Analysts Warn SpaceX May Be Overvalued Ahead Of Nasdaq Debut

SpaceX is preparing for what could become the largest initial public offering in history, but analysts at Morningstar have raised concerns about the company's proposed valuation, reported by CNBC.

The Elon Musk-led company is reportedly targeting a $75 billion fundraising and a valuation of $1.75 trillion. However, Morningstar estimates SpaceX is worth about $780 billion, roughly half its reported private market valuation of $1.5 trillion and well below its IPO target.

SpaceX is worth less than half of its $1.75 trillion IPO target, Morningstar says https://t.co/7gUEJpSc44

— CNBC (@CNBC) June 3, 2026

According to the analysts, uncertainty surrounding the profitability of SpaceX's AI business, xAI, presents a significant risk. The report said xAI remains loss-making and could weigh on the company's long-term value.

Financial disclosures show SpaceX posted a net loss of $4.28 billion in its latest quarter. Starlink generated most of the company's revenue and remains its only profitable division, while the space and AI businesses recorded losses.

Morningstar said retail investors may find better buying opportunities after the IPO, once valuation pressures ease and more financial performance data becomes available.

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tippinsightsTIPP Staff