Former Tesla board member issues candid message on SpaceX stock

Venture capitalist Steve Westly says SpaceX is "three moonshots successful 1 company" and the mathematics lone works if astir of them wage off.

On June 12, SpaceX (SPCX) conscionable pulled disconnected the biggest archetypal nationalist offering successful banal marketplace history.

• The institution raised $75 billion, priced shares astatine $135 each, and debuted connected the Nasdaq with a bang, jumping 19% connected its archetypal time of trading, according to CNBC.

• By the closing bell, shares had settled astir $161. That enactment the company's marketplace headdress astatine astir $2.1 trillion.

• The popular continued aft hours, lifting the valuation person to $2.2 trillion.

But down the celebratory bell-ringing, a seasoned capitalist with heavy acquisition with Elon Musk has a pointed connection for anyone considering buying in.

SpaceX is not conscionable a rocket company

SpaceX isn't conscionable a rocket institution anymore. Musk folded his artificial quality startup xAI into SpaceX successful February 2026.

The combined entity consists of AI information centers, the Grok AI models, the X societal web (formerly Twitter), and an AI representation generator.

So SpaceX present spans 3 precise antithetic businesses: rockets and abstraction exploration, Starlink outer internet, and an AI division.

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The lone portion presently turning a nett is Starlink. According to the SEC filings, the outer net portion generated $4.4 cardinal successful operating nett past year.

The AI division, by contrast, mislaid $6.4 cardinal portion bringing successful conscionable $3.2 cardinal successful revenue, arsenic CNN reported.

The institution has mislaid $41.3 cardinal successful full since its founding successful 2002, according to its prospectus filed with the Securities and Exchange Commission.

Steve Westly's candid informing astir the $2 trillion SpaceX valuation

Westly, who served connected Tesla's committee and founded The Westly Group, told CNBC's "Squawk Box Europe" that figuring retired what SpaceX is worthy isn't easy.

The 3 businesses wrong it are, successful his words, "completely disparate."

His bottommost line? At slightest 2 of the 3 bets request to enactment out.

"SpaceX is 3 moonshots successful 1 company, but I deliberation they're going to request to marque astatine slightest 2 of these moonshots palmy to support that $2 trillion valuation," Westly told CNBC.

SpaceX's ain IPO prospectus acknowledged that immoderate of its plans trust connected technologies that bash not yet exist.

Related: 5 reasons wherefore the SpaceX IPO could beryllium an implicit dud

There's besides the governance issue. Musk holds super-voting Class B shares that springiness him astir 85% of the shareholder vote, CNN reported.