Aswath Damodaran, a finance professor at New York University, has expressed skepticism about SpaceX's upcoming initial public offering (IPO), which aims for a price of $135 per share, translating to a valuation of $1.77 trillion. In his analysis, he estimates the company's value to be between $1.25 trillion and $1.35 trillion, suggesting that the IPO price is too high. Damodaran's assessment is based on a detailed review of SpaceX's business model, which includes three key segments: space launches, Starlink connectivity, and artificial intelligence (xAI). He notes that while the space and connectivity segments show strong unit economics, the AI business presents the greatest uncertainty due to its low margins and high competition. He cautions potential investors that buying into SpaceX at this valuation is essentially a bet on the future of AI and Elon Musk's ability to navigate challenges. Damodaran acknowledges that market dynamics can shift, referencing historical examples of companies like Facebook and Uber, which experienced significant valuation changes post-IPO. SpaceX is set to debut on the Nasdaq on June 12.