SPCX IPO: Jim Chanos Says SpaceX's $1.75 Trillion Valuation Is Built On 'Hopes And Dreams' — Oppenheimer Sees $10 Trillion Opportunity

• Chanos’s comments come a day before SpaceX is set to debut on the Nasdaq, with an aim of raising $75 billion.
• At its target valuation of $1.75 trillion and with shares offered at $135 apiece, Chanos said SpaceX is being valued at 90 times its sales, while another Elon Musk-led company, Tesla, has a multiple of 14.
• Oppenheimer analysts initiated coverage of SpaceX with an ‘Outperform’ rating and $195 price target, implying an upside potential of 44% relative to SpaceX’s offer price of $135.

Short-seller Jim Chanos believes that the $1.75 trillion valuation that SpaceX is aiming for is built on “hopes and dreams.”

According to a Reuters report, Chanos said at an iConnections conference in New York on Wednesday that he believes SpaceX is not worth $1.75 trillion based on reasonable assumptions over the next five years.

Chanos’s comments come a day before SpaceX is set to debut on the Nasdaq, with an aim of raising $75 billion. The company’s offering is said to have been oversubscribed already, and SpaceX is expected to price the deal on Thursday.

Chanos Highlights SPCX’s High Sales Multiple

Chanos also highlighted SpaceX’s high sales multiple. At its target valuation of $1.75 trillion and with shares offered at $135 apiece, Chanos said SpaceX is being valued at 90 times its sales, while another Elon Musk-led company, Tesla Inc. (TSLA), has a multiple of 14.

“We really can build whatever stories we want — colonies on Mars, factory tunnels, data centers in space — to justify the valuation. In bull markets, you put a premium on promises and in bear ​markets, you put a discount on reality,” Chanos added.

Chanos is not the only one who thinks SpaceX is overvalued. Morningstar analysts echoed similar sentiments in a note this week, valuing the SpaceX IPO at $63 per share, which is a discount of about 53% to the offer price.

Seabreeze Partners Management President Doug Kass said he values SpaceX at nearly a 50% discount to the offer price, at approximately $70 per share.

Oppenheimer Points To $10 Trillion Opportunity

According to TheFly, Oppenheimer analysts initiated their coverage of SpaceX with an ‘Outperform’ rating and $195 price target. This implies an upside potential of 44% relative to SpaceX’s offer price of $135.

While regulatory and execution risks remain, Oppenheimer believes the company's infrastructure is structurally advantaged and could address a $10 trillion market by 2035. The firm also expects strong early demand for the shares, driven by retail interest and rapid index inclusion.

Oppenheimer added that SpaceX aims to combine communications and AI through its space-based infrastructure, giving it unique scale and cost advantages. The firm views SpaceX as the only vertically integrated AI company with the necessary capital, data, models, hardware, and engineering talent.

Goldman, Morgan Stanley Release Bullish SPCX Forecasts

Meanwhile, Goldman Sachs and Morgan Stanley projected strong revenue growth for SpaceX, forecasting a sharp increase in the company's topline over the coming years.

Morgan Stanley projects SpaceX's revenue will soar from $18.7 billion in 2025 to $3.4 trillion by 2040, representing an increase of more than 180-fold.

Goldman Sachs forecasts that SpaceX will generate $474 billion in revenue by 2030, including $322 billion from AI-related businesses. 

The Procure Space ETF (UFO) is up 113% during this period, while the Tema Space Innovators ETF (NASA) is up 30%.

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