Elon Musk will soon sell shares of SpaceX to the public. With weeks left until what could be the biggest IPO to ever hit the market, investors are getting a bit worried. A Danish pension fund, Akademikerpension, decided on Friday to place SpaceX on its black list, barring all of its fund managers from purchasing SpaceX shares and deeming the company too risky for investment. The fund believes that SpaceX’s valuation is “pure fantasy” and its governance structure is “extremely poor,” according to a statement shared with Gizmodo. According to the latest reports, SpaceX is targeting a valuation of at least $1.8 trillion when it goes public in June, down from earlier reports that put the company’s goal above $2 trillion. The valuation is based on financial details SpaceX disclosed in its Form S-1 filing with the SEC, but the pension fund argues that the figure is wildly inflated.
The current market hype might drive the stock high in the short term, the fund says, but pricing “appears to be driven more by Elon Musk’s narratives than by economic realities,” and it is not hopeful about the company’s long-term prospects.
SpaceX’s financials are complicated thanks to its latest merger. SpaceX was founded decades ago as a space exploration company, hence the name. But earlier this year, Musk merged it with xAI, the AI company he founded in 2023 to compete with OpenAI, which owns both social media platform X and the controversy-loving chatbot Grok. While the space business and its crown jewel, Starlink, do fairly well, the AI business is burning through cash. According to the IPO filing (aka the Form S-1), xAI recorded a $2.5 billion operating loss in the first quarter of this year. Musk is hoping to up that AI spending even further as he literally aims for the stars with his dream of building a colony of space-based AI data centers.
