3 Reasons to Avoid SpaceX Stock When It IPOs
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SpaceX is expected to file for an initial public offering (IPO) in June with a valuation of over $2 trillion, but investors are cautioned about the risks associated with the company's pivot to generative artificial intelligence and slowing growth in its space business. The company's significant losses and exposure to political risk due to Elon Musk's activism are also concerns.
SpaceX is set to file for an initial public offering (IPO) in June, with an expected valuation of over $2 trillion. The company is shifting towards generative artificial intelligence, which has resulted in significant losses. In 2025, SpaceX lost nearly $5 billion, largely due to the $250 billion acquisition of Elon Musk's AI company, xAI. The company's revenue growth is also slowing, with an 18% year-over-year increase in 2025, down from 51% and 89% in 2024 and 2023, respectively. Investors are also concerned about the political risk associated with Elon Musk's activism, which has caused brand damage to his other company, Tesla. SpaceX's reliance on enterprise and government clients may shield it from some of this risk, but investors should be cautious about the uncertainties surrounding the company's pivot to AI.
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