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Why the SpaceX IPO Went to the Moon
The Free Press • • business
Key Points:
- The author previously viewed the SpaceX IPO skeptically due to its extremely high $2 trillion valuation and projected $5 billion losses in 2025.
- The company’s prospectus claims a massive $28.5 trillion total addressable market, which requires ambitious goals like establishing a lunar economy and interplanetary industrialization.
- Analysts from Morningstar and short-seller Jim Chanos criticized the IPO as overvalued and based on unrealistic hopes rather than solid fundamentals.
- SpaceX’s valuation is notably higher than established tech giants like Nvidia, trading at 95 times sales compared to Nvidia’s 20 times, highlighting concerns about the stock’s pricing.
