As investors debate whether SpaceX's blockbuster IPO is priced for perfection, Nancy Tengler says they're asking the wrong question. The CEO and CIO of Laffer Tengler Investments argues that SpaceX isn't the kind of company investors buy for near-term earnings projections or traditional valuation metrics.

Instead, she says, it's a bet on Elon Musk's ability to repeatedly turn seemingly impossible visions into reality.

Musk's Track Record

"If you've read Walter Isaacson's biography on Elon, what you learn is that this is a guy who describes himself as 'programmed for war,'" said Tengler.

For Musk supporters, that reputation has been forged through a series of near-disasters. Tesla (TSLA) came dangerously close to bankruptcy. SpaceX burned through cash and suffered multiple failed launches before becoming the dominant force in commercial spaceflight. Yet both companies survived and ultimately thrived.

"He frequently teeters on the edge of disaster and then pulls back just in time," Tengler said.

Space Data Center Vision

That history helps explain why some investors are willing to look beyond SpaceX's valuation and focus instead on what the company could become. Tengler points to Musk's long-term ambitions, including fully reusable Starship rockets and even the possibility of building data centers in space.

"If he's right and he can build data centers in space, imagine the implications—the energy savings, efficiencies, and cost reductions," she said. The idea may sound ambitious, but Tengler believes Musk has earned the benefit of the doubt "because he's delivered so many times before."

The bull case also extends beyond rockets. Investors increasingly view SpaceX as a platform company with exposure to satellite communications, launch services, AI infrastructure and global connectivity through Starlink.

For Tengler, that makes SpaceX less comparable to a traditional IPO and more comparable to transformative businesses that reshaped industries.

"This is a narrative stock. You're buying it for the vision and the excitement," she said.

Amazon Comparison

That's also why she draws a parallel to Amazon (AMZN), which spent years prioritizing growth and long-term opportunities over near-term profits before delivering massive returns for patient investors.

As SpaceX begins life as a public company, Tengler believes investors will ultimately decide whether they are buying a stock—or buying into Musk's next vision.