By Heather Gillers

A Morningstar report earlier this week said SpaceX has been "significantly overvalued" and is worth $780 billion based on cash flows.

That compares to:

-- a valuation of around $1.75 trillion that people familiar with the matter told the Journal SpaceX is eyeing for its blockbuster initial public offering planned for next week.

-- a valuation of around $1.25 trillion earlier this year after SpaceX acquired xAI, Musk's AI company.

Morningstar noted that a "small initial float," investor appetite for AI infrastructure and the expected inclusion of the stock in the Nasdaq 100 index could lead SpaceX to "ascent to an orbit, at least for a time." It sees more downward pressure on the stock in the months after the IPO, "when successive tranches of stock held by private investors and employees are slated to become available for sale."

SpaceX is aiming to file updated paperwork this afternoon that will include its targeted IPO share-price range.

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(END) Dow Jones Newswires

June 03, 2026 16:27 ET (20:27 GMT)

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