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Why Buying SpaceX at $135 is a Massive Risk

SpaceX is planning an IPO at $135 a share, aiming to raise $75 billion and valuing the company at $1.75 trillion. The author highlights this as a potentially massive risk for investors due to an extremely high price-to-sales ratio (94), which is significantly higher than Tesla's. The author expresses concern about the valuation being driven by hype and Elon Musk's reputation rather than current financials, warning that retail investors could be left holding the bag when the market corrects.

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The author uses Tesla's already high valuation as a benchmark, noting that SpaceX's IPO valuation is significantly more expensive.

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