Morningstar values SpaceX at $780B, half its IPO target

Morningstar values SpaceX at $780 billion, half its IPO target

reuters.com

June 2, 2026

2 min read

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58/100

Summary

Morningstar analysts value SpaceX at $780 billion, which is less than half of its IPO target. Uncertainties surround the company's artificial intelligence business, including xAI and the social media platform X, due to unclear economics and competition from OpenAI and Anthropic.

Key Takeaways

Morningstar values SpaceX at $780 billion, which is less than half of its targeted valuation of $1.75 trillion for its initial public offering (IPO).
The prospects for SpaceX's artificial intelligence business, including xAI, are uncertain due to unclear economics and competition from companies like OpenAI and Anthropic.
Morningstar analysts believe SpaceX has been significantly overvalued and suggest that investors may find better buying opportunities after the IPO.
SpaceX plans to launch its IPO roadshow on June 4, with the stock debut scheduled for June 12.

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Analysis ready

Community Sentiment

Negative

Concerns

The valuation of SpaceX at $780 billion seems detached from reality, especially considering its revenue and forecasts, indicating a potential market crash.
There are concerns that the hype surrounding Elon Musk and his companies is driving valuations beyond logical reasoning, which could lead to significant financial instability.
The perception that SpaceX's valuation is heavily reliant on Musk's presence raises doubts about its sustainability if he were to leave.
The market's irrational exuberance around companies like SpaceX suggests a disconnect between stock prices and actual financial performance, which is troubling for long-term investors.