Morningstar analysts have assigned a valuation of $780 billion to Elon Musk’s SpaceX, a figure less than half of what the company is reportedly aiming for in its upcoming initial public offering. This assessment comes ahead of a planned roadshow scheduled for this week.The research firm expressed significant uncertainty about the prospects of SpaceX's artificial intelligence business, which encompasses xAI and the social media platform X. The research firm expressed significant uncertainty about the prospects of SpaceX's artificial intelligence business, which encompasses xAI and the social media platform X (Reuters)Analysts cited unclear economic models and intense competition from established players such as OpenAI and Anthropic. "We don't see Grok as one of the leading AI labs today," stated Morningstar equity analyst Nicolas Owens, referring to the chatbot developed by xAI.Owens further cautioned that the future success of SpaceX's AI segment hinges on unproven technologies, such as orbital data centers. SpaceX's new Starship V3 rocket is seen docked at the Starbase during the 12th test flight on May 21, 2026 as seen from South Padre Island in Texas (AFP/Getty)He also highlighted that Starlink, the company's satellite broadband division, faces technological obstacles, many of which may be beyond SpaceX's direct control. "We think the company has been significantly overvalued and investors will have opportunities to buy the stock at more attractive levels after the IPO," Owens added.This warning presents a rare contrarian perspective amidst widespread enthusiasm for the IPO. SpaceX intends to launch its roadshow on June 4, with shares slated to debut on the Nasdaq on June 12 (Reuters)Reuters has reported that SpaceX intends to launch its roadshow on June 4, with shares slated to debut on the Nasdaq on June 12. Get a free fractional share worth up to £100.Capital at risk.Terms and conditions apply.Go to websiteADVERTISEMENTGet a free fractional share worth up to £100.Capital at risk.Terms and conditions apply.Go to websiteADVERTISEMENTWhile Morningstar acknowledged the stock could see a near-term ascent due to a low float and the strong syndicate of major investment banks underwriting the IPO, including Goldman Sachs, Morgan Stanley, BofA Securities, Citigroup, and J.P. Morgan, their long-term outlook remains cautious."Long-term investors eager to participate in SpaceX's future endeavors and potential success will have opportunities to do so with a greater margin of safety than the initial offering is likely to provide," Owens concluded. SpaceX is reportedly targeting a $1.75 trillion in the IPO.The company was last valued at $1.53 trillion on secondary ​trading platform Forge Global.