<body><p>STORY: SpaceX has officially priced its stock market listing at $135 per share.</p><p>The IPO has raised a record $75 billion for the rockets and AI firm, and sees it valued at $1.77 trillion.</p><p>That immediately makes it one of the world’s most valuable firms, and makes founder Elon Musk the world’s first trillionaire.</p><p>Shares in the company will now begin trading Friday (June 12) on the Nasdaq.</p><p>Whether $135 is the right price, however, that’s another matter.</p><p>Morningstar analyst Nicolas Owens is among those who think it looks high:</p><p>“We value it at $63 a share, which is the blended average of a range of scenarios that can be as high as $154 if you believe everything will go right and data centers in space are highly competitive. Or as low as a $40 a share if you really are just getting the rockets and Starlink, and the AI doesn't work out, so to speak.”</p><p>Owens says everything will have to go perfectly for SpaceX in future years to justify the sky-high valuation.</p><p>That includes its pledge to dominate industries that don’t even exist yet, such as data centers in space.</p><p>If the share price does fall, many small investors will feel the pain, with 30% of the offering reserved for retail buyers.</p><p>That’s far more than normal for a major IPO, and likely a move to capitalize on Musk’s cult-like following.</p><p>Morningstar’s Owens argues investors should wait to see how the company fares: </p><p>"Everyone will be monitoring these operational milestones around Starship reusability, the commercial model for data centers in space. And so, as you get more information on those, could be good, could be bad, but, we think it's probable that investors would have a better margin of safety at some future point.”</p><p>Other concerns include Musk’s unusual dominance over decision-making. </p><p>The IPO has been structured to give him 82% of voting power, leaving shareholders with little say.</p><p>SpaceX also remains unprofitable, having posted a loss of close to $5 billion last year.</p><p>While its Starlink satellite internet business is in the black, its AI unit is deep in the red amid huge costs to develop the new technology.</p><p>So far, however, none of that seems to have worried Musk’s eager investors.</p></body>
