SpaceX is worth less than half of its $1.75 trillion IPO target, Morningstar says

Key points

• A fleet of Tesla Cybertrucks sits outside the Starbase Build Site at SpaceX's South Texas testing facility on Feb.
• 6, 2026. SpaceX is expected to start trading on the Nasdaq in just over two weeks, but Morningstar analysts have warned that Elon Musk's tech behemoth is "significantly overvalued." The hotly-anticipated debut is expected to be the largest ever initial public offering, with SpaceX reportedly targeting a $75 billion fundraise and a valuation of $1.75 trillion.
• "We think the company has been significantly overvalued and investors will have opportunities to buy the stock at more attractive levels after the IPO," Morningstar analysts wrote in a note published Monday.
• The analysts see a wide range of possibilities for the potential profitability of SpaceX's xAI and find its "economic moat indeterminate." They view the unit as posing a "material threat of value destruction" to the company.
• As such, Morningstar's discounted cash flow valuation...