SpaceX Is About to Be Worth More Than $1.7 Trillion. Here's Whether That Valuation Makes Sense.
Written by Emma Newbery for The Motley Fool -> SpaceX combines rockets, exploration, AI, and satellite internet connections. Investing in SpaceX, especially in the period following its IPO, is extremely risky. There's a lot of supposition behind SpaceX's sky-high valuation: It
SpaceX combines rockets, exploration, AI, and satellite internet connections.
Investing in SpaceX, especially in the period following its IPO, is extremely risky.
There's a lot of supposition behind SpaceX's sky-high valuation: It is hard to quantify the potential costs or revenue of building data centers in space.
The SpaceX (NASDAQ: SPCX) IPO is close to liftoff. With initial shares priced at $135, the offering looks set to raise a record-breaking $75 billion, valuing the company at around $1.77 trillion and making it the eighth-largest by market cap. That's a lot for a company that was not profitable in 2025 and is not profitable today. However, SpaceX is an extraordinary company that has repeatedly defied doubters, and bulls argue its ability to break new ground justifies that valuation.
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The greatest difficulty in valuing SpaceX is that a lot of the projections boil down to one statement: "It's space!" Or more accurately, "It's space and AI!" Both markets could have life-changing potential, but costs and revenues are hard to project. For example, one thing to know about SpaceX is that its IPO prospectus assumes a total addressable market (TAM) of $28.5 trillion. Because, well, it's space.
Plus, historical IPO growth expectations don't necessarily apply because companies are staying private for longer. There are a lot of comparisons with Tesla (NASDAQ: TSLA) , but the electric vehicle maker was founded in 2003 and went public seven years later, while SpaceX was founded in 2002 and is only going public now. Investors who buy SpaceX after the IPO will miss out on years of potential explosive early-stage growth.
Despite the name, SpaceX is about more than going to space. The prospectus calls it an "innovation engine" because it combines space, artificial intelligence (AI) , and communications, but looking at the way those divisions break down, the AI market is actually where it sees the most potential.
