Republicans are praising Elon Musk for his $75 billion IPO (initial public offering) for his SpaceX company that posted a $4 billion net loss in 2025, despite receiving billions in corporate welfare and has $29 billion in debt.
Patrick Boyle, a former hedge fund manager, told Benzinga how overvalued SpaceX is and how it is a “money furnace”:
This is the most out there valuation of any company you can think of. It’s way beyond the valuation of Nvidia, and Nvidia is hugely profitable with massive margins. SpaceX just isn’t.
Ari Paul, the chief investment officer of BlockTower Capital, also sounded the alarm on Twitter/X:
Amazing. Pensions forced to buy Space X IPO en masse even if it’s unprofitable. Impressive coup by Musk. https://t.co/PdcTAkG2T0
— Ari Paul (@AriDavidPaul) May 31, 2026
Ian McMillan, a portfolio manager and market technician at Client First Tax and Wealth Advisors, added his concern:
Listen, I’m a big “the index is the index” guy, but they are openly looting the coffers.
— Ian McMillan, CMT (@the_chart_life) May 31, 2026
This is 100% fraud. https://t.co/atU07UvAa5
Economic commentator and journalist Ben Norton and others condemned Musk as well:
The world’s richest centi-billionaire oligarch used his power to change the rules, so he could dump his garbage company (which is cartoonishly overvalued, unprofitable, and incinerating cash) on retail investors, using trillions of dollars in retirement funds as exit liquidity,… https://t.co/P3HV35G7ar
— Ben Norton (@BenjaminNorton) May 31, 2026
theyre stealing your 401k to bet on Elon Musk’s penny stocks. This should be the biggest news story of the year. https://t.co/iWq6bTJQ4x
— Waqas (@worqas) May 31, 2026
Morningstar notes the absurd numbers that SpaceX is valued at:
In the first quarter of 2026, SpaceX posted a net loss of USD 4.3 billion on USD 4.7 billion in revenue, up from a net loss of USD 528 million on USD 4.07 billion in revenue in the year-ago quarter, according to the filing. It also disclosed a debt load through the first quarter of USD 29.1 billion.
The filing showed the extent to which SpaceX has increased capital expenditures. The company reported USD 10.1 billion of total capital expenditures in the first quarter, with USD 7.72 billion of that amount attributed to artificial intelligence.
SpaceX had USD 4.14 billion in expenditures in the first quarter of 2025—and USD 20.73 billion for all of last year.
Cash on its balance sheet has decreased from USD 24.75 billion at year-end 2025 to USD 15.85 billion at the end of the first quarter.
SpaceX’s AI segment lost USD 2.5 billion in the first quarter and USD 6.4 billion in 2025, the filing said.
(Sources: Morningstar, Yahoo Finance, Benzinga, Forbes, X)