But even at SpaceX’s eye-popping valuation, some Wall Street analysts and investors argue the company is still undervalued.
Morgan Stanley analysts, for example, wrote in a report last month that SpaceX could be worth as much as $200 billion if its experimental satellite-internet project, Starlink, works as intended. Morgan Stanley said its low-end estimate for SpaceX’s value is about $50 billion.
And SpaceX’s other ventures — including launching astronauts and cargo for NASA, building massive prototypes for a would-be Mars rocket, and launching satellites for the US military — all give investors plenty of reason to clamor for a chance to own a piece of SpaceX, according to Chad Anderson, a SpaceX investor and the CEO of investment firm Space Angels.
Anderson said Space Angels participated in the latest funding round, growing its previous stake in the company, though he declined to say how much his firm has invested.
Anderson said that when SpaceX raises money there are typically more willing buyers than there are opportunities to invest, and that held true during this most recent funding round. That keeps existing investors happy because it indicates their stakes in SpaceX will keep going up in value.
Anderson added that SpaceX still isn’t turning a profit, but that’s mostly because it’s still spending large sums of money investing in new arms of its business, including the Starlink internet business and its Mars rocket prototypes, dubbed Starship. And that does leave some room for debate when it comes to the question of whether SpaceX’s valuation is too high.
“I think there would probably be an argument both ways,” he said. “I think there’s definitely a lot of SpaceX haters or naysayers.”
SpaceX does have a lot to prove: Its Starlink internet service, which is currently in beta testing, will need to prove to be affordable and reliable enough to attract a significant customer base. Its Starship Mars rocket will also need to prove it can launch satellites and, perhaps, convoys of people at prices that make its development a worthwhile investment.
However, SpaceX has a pattern of proving its critics wrong, first by building the first commercial rocket to reach orbit, then by developing reusable rocket technology, and most recently by safely launching two NASA astronauts into space.
That’s the case for why, Anderson says, it’s unwise to bet against SpaceX.