- SpaceX , Elon Musk's space exploration and artificial intelligence firm, is preparing for a highly anticipated Initial Public Offering (IPO) later in June, aiming for a $1.8 trillion (£1.34 trillion) valuation.
- Morningstar analysts have cautioned that SpaceX is likely to be "overvalued in almost any scenario," estimating its present valuation at $780 billion (£580 billion), significantly lower than the company's target.
- Concerns about overvaluation are attributed to SpaceX's reliance on future earnings from ventures not yet commercially viable, such as data centres in space, cargo transport to Mars, and the commercial value of X's AI chatbot, Grok.
- Morningstar also highlighted governance risks due to the concentration of decision-making authority in Elon Musk , who is expected to retain a majority holding and significant control over the company's direction post-IPO.
- SpaceX reported revenues of $4.7billion (£3.5bn) for the first three months of the year but also a net loss of $4.3 billion (£3.2bn), with the outcome of its IPO potentially influencing the future listing of OpenAI.
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