOs, likely clearing the way for SpaceX to join its indexes, while S&P Dow Jones Indices has declined to relax its entry rules, meaning it could take months before SpaceX is added to the S&P 500.
