Reuters: SpaceX’s Lofty Valuation Set to Put Elon Premium to Test
By: Niket Nishant, featuring Ed O’ Gorman, MBA, CFA®
SpaceX's (SPCX.O), opens new tab landmark listing this week is set to test the "Elon premium" that has made Tesla (TSLA.O), opens new tab one of the most highly valued U.S. companies and a must-have among retail investors.
The rocket company led by Elon Musk is targeting a valuation of $1.77 trillion in its record-setting IPO, which would make it the seventh-biggest publicly traded U.S. company by market value.
Musk's fans contend that his track record makes buying SpaceX shares at the IPO a no-brainer, but some investors and analysts say the expensive multiple it is expected to trade at makes the risk too high.
"Its fundamentals are really tough. If there weren't lofty expectations, there wouldn't be an IPO here," said Ed O'Gorman MBA, CFA®, CEO at River Wealth Advisors, which has invested in Tesla.
The belief that Musk can create outsized value has long supported lofty valuations across his business empire.
John Plassard, head of investment strategy at Swiss-based wealth manager Cité Gestion, a Tesla shareholder, said he was comfortable paying 20%-30% more for shares in a well-run Musk company than for a comparable rival.
However, the skepticism toward SpaceX underscores that even Musk's star power may not be enough to overcome concerns about its price tag, as some investors balk at paying prices that assume years of rapid growth and flawless execution.
Read the full article here.
Source: Nishant, Niket, Cherian, Johann. “SpaceX’s Lofty Valuation set to put Elon Premium to Test” SpaceX’s Lofty Valuation set to put Elon Premium to Test | Reuters. June 10, 2026 https://www.reuters.com/legal/legalindustry/spacexs-lofty-valuation-set-put-elon-premium-test-2026-06-09/
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