SpaceX says it's worth $1.75tn as it targets largest stock market debut

[muriel_volestrangler]

2. The SpaceX valuation is that high because of speculation about the xAI part

That's the third business they're in (ex-Twitter is the fourth, but I think everyone rightly ignores that). The launch and internet businesses would be profitable, combined, but it's the AI that makes it a loss-making company. Musk and boosters want people to think its AI will be incredibly successful. But that is the problem - there isn't much credibility about that. They think they can put the computing power in orbit, and that this will give it the lead over competitors. But this is so speculative that you really can't put a figure on the cost of developing it, or whether it'll work. And the tech behind xAI is highly dubious, which is why they're having to buy another AI company as a backup plan.

Yes, many think the valuation should be far lower. But Musk is counting on fanbois buying the stock, and keeping its price up for long enough for trackers to be forced to buy - and the fanbois are also thinking "the trackers will have to buy, so if we keep the price up long enough with hype, like Gamestop, we'll get rich". I can't tell if they have enough money to do that.