The upcoming SpaceX initial public offering (IPO) has the market in rapture, with investors looking into all sorts of ways to buy the hot stock. But there is a fair amount of risk in investing in the IPO, and a new one just emerged.

Doing things its own way

SpaceX is expected to be the largest IPO ever, with plans to raise $75 billion and debut with a valuation near $2 trillion. However, it's unprofitable, posting a $4.4 billion loss in 2025 and a $4.3 billion loss in the 2026 first quarter. On a price-to-sales basis, the stock is likely to be extremely expensive, starting out at around 100 times trailing-12-month sales. These are reasons the stock could tumble early.

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The new warning is that, while the company is on its IPO roadshow, instead of setting a price range and pricing closer to the IPO, it has chosen a share price of $135. That departs from the standard IPO protocol, and taking action without discussion is never in investors' interest.

The price could still change before the IPO, but it's another way the company is signaling that it wants to do things differently. It had also asked to be included in the S&P 500 (^GSPC 2.64%) earlier than standard rules would allow, but the governing body has rejected the request.

Investors interested in SpaceX might appreciate Elon Musk's approach, and the unconventional nature might not put them off. Musk will also have ultimate voting power, which could also be a risk, but his style is likely why people might want to buy SpaceX stock to begin with. That said, potential investors should proceed with caution.