NEW YORK – May 20, 2026 – As SpaceX gears up for a potential public offering, expected around mid-June, a chorus of doubt is emerging from Wall Street. The aerospace firm is seeking a valuation that some find exceptionally high, with reports suggesting Elon Musk is aiming for a figure close to 100 times its current earnings. This aggressive pricing comes as SpaceX’s satellite internet division, Starlink, is increasingly becoming the primary engine for the company's revenue and profit.
The central point of contention appears to be the projected valuation of SpaceX, alongside its recent absorption of Musk's artificial intelligence venture, xAI, which also owns the social media platform X. This merger, finalized in February, has particularly raised eyebrows among financial observers. SpaceX proponents, however, argue that the company's significance extends beyond its rocketry operations, positioning it as a crucial "gatekeeper to space."
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Financial Undercurrents and Strategic Moves
The expected liftoff of SpaceX's Initial Public Offering (IPO) into the public market is met with a divided reception. While the company's technological advancements and ambitions are clear, financial analysts are scrutinizing the underlying business model and valuation.
Starlink's Dominance: The satellite internet service is already contributing the lion's share of SpaceX’s financial gains. This reliance on Starlink raises questions about diversification and long-term revenue streams beyond its initial launch services.
xAI Integration: The recent assimilation of xAI, a company primarily focused on artificial intelligence and the social network X, into SpaceX’s corporate structure has fueled speculation. The strategic rationale behind this significant corporate maneuver, particularly in the lead-up to an IPO, is a subject of much discussion.
Projections and Doubts
Backers of SpaceX are painting a picture of a company that is not merely a manufacturer of rockets, but a foundational entity for future space-based endeavors. This narrative seeks to justify the steep valuation by framing SpaceX as an indispensable gateway to the cosmos. However, this vision is not universally accepted, with some on Wall Street expressing significant reservations about the current financial metrics and future projections underpinning such a high market assessment. The potential claims associated with SpaceX's ventures have been speculated to reach up to USD 1.75 trillion, a figure that amplifies both the potential rewards and the perceived risks for investors.
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