Tesla Analyst Values SpaceX At $50B, With Starlink The Biggest Growth Driver
Achievements such as this have helped CEO Elon Musk attract investments for ambitious projects. SpaceX’s recent $125 million funding round brought the company to a $36 billion valuation, according to CNBC. Morgan Stanley cites a valuation closer to $50 billion.
The analysts suspect SpaceX’s value lies largely in Starlink, the company’s low-latency broadband internet system.
“We are modeling for $10 billion to $15 billion from 2020-2025 for Starlink, with the potential for more from ground terminals, 30,000 additional satellites and replacement of satellites, and expenditures associated with Starship/hypersonic point-to-point transport and Mars/deep space exploration,” analysts Armintas Sinkevicius, Adam Jonas, Simon Flannery and Matthew Sharpe wrote in a note.
In a best-case scenario, with the broadband internet taking off, SpaceX could achieve a $120 billion valuation. If the project fails entirely and SpaceX remains a satellite launcher, valuation could drop to $5 billion.
Morgan Stanley also sees potential in SpaceX’s Starship, “which can accelerate the deployment of the Starlink network, and unlock opportunities around hypersonic point-to-point transportation and deep space exploration,” the analysts wrote.
The company’s first Starship technology to pass the cryogenic tanking test failed to withstand a static fire test last week, but SpaceX has already begun construction on a new prototype. President and COO Gwynne Shotwell has forecasted successful Starship flights by 2026.
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