Tesla (TSLA +1.04%) went public in 2010. One of the company’s missions (though by no means the only one) was to revolutionize the auto industry. The electric vehicle (EV) maker has had tremendous success in that department. It has helped make EVs more mainstream, pioneered a vertically integrated model that some competitors in the industry are now looking to replicate, and sells cars directly to customers, something legacy automakers generally still can’t legally do in the U.S.

Tesla and its shareholders have been rewarded: The company has posted amazing returns over the past 16 years. Now, Tesla’s CEO, Elon Musk, is on the path to revolutionizing space travel. The company through which it is doing so, Space Exploration Technologies (SPCX 3.44%), recently went public in the largest IPO ever. If SpaceX can deliver returns similar to Tesla’s, it is a great idea to buy the stock today. Let’s discuss some arguments in favor and against investing in SpaceX.

The bull case: Innovation can drive returns

SpaceX wants to make humans “multiplanetary.” Think: people constantly traveling to, perhaps even living, on other planets. That’s obviously not possible yet, not least because space travel is incredibly expensive. Building rockets is costly, and for the most part, they aren’t reusable. Enter SpaceX. Its highly vertically integrated approach allows it to manufacture its rockets in-house more cost-effectively, and the company’s famous rockets, Falcon 9 and Falcon Heavy, are partially reusable.

SpaceX goes beyond space travel, though. Through Starlink, a large network of Low Earth Orbit (LEO) satellites, it offers internet services, especially in rural and other underserved regions. Further, SpaceX’s xAI provides artificial intelligence (AI) services and owns Grok, a competitor to ChatGPT. SpaceX has found tremendous success so far. The company currently dominates the launch market, grabbing an impressive 51% of total orbital launches in 2025, according to some data.

The company’s Starlink also accounts for 54% of all operational satellites in orbit, giving it a solid lead in that market; it had 10.3 million active Starlink subscribers as of March 31. Further, SpaceX should continue innovating. The company is working on Starship, a next-gen, fully reusable rocket that could be yet another revolution in the field. SpaceX sees a huge addressable market ahead, the largest ever identified, according to the company. It estimates it at $28.5 trillion (that’s not a typo).

Provided the company can get close to capturing even a fraction of this opportunity, SpaceX could eventually make Tesla’s otherwise impressive returns look average.

Space Exploration Technologies

Today’s Change

(-3.44%) $-6.59

Current Price

$185.23

Key Data Points

Market Cap

$2.4T

Day’s Range

$172.11 – $190.00

52wk Range

$149.34 – $225.64

Volume

6.8M

Avg Vol

314.9M

The bear case: Competition, valuation, and the Musk factor

SpaceX looks promising, but several factors should give investors pause. First, while it is true that it is far ahead of the competition so far, that could change in the future. Several companies — public and private — are increasingly looking to eat SpaceX’s lunch. A first-mover advantage counts for something, but now that many companies are hot on its tail, SpaceX will have to continue innovating, or it may eventually lose its lead. Investors should keep that in mind. Another potential issue is valuation. SpaceX is worth $2.4 trillion. That’s almost as much as Amazon‘s (AMZN +3.01%) $2.6 trillion.

It’s hard to justify this valuation given SpaceX’s financial results. During the fiscal year 2025, SpaceX’s revenue increased by 33% year over year to $18.7 billion, while the company reported a net loss per share of $1.69 after posting a modest net income the year before. Meanwhile, Amazon’s first-quarter net sales of $181.5 billion grew 17% year over year and were almost 10 times SpaceX’s entire 2025 revenue.

Amazon is also consistently profitable and posted net earnings per share of $2.78 during the period, up 75% year over year. The market is forward-looking, and right now it is valuing SpaceX as though the company will find at least some success in its future endeavors, whether in space travel or elsewhere in its business. The flip side: Any perceived issue could send the stock price off a cliff. Lastly, investors should consider that Elon Musk is now the CEO of two major publicly traded corporations and remains a polarizing figure.

That could be good for the business: Investors might flock to SpaceX and bid up its share price because of Musk’s impressive track record of leading innovative companies. On the flip side, Musk’s tendency to overstate timelimes and business projections — and his active social media presence — can sometimes be a problem. So, what’s the verdict? SpaceX is likely to be a highly volatile stock no matter what, but I’d advise investors to wait for a major pullback before initiating a position. The company’s vision is aggressive, and it could deliver strong returns over the long run, but the stock is far too expensive at current levels.

Trump said his predecessors had let the pool turn an algae-stained green and that he’d line it with “American flag blue” so it better reflected the Washington Monument. But after the new pool was unveiled, its blue tinge quickly became a familiar green. Workers treated it with chemicals to kill the algae, but then the painted blue lining on the bottom began to peel.

On Friday night, Trump posted about the pool.

“We’ve had some real problems with Vandalism at the beautiful Reflecting Pool,” he posted on his social media site Friday night. “Just like three days ago, they destroyed the grass outside of the Pool, they’ve also done everything possible to hurt the inside surface that was just installed.”

He offered no details to substantiate his claim.

Agencies responsible for law enforcement and upkeep on the National Mall — the U.S. Park Police, National Park Service and Interior Department — did not respond to requests for comment. Trump on Saturday followed up by posting that Park Police “have arrested multiple individuals for vandalizing our Nations magnificent Reflecting Poll,” correcting his spelling to “Pool” later.

He went on: “Who would do such a thing? These are very serious crimes having to do with the destruction of National Monuments. Years in jail!”

One man arrested was David Hearn, 67, of Bethesda, Maryland, who owned a company that made composite used to build watercraft. He said he stopped by the pool during his 64-mile bike ride Friday to see what was going on.

Hearn, a former Olympic canoe racer, told The Associated Press that he reached into the pool because he wanted to examine the peeling new coating. He said he briefly touched a chunk that was still attached to the side of the pool, then let go shortly after a park worker told him to.

But, Hearn said, he was then detained by National Guard troops and Park Police for five hours before being released Friday night.

“I’m a curious citizen,” Hearn said in a telephone interview. “I reached down to see what it felt like. It was very rubbery.”

The Washington Post first reported Hearn’s arrest, and he said he has a date to appear in court next month and is looking for legal help.

Even if someone pulled ribbons of paint from the side of the pool, it would not explain the clouds of algae in green water and swaths of loose blue paint detached from the bottom.

Trump insisted something nefarious has been going on at the scene. “No different than the chemicals that were used on the National Mall, they used something similar in the Reflecting Pool to try to destroy and demean our beautiful work,” he posted Friday evening.

That was an apparent reference to the discovery of large numbers etched in discolored grass on the National Mall the week before: “86 47.” Authorities said the numbers could have been meant as a threat to Trump, the 47th president. The number 86 can be slang for “getting rid of.” They are investigating.

Trump’s claims came after days of negative attention to the state of the pool, which has drawn television cameras and curious onlookers.