Tae Kim
· Key Context by Tae Kim
· June 12, 2026 at 18:45
· ⏱ 1 min read
| Read on Substack ↗
Summary
The author congratulates SpaceX on its IPO but argues the $2 trillion+ valuation is far too high and premature, warning against the overhyping of SpaceX's neocloud opportunity. For markets, this signals that even a high-quality monopoly-like company can be overvalued, and investors should avoid chasing the IPO at these levels.
•SpaceX's $2 trillion+ valuation is described as 'way too high, too soon' by the author, who explicitly says he wouldn't touch it at that price.
•The author quotes Elon Musk warning investors not to get carried away: 'Let’s not get carried away. This is a short-term deal.'
•SpaceX is acknowledged as having strong businesses (rocket-launch monopoly, Starlink) but the valuation is criticized as excessive given the near-term outlook.