Tesla CEO Elon Musk already has one highly valuable company worth $1.6 trillion in his electric vehicle business, and if all goes well for SpaceX when it goes public later this month, he could have another with a comparable market cap.
There’s an outside chance that the aerospace company might even hit a valuation of $2 trillion or more
Interest in SpaceX is high, and there’s sure to be plenty of activity around the stock when it begins trading. Investors could buy it as early as June 12. And while there are many reasons to be excited about the company, there are also important risks to consider with SpaceX’s upcoming IPO.
Here are three of the most important risks that could derail the stock when it goes public. Its high valuation Even if SpaceX stock doesn’t fetch a valuation of $2 trillion, it seems highly probable that, at the very least, its market cap will be around $1.5 trillion or more. That’s a hefty value for a business that generated just under $19 billion in revenue last year and which also incurred a loss of $4.9 billion.