Should You Buy the SpaceX IPO?

SpaceX is going public on June 12. The company is expected to price at a $1.75 trillion valuation, making it the largest public offering in history.

I have studied this company for months. The technology is extraordinary. Rockets that land themselves. A satellite internet network connecting 10 million households across 164 countries.

Consider who’s behind it

Elon Musk helped take PayPal public in February 2002 at a valuation of roughly $800 million. eBay acquired the company for $1.5 billion just six months later.

He then led Tesla to its IPO in June 2010 at a split-adjusted price of $1.13 per share. Investors who held from that first day have since seen a return of nearly 380x their money. Those aren’t lucky outcomes.

Musk is a man who has delivered on promises that looked impossible. And he just might carry the first humans to Mars.

I’m still not buying a single SpaceX share. Let me tell you why.

The Math Is the Problem