Top analyst has harsh words for SpaceX debut: ‘We recommend that investors avoid this IPO’
David Trainer, CEO of New Constructs, has expressed strong skepticism regarding the upcoming SpaceX IPO, suggesting that investors should avoid it. He argues that the projected valuation of $1.75 trillion is unrealistic and that the majority of the IPO proceeds will be used to pay off debt rather than fund growth. Trainer also highlights significant governance issues, stating that Elon Musk will maintain overwhelming control over the company, limiting investor influence.
- ▪David Trainer recommends that investors avoid the SpaceX IPO due to its unrealistic valuation.
- ▪Trainer claims that 78% of the IPO proceeds are already allocated to pay off existing debt.
- ▪Elon Musk will retain significant control over SpaceX, limiting the influence of new shareholders.
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| Original publisher | Fortune |
| Canonical URL | https://fortune.com/2026/05/29/spacex-ipo-should-i-buy-bear-case-david-trainer/ |
| Publication time | Fri, 29 May 2026 07:00:00 +0000 |
| Retrieval time | 2026-05-29T07:44:58.967Z |
| Last seen | 2026-05-29T07:44:58.967Z |
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Opening excerpt (first ~120 words) tap to expand
David Trainer, CEO of research firm New Constructs, is taking a highly contrarian view of the looming SpaceX IPO that’s generating more excitement than any debut in stock market history. And that’s across the spectrum, from institutions anticipating their biggest payday ever from underwriting the shares, to the funds clamoring to get the way-underpriced allocations that should “pop” big the first day of trading, to the Elon Musk fans clamoring to pile in after the bell rings at the Nasdaq market site, probably in mid-June.
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Excerpt limited to ~120 words for fair-use compliance. The full article is at Fortune.
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