SpaceX Targets $1.75 Trillion IPO Despite Heavy Losses

• SpaceX plans $1.75 trillion IPO as losses mount
• Starlink profit offset by high price-to-sales ratio

On June 3, 2026, Reuters reported that SpaceX is seeking a record-setting $1.75 trillion IPO amid quarterly losses and analyst warnings. Driven by anticipation around Starlink and its recent merger with xAI, the company’s bid for the largest U.S. IPO is raising concern among financial experts.

SpaceX posted a $1.9 billion operating loss in the first quarter of 2026, stemming mostly from xAI’s $2.5 billion loss. Starlink produced $4.4 billion in operating income and stood as the group’s only profitable division, highlighting the company’s wide internal performance gap.

At the proposed $135 per share IPO price, SpaceX would launch at about 103 times trailing annual sales based on $19.3 billion in revenue over the past four quarters. Reuters pointed out this price-to-sales ratio is over 40% higher than the most expensive S&P 500 stock, and analysts note that tech companies at these levels have historically seen significant declines after debuting.

FactSet data shared with Yahoo Finance found the ten largest previous U.S. IPOs lagged the S&P 500 by an average of 127 percentage points in subsequent years, underscoring warnings about SpaceX’s long-term performance potential after the offering.

Skepticism persists regarding SpaceX’s stated $28.5 trillion total addressable market for satellite internet, AI, launches, and infrastructure. On June 4, The Verge reported experts are doubtful of these targets, citing reliance on U.S. government contracts and ambitious financial projections.

Morningstar valued SpaceX at $780 billion and suggested more favorable entry points may emerge after the IPO, according to Yahoo Finance on June 3. This estimate is less than half the targeted IPO valuation.

In summary, data from Reuters, Yahoo Finance, and The Verge shows that while SpaceX draws investor interest and strong brand recognition, experts highlight recent losses, high valuation multiples, and historic underperformance of mega-IPOs as key risks for investors.