Elon Musk’s SpaceX is set to launch the largest stock market float in history amid warnings that it could be overvalued.
The space exploration, satellite broadband and AI company will float on the US stock market on Friday at a valuation of $1.78tn, after offering at least $75bn of shares to investors through an initial public offering.
According to Reuters, the offer has been three or four times oversubscribed, with more than $250bn bid by investors keen to participate in the IPO.
The $75 billion share offering is nearly three times the previous record, Saudi Aramco’s $29.4 billion offering when it launched in 2019. If the float goes as planned, Musk could make history as the world’s first billionaire.
However, investment research group Morningstar calculates that SpaceX is worth just $63 per share – well below the expected IPO price of $135 – and warns that “there is a large disconnect between market expectations and underlying fundamentals”.
Morningstar chief equity strategist Michael Field suggested that investors should sit out the IPO and wait for “a more attractive entry point down the line.”
“We believe the business has real strengths, particularly at Starlink, but with so many unknown and untested technologies, particularly within the AI business, much of the value of the valuation, we think the valuation is highly speculative,” Field said.
SpaceX, which posted a net loss of $4.9bn in 2025, consists of three businesses: space exploration, including its Falcon and Starship rockets; Connectivity, such as its StarLink satellite constellation provides high-speed Internet access. and artificial intelligence, though it has an xAI division.
At $1.78tn, the IPO values SpaceX at about 92 times its previous sale, a hefty valuation that means investors are claiming Musk can achieve his ambitious goals for the company – such as orbital data centers in space, bases on the moon and cities on other planets, and “extending the light” of the stars.
SpaceX claims that Starlink has a total addressable market of $1.6tn. Morningstar estimates the realistic global opportunity for this segment at around $129 billion.
Earlier this week, US Senator Elizabeth Warren called on the Securities and Exchange Commission to delay SpaceX’s IPO, citing concerns about the company’s valuation and corporate governance.
“Given the unprecedented risks to investor protection and market integrity posed by the largest IPO in history, you should accordingly delay any final acceleration of the registration statement’s effectiveness,” Warren wrote to the market regulator on Tuesday.
Investors who do not participate in the IPO can still participate in SpaceX, once the company is included in the stock market index.
Earlier this week index provider MSCI confirmed it would apply existing rules for early inclusion of large IPOs in its global benchmark indexes, perhaps clearing the way for SpaceX’s inclusion. This will create demand for passively managed investment funds that track these indices.
The Nasdaq index has made changes that will make it easier for new listings like SpaceX to join its index.
However, S&P Dow Jones Indices has refused to relax its strict listing rules, blocking fast-track inclusion, meaning it could be months before SpaceX is added to the tech-heavy S&P 500 stock index.
