SpaceX’s entrance into the stock market has been as exhilarating as a high-profile rocket launch. The company’s stock performance has drawn widespread attention. SpaceX initiated the largest initial public offering in history, propelling its founder, Elon Musk, to become the world’s first trillionaire. On a recent Thursday, the market valued SpaceX at roughly $2.4 trillion. It trailed only tech giants like Nvidia, Alphabet, and Apple in market capitalization, despite some volatility. SpaceX’s position among the top ten stocks is remarkable.

The question remains: Does SpaceX deserve its lofty valuation? Are the shares truly worth so much? These are questions worth considering. While Elon Musk’s achievements at Tesla and SpaceX are impressive, and his charismatic leadership attracts many admirers, SpaceX’s current valuation is hard to justify using conventional metrics.

SpaceX is currently operating at a loss, but the real concern lies elsewhere. Investing in SpaceX is essentially wagering on a sci-fi dream. The company’s prospectus makes its long-term goal clear: to establish a permanent human colony on Mars with at least a million inhabitants. This isn’t a passing fancy for Musk; he has committed to the idea of humans becoming an interplanetary species.

This monumental ambition could drain all potential profits SpaceX might generate. Even if the company succeeds in every other undertaking, the financial demands of colonizing Mars could jeopardize its fiscal stability.