SpaceX's $75B IPO at $1.75T Valuation Draws Chanos Skepticism and Oppenheimer Optimism
SPCX•SpaceX is set to raise $75B in its IPO at a $1.75T valuation that Jim Chanos argues is unsupported by fundamentals, pointing out a 90x sales multiple versus Tesla's 14x. Oppenheimer initiated Outperform with a 44% upside view while retail investors placed over $70B in orders, leaving most demand unmet.
1. Valuation Concerns by Chanos
Short seller Jim Chanos challenged the $1.75T IPO valuation, highlighting that SpaceX trades at 90 times sales compared with Tesla's 14 times multiple. He cautioned that lofty narratives around Mars colonies and space data centers may be inflating expectations beyond what fundamentals support over a five-year horizon.
2. Oppenheimer's Upside Projection
Oppenheimer initiated coverage with an Outperform rating and implies a 44% upside relative to the $75B offering, citing SpaceX's infrastructure edge, potential for rapid index inclusion and access to a projected $10T market by 2035. Analysts believe strong early retail demand will bolster post-listing performance.
3. Surge in Retail Demand
Retail investors submitted over $70B in orders for the 555.6 million-share IPO, despite a 20% allocation for individuals and less than 10% earmarked for international buyers. The oversubscription underscores intense interest, particularly with Japan's allocation raised to $2.5B, leaving most retail demand unmet.
