Home Latest Articles Summary SpaceX, aka Space Exploration Technologies Corp. (private), is pursuing a $1.75 trillion IPO after absorbing Musk’s xAI at a $250 billion valuation, with no shareholder vote or independent oversight. The combined entity now prints a $4.94 billion GAAP loss on $18.7 billion revenue, driven by xAI’s $12.7 billion cash burn and collapsing Grok app metrics. At 90x trailing revenue and 70x forward sales, the IPO valuation demands flawless Starlink growth, immediate AI turnaround, and sustained market euphoria—each highly uncertain. Tesla, Inc. shareholders have already subsidized this structure with forced asset swaps and potential future merger risk, making SpaceX’s IPO structure and valuation deeply problematic. dima_zel/iStock via Getty Images Elon Musk’s xAI was burning $1 billion per month, losing ground to OpenAI and Anthropic, and watching Grok downloads collapse 60% from the peak. Then SpaceX absorbed it. No shareholder vote and no independent committee. Just a 40 Followers Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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