SpaceX's $1.77T Valuation Has Investors Raising Eyebrows
SpaceX lost $4.3B on $4.7B revenue in Q1, and some investors aren't buying the trillion-dollar IPO dream.
SpaceX wants a $1.77 trillion valuation ahead of its blockbuster IPO. Some investors think that number is fantasy.
The concern is straightforward math. Elon Musk's rocket company posted $4.7 billion in revenue during Q1 — but burned through $4.3 billion in losses. That's a staggering burn rate for a company seeking a valuation north of most nations' GDP.
Skeptics are also flagging questions around SpaceX's space data center ambitions, adding another layer of uncertainty to the already eye-watering price tag.
The spending spree isn't unusual for SpaceX, which has historically plowed cash into ambitious infrastructure. But an IPO changes the calculus. Public market investors tend to be less patient than Musk's loyal private backers.
Whether SpaceX can justify the valuation will be one of the biggest questions hanging over what could be the largest tech IPO ever.