SpaceX’s $1.75 trillion valuation sparks concerns: Is Elon Musk’s IPO priced too high? Should investors be cautious?

Elon Musk’s SpaceX has filed for an IPO that could become the biggest in history. The company aims to raise up to $75 billion from investors, a move that could further strengthen Musk’s influence in the tech and space industries.

After the IPO, Musk would be the CEO, CTO and Chairman of the Board, the filing revealed.

US media reports say SpaceX is hoping to raise $75 billion and win a valuation of as much as $1.75 trillion when it begins trading as early as next month.

Understandably, there is a massive retail interest in the IPO. SpaceX has made a significant contribution to reshaping the economics of orbital launch. It also folded in AI business xAI in a mostly stock-based deal in February. The company has also partnered with Tesla on a chip-making project called Terafab. The combined story – powerful satellite internet business paired with big AI ambitions – makes this a rare and attractive story for investors.

But there is a long list of reasons to slow down before clicking 'buy', a Motley Fool report says.

Want to invest in SpaceX IPO - Here's what you need to know

What are risks associated with it?

• SpaceX’s massive valuation is the biggest concern for the investors. Motley Fool says, ‘the reported $1.75 trillion, the company could be valued at nearly 100 times its revenue’. Even if revenue grows strongly in 2026, the valuation indicates that investors will be betting on the fact that ‘almost everything will be going right for the company -- for years.’
• Corporate governance is also a cause of worry. SpaceX is reportedly planning a share structure that gives insiders extra voting rights, allowing CEO Elon Musk to control about 80% of voting power while owning roughly 43% of the company. This structure means public investors would own shares but have very little say in company decisions.

• Failed launches are another major concern for investors. The next-generation rocket is a key part of SpaceX’s future launch and Starlink business plans. However, it completed only five flights in 2025, far short of the company’s target of 25 launches.

What filing reveals about the company

The filing of the S-1 prospectus — a document companies must submit to the SEC before going public — provides investors a first detailed look at SpaceX’s finances, risks and business plans, marking the first major public financial disclosure in the company’s 24-year history.

• The company generated $18.7 billion in revenue in 2025 and posted an operating loss of $2.6 billion as it invested in next-generation rocket development and artificial intelligence.
• SpaceX's Starlink satellite internet business is the clear financial engine of the company, generating $11.4 billion in revenue in 2025, up nearly 50% year-on-year.
• The AI segment, which includes xAI and the social media platform X (formerly Twitter), recorded $3.2 billion in revenue for the full year 2025 but posted an operating loss of $6.4 billion as the company raced to build out AI training data centres.

• Capital expenditure for the segment alone reached $12.7 billion in 2025 and $7.7 billion in just the first quarter of 2026 -- reflecting huge spending needed to compete with AI giants like Google, Meta and Amazon.
• SpaceX also revealed that it signed a deal to lease unused space at its COLOSSUS and COLOSSUS II data centres to AI startup Anthropic for $1.25 billion a month until May 2029.