SpaceX Said to Lower Target for IPO Valuation to $1.8 Trillion

Added: 2026-05-31

[00:00:00]Benedict, talk to us a little bit about why we're seeing somewhat of a revision lower for a potential valuation for SpaceX when it is expected to go public next month.

[00:00:10]Yeah. So the the listing is not far off. It's a couple of days off, so the the pricing will settle in the next couple of days. And I think what we're seeing right now is sort of, the market trying to figure out which way things will fall. It's a little lower, is the latest number we're hearing. As you said, 1,800,000,000,000, which, you know, if you think about trillions, that's almost a rounding error compared to the more than 2,000,000,000,000. So this is probably sort of the both sides, on on the investment banking side, but also on the on the buyer side, trying to sort of get a sense of the momentum. It might also be a case of sort of, you know, coming with low expectations and then beat them. So that might be part of that. So it's difficult to say at this point. Also, importantly, Musk does did come out a short while ago with a single word, response saying false. So we'll have to see who's right in the end. But, you know, this this is probably, as I said, sort of a positioning game going on right now. You don't wanna come, in with your guns blazing too soon. But having said that, it's been about a week now since we got sort of a a a good sense of the numbers, as part of the listing. And these are pretty, you know, mind boggling figures that we've we've we've read. You know, the the the the value is one of them, but then also the total addressable market is 28,000,000,000,000. These are sort of utopist numbers in some cases. So whether it's 1,800,000,000,000, whether it's 2,000,000,000,000, the difference isn't that big.

[00:01:39]Some might say, sort of, like, out of this world, maybe, you know, planetary expansion. Who knows? Before we let you go, the just on that number, if it had $18,700,000,000 in revenue in in 2025, up from $14,000,000,000, you know, in 2024, that would if it were valued at $1,800,000,000,000, that would be a price to sales multiple of, like, 96, which is pretty huge. I mean, you know, software companies are typically, what, 10 x. So even if this is a more conservative valuation for a market cap, this is still, you know, huge I guess people are you know, think this is a huge opportunity. Is that realistic?

[00:02:20]I think you're absolutely right. It's the the keyword is opportunity here, and I think people are buying into this not sort of where things stand right now, but rather what this business might be in five years and ten years and twenty years. And if there's one thing that Elon Musk has shown and has proven that he can build a market from very little or nothing, he's done so with Tesla. He might do so again now with with space exploration. Obviously, there's a lot of things that have to go right. Again, some of the things in the in the prospectus included items like we want to have a million people on Mars. So, you know, that is sort of future fantasies, future thinking. But if you can pull off some of those things, then maybe that valuation might not seem quite as lofty as it is now.