SpaceX shares have plunged 50% from their post-IPO high, closing at $113.50 on Monday, and a further drop below $100 would value the company at around $1.3 trillion. The stock hit a peak above $225 shortly after its debut a month ago, but the sell-off has been swift. Even at a $1.3 trillion market cap, the valuation would still be extreme for a company that lost $4.3 billion in the first quarter on revenue of $4.7 billion. By comparison, Tesla is valued at $1.2 trillion with over $100 billion in trailing 12-month revenue. The article argues that SpaceX remains a highly risky buy given its unproven business model and the uncertainty surrounding ambitious projects like space-based data centers and Mars missions.
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