SpaceX, one of the most valued private companies globally, has exploded in popularity and activity in recent years. This has caused many to wonder how much SpaceX is worth and how/when can you buy its stock?
Finding SpaceX’s true value is a bit tricky as it is a private company. We have to gain insight from private sales of shares or funding amounts to learn the company’s total value. SpaceX is most likely the second most valuable private company in the world, right behind Bytedance. Yup, SpaceX is just below TikTok’s company in total valuation.
According to an email obtained by CNBC in May 2022 SpaceX is looking to raise about $1.7 billion in new funding. In February, SpaceX completed a 10-for-1 stock split, bring their stock price to $56 a share. Paired with the recent funding , the new stock price will be $70 per share. This will make SpaceX worth $127 billion as of May 2022. This valuation puts them in line with publically tradded aerospace and defense companies like Boeing and Lockheed Martin (owners of SpaceX’s biggest competitor United Launch Alliance). All a while SpaceX’s main focus has been launching of rockets and slowly growing its satellite internet service.
How far could SpaceX’s value rise?
The most significant players with SpaceX’s future valuation will be Starship and Starlink. These two programs could bring large amounts of wealth to the company, allowing it to be a leader in the telecommunications and transportation industries.
Starlink: the next big thing for SpaceX
SpaceX’s worldwide internet constellation, Starlink, left beta and now serves over 100,000 users worldwide. In the future, it is expected to grow in both commercial and enterprise users. The US Department of Defense has also shown some interest in seeing the technology developed, although there is no guarantee of a contract. Starlink has also shown great success in Ukraine. Where Russia’s aggression has caused large groups of the population to loose connection to the internet.
By 2025, Forbes predicts Starlink to grow and garner 2.3% of internet users, about 5.6 million, and have a value of $31.1 billion.
Starship: SpaceX’s possible secret treasure
SpaceX’s super heavy-lift fully reusable rocket, Starship, is still under development in South Texas. The goal for Starship is to fulfill SpaceX’s mission by colonizing Mars. This sort of vehicle has the abilty to completely disrupt the launch services market, out pricing competitors.
Starship however is still no where near operational. SpaceX is still wating on the FAA to approve its enviropmental review of Starbase before Starship’s orbital launch attempt. Then Starship will need formal approval from the FAA to become a operational launch vehicle. This could take some time to complete.
Starship and Starlink’s reliance on each other
In an email Space Explored reported in November 2021, Musk states how vital Starship development is to Starlink’s survival.
The consequences for SpaceX if we can not get enough reliable Raptors made is that we then can’t fly Starship, which means we then can’t fly Starlink Satellite V2 (Falcon has neither the volume nor the mass to orbit needed for satellite V2). Satellite V1, by itself, is financially weak, while V2 is strong.
Later in the email, Musk attempts to rally the troops stating, “we face a genuine risk of bankruptcy if we can’t achieve a Starship flight rate of at least once every two weeks next year.” Of course, doing what SpaceX does is extremely difficult and takes a lot of capital to keep it going. While this may seem far fetch to happen, Musk stated in reply to our reporting, “while still unlikely, is not impossible.”
How to buy SpaceX stock
SpaceX’s stock isn’t available publicly, as all shares are bought and sold privately between cooperations. However, SpaceX CEO Elon Musk has stated he would take the company public once it has secured Martian colonization. This is to ensure that the company’s goal will not be influenced by investors worried about increasing profits.
Musk’s disdain for taking SpaceX public was shown in a leaked company-wide email from 2013 where he said:
I am increasingly concerned about SpaceX going public before the Mars transport system is in place. Creating the technology needed to establish life on Mars is and always has been the fundamental goal of SpaceX. If being a public company diminishes that likelihood, then we should not do so until Mars is secure.Elon Musk in a 2013 internal SpaceX email
In response to the email, Musk said, “A lot has happened in 8 years.” Of course, what that could mean is anyone’s best guest.
That being said, Starlink has a larger chance of becoming publicly traded in the near future. Both Musk and the President of SpaceX, Gwynne Shotwell, have stated that Starlink could be spun off as a separate IPO in the future. However, Musk will not until revenue becomes more predictable and manufacturing costs are reduced.