SpaceX’s $1.5 trillion IPO sparks fierce debate over valuation risks

Elon Musk’s SpaceX eyes a record-breaking public debut, but analysts question if innovation alone can sustain a $1.5 trillion bet. Is this ambition or overreach?

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2025 December 28 . 11:39 AM

1 min read

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SpaceX’s $1.5 trillion IPO sparks fierce debate over valuation risks

SpaceX, the rocket company led by Elon Musk, could soon go public with a staggering valuation of $1.5 trillion. The figure, reported by Bloomberg, has sparked debate among investors about whether the company’s growth justifies such a high price. Some analysts remain cautious, pointing to financial risks despite the firm’s groundbreaking technology.

Founded in June 2002 by Musk alongside Jim Cantrell, Andrew Stevenson Reed, and Jason Wright, SpaceX has reshaped the space industry. Its reusable rocket technology, particularly the Starship project, has been described by analyst Karl Thiel as a radical innovation that broke traditional industry rules.

The company generates most of its revenue—around 70%—from Starlink, its satellite-based internet service. The rest comes from launching payloads into space and advancing reusable rocket systems. Despite this, both Thiel and investor Rick Munarriz have raised concerns about the proposed valuation. Thiel noted that a $1.5 trillion price tag would mean the company trades at 100 times its sales, a ratio that gives Munarriz pause. A recent podcast segment also warned against investing in stocks purely due to fear of missing out (FOMO). The discussion highlighted how such decisions can lead to poor financial outcomes, especially with high-profile companies like SpaceX.

SpaceX’s potential IPO has drawn attention for its bold valuation and transformative technology. Yet, sceptics argue that the financials may not support the price, given its revenue streams and market position. The debate reflects broader concerns about balancing innovation with realistic investment expectations.