Morningstar: SpaceX Isn't Worth Anywhere Near $1.75T

Elon Musk's next market splash may be priced for orbit, but one major research firm says investors should stay grounded for now. CNBC reports Morningstar pegs SpaceX's value at about $780 billion—about 48% less than the $1.75 trillion valuation the company is aiming for in its looming Nasdaq debut, which could be the biggest IPO ever. While its note published Monday acknowledged that SpaceX's "share price will likely survive separation and may even ascend, at least for a time," investors who pause may find "a greater margin of safety" by buying post-IPO.

In its note, Morningstar called SpaceX "significantly overvalued" and warned that its AI unit xAI could erode value, describing its competitive edge as unclear. Starlink is the only profitable division, generating 69% of revenue, while the company overall posted a quarterly net loss of $4.28 billion and cautioned in its S-1 that it may never be profitable; a chunk of its value rests in the possibility of "novel and untested" future technologies, it said. Reuters reports the company is expected to set its IPO price at $135 per share.