Warren flagged concerns regarding SpaceX’s valuation and the underlying math used to arrive at those numbers.
- Warren warned that the major stock market indexes are being rigged in a way that would force millions of passive investors to invest in SpaceX with no choice in the matter.
- She added that passive investors who go the index fund route, since they offer lower cost options, will be exposed to the significant risks that SpaceX carries.
- SpaceX IPO is set to be priced on June 11, 2026, with the stock expected to begin trading the next day.
Senator Elizabeth Warren called on the U.S. Securities and Exchange Commission (SEC) to delay the upcoming SpaceX IPO, citing investor protection concerns.
Warren flagged concerns regarding SpaceX’s valuation and the underlying math used to arrive at those numbers.
“Publicly traded companies are meant to be accountable to their shareholders. The SpaceX IPO will flip this model on its head, with shareholders providing billions of dollars in new capital with no accountability measures for Mr. Musk or company leadership,” she said.
Warren Warns Stock Market Indexes Are Being Rigged
Warren also warned that the major stock market indexes are being rigged in a way that would force millions of passive investors to invest in SpaceX with no choice in the matter.
She added that passive investors who go the index fund route, since they offer lower cost options, will be exposed to the significant risks that SpaceX carries.
“Market analysts have raised concerns about the math underlying SpaceX’s target valuation,” Warren said.
Warren’s comments come after index provider MSCI confirmed this week that it will apply existing rules for the early inclusion of large IPOs in its Global Standard Indexes. However, S&P Dow Jones Indices announced last week that it will not change the requirements for entry into its major indexes.
SpaceX IPO is set to be priced on June 11, 2026, with the stock expected to begin trading the next day. According to a report, the offering has already been oversubscribed.
SPCX’s Valuation Target
SpaceX plans to raise $75 billion through its IPO, priced at $135 per share and valuing the company at roughly $1.75 trillion.
SpaceX’s offer price has drawn scrutiny from market analysts, some of whom have valued the IPO at about a 50% discount to the offer price.
Seabreeze Partners Management President Doug Kass on Tuesday said that SpaceX’s intrinsic value is well below the proposed offering price. He said Seabreeze Partners values SpaceX at around $70 per share based on a range of business scenarios, implying a discount of about 48% to the proposed offer price.
Morningstar analysts said they view the SpaceX IPO as overvalued, assigning it a fair value estimate of $63 per share, which is about 53% below the offer price.
Goldman Sachs, Morgan Stanley Release SPCX Forecasts
Meanwhile, Goldman Sachs and Morgan Stanley issued revenue projections for SpaceX, forecasting significant top-line growth in the years ahead.
Morgan Stanley expects SpaceX’s revenue to surge to $3.4 trillion by 2040, from $18.7 billion in 2025. Goldman Sachs expects SpaceX’s revenue to rise to $474 billion by 2030, while forecasting AI revenue at $322 billion.
Morgan Stanley stated in its note that SpaceX could post adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of $2.7 trillion by 2040. Goldman expects SpaceX’s adjusted EBITDA to soar over 52-fold to $352 billion by 2030, from $6.6 billion in 2025.
The Procure Space ETF (UFO) is up 102% during this period, while the Tema Space Innovators ETF (NASA) is up 30%.
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