SpaceX set to go public next week: should you invest in the IPO?

SpaceX is just days away from making stock market history.

Elon Musk's rocket, satellite, and artificial intelligence company is expected to begin trading on Nasdaq on June 12 after pricing its initial public offering the day before.

With a targeted fundraise of $75 billion and a valuation approaching $1.8 trillion, the offering is set to become the largest IPO ever.

The excitement surrounding the deal has revived a familiar question among investors: Is SpaceX a good investment?

The answer depends largely on how investors view the company's growth prospects, valuation, and Musk's ability to deliver on some of the most ambitious plans in the technology industry.

SpaceX IPO price and valuation

SpaceX has fixed its SpaceX IPO price at $135 per share and plans to sell 555.6 million shares.

At that price, the company would be valued at approximately $1.8 trillion.

That would give SpaceX a cap larger than Tesla's current valuation and immediately place it among the ten most valuable publicly traded companies in the United States.

The company has taken an unusual approach by announcing a fixed price ahead of its roadshow rather than marketing a price range.

The move reflects confidence in investor demand as bankers begin gathering orders ahead of final pricing.

Institutional investors will spend the coming days evaluating whether the proposed SpaceX valuation is justified by the company's future growth prospects.

The bull case: AI could transform the business

The biggest argument supporting the current SpaceX valuation is not rockets or satellites. It is artificial intelligence.

According to forecasts shared with investors and reported by the Financial Times, Goldman Sachs expects SpaceX's AI division to generate $322 billion in annual revenue by 2030, up from just $3.2 billion in 2025.

The bank also projects that total company revenue could reach $474 billion by the end of the decade.

Those forecasts help explain why some investors are willing to support a SpaceX market cap that appears disconnected from current financial results.

The company currently generates most of its revenue from Starlink subscriptions and launch services.

However, investors are increasingly being asked to value SpaceX based on what its AI business could become rather than what it is today.

Bloomberg reported that many investors attending a recent JPMorgan event appeared enthusiastic about Musk's long-term vision despite questions around valuation and execution.

Participants described SpaceX as a generational company and expressed confidence in Musk's ability to create entirely new industries.

That optimism is also evident among major investors.

ARK Invest's Brett Winton recently described SpaceX as "the most important company in the world in terms of what the future is going to look like," while billionaire investor Philippe Laffont has suggested SpaceX could become part of the next generation of market-leading technology stocks.

The bear case: is SpaceX IPO overvalued?

The biggest concern for prospective investors is straightforward: Is SpaceX IPO overvalued?

At the targeted valuation of roughly $1.8 trillion, SpaceX would trade at approximately 94 times its 2025 revenue of $18.7 billion.

For comparison, the broader S&P 500 trades at a fraction of that multiple.

Even Tesla, which commands one of the highest valuations among major public companies, trades at significantly lower revenue multiples.

Critics argue that investors are being asked to pay today for profits and businesses that may not fully materialise for years.

Morningstar recently estimated SpaceX's fair value at around $780 billion, less than half of the company's IPO target.

The research firm's analysts argued that the market may be assigning excessive value to future AI opportunities while underestimating competitive risks from companies such as OpenAI and Anthropic.

The valuation gap has become central to the debate over whether SpaceX's IPO is overvalued, is the wrong question, or the most important one.

Adding to concerns is the fact that SpaceX remains unprofitable.

The company reported a loss of $4.9 billion in 2025 as it continued investing heavily in artificial intelligence infrastructure.

Retail investors are getting a rare opportunity

Unlike many blockbuster IPOs, SpaceX is making a significant effort to attract retail investors.

The company launched a dedicated IPO website directing prospective buyers to brokerages including Robinhood, SoFi, Fidelity, Schwab, and E*Trade.

According to the Financial Times, those platforms will feed daily demand information back to the underwriting banks as the offering progresses.

The approach could broaden participation in what has traditionally been an institutional investor-driven process.

It also means that ordinary investors will have an opportunity to buy shares closer to the IPO price than is typical in many high-profile offerings.

Is SpaceX a good investment?

Whether SpaceX is a good investment ultimately depends on an investor's time horizon and risk tolerance.

The bullish case centres on Starlink's continued growth, SpaceX's leadership in commercial spaceflight, and the possibility that its AI operations become one of the largest technology businesses in the world.

The bearish case focuses on valuation. A SpaceX market cap approaching $1.8 trillion leaves little room for disappointment if revenue growth slows or AI ambitions fail to meet expectations.

For investors considering the IPO, the next major catalyst will be June 11, when final pricing is expected.

Demand during the roadshow could offer the clearest indication yet of whether Wall Street believes the proposed SpaceX valuation is justified—or whether concerns that the SpaceX IPO is overvalued begin to gain traction once the shares start trading.

Investors can learn more through our comprehensive guide on how to invest in SpaceX before its IPO.