SpaceX IPO Faces Five Major Risks as Company Seeks $1.77 Trillion Valuation

According to columnist Aditya Raghunath, SpaceX's planned IPO faces five major risks despite market optimism. The company is seeking a $1.77 trillion valuation, but research firm Morningstar valued it at only $780 billion. SpaceX's 2025 revenue reached $18.7 billion, yet the company posted a $5 billion loss for the year, with Q1 2026 losses expanding to $4.3 billion.

Key concerns include AI division losses of $6.4 billion on $3.2 billion revenue last year, disclosure issues around the Anthropic partnership, and Elon Musk's control of 85% voting power via superclass shares. While Starlink generated $4.4 billion in operating profit, analysts warn that continued capital burn and historical IPO performance of high-valuation tech companies may limit upside.