SpaceX says it will bring in $8 billion of revenue in 2023

SpaceX is having an outstanding year with its workhorse Falcon 9 rocket, boasting 49 launches currently on the books. The company is also making remarkable progress in Starship development, and it appears it will generate significant revenue by year-end.

According to The Information, SpaceX has informed investors that it anticipates bringing in $8 billion in revenue in 2023, doubling its earnings from 2022. This substantial increase in valuation positions the company well above its competitors, making it one of the most highly valued private companies in the US.

The recent sale of its shares on the secondary market at $81 each has bolstered investor interest, resulting in a valuation of $150 billion. This surge in investment is largely attributed to the rapid growth of the space industry in recent years. SpaceX aims to launch 100 Falcon 9 rockets this year, highlighting the soaring demand for heavy-lift launches to orbit, however, a considerable portion of these missions will be for Starlink satellites.

Starlink, SpaceX’s satellite internet service, holds promising potential for generating substantial revenue in the near future. Presently, the service boasts 1.5 million subscribers who pay at least $120 monthly for residential access, with higher fees for other product tiers. With over 4,000 satellites of various types currently in orbit, SpaceX has become the largest satellite operator globally.

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It is believed that Starlink is Elon Musk’s key to funding a Mars colony, as well as the development of the Starship rocket that will make such endeavors possible. However, this ambitious plan comes with significant costs, as SpaceX plans to invest $2 billion solely on Starship development in 2023, impacting their overall profits. Combining this with other expenses, The Information states that SpaceX will make approximately $3 billion in operating profits this year.

Starship, once a small-scale project, has grown into a major undertaking for SpaceX in South Texas, employing over 1,000 personnel in the Brownsville area. While it has brought positive economic changes to the region, some locals are concerned about potential environmental impacts stemming from Starship launches. They are taking legal action against the FAA for granting SpaceX a launch license without a full environmental review.

While this year showcases SpaceX’s dominance, the next few years will be equally crucial in demonstrating whether the industry can support such a high launch cadence. Moreover, once Starship becomes operational, it will be interesting to observe the market’s response, especially when Starlink transitions to the newer and larger rocket, leaving the Falcon 9 to only fly commercial missions.