SpaceX gets boost in valuation in recent offer
SpaceX has begun discussions with a party to sell shares of its company at $95 a piece, according to Bloomberg. This would put the company at a valuation of about $175 billion, similar to companies like Nike and Intel.
Now formally cemented as the most valuable launch provider, this valuation is an increase from the last time SpaceX sold shares over the summer with a company value of $150 billion.
The company’s launch cadence has exploded (thankfully just figuratively) over the years and especially in 2023 with the company just recently launching its 91st Falcon rocket of the year.
Most of those missions have been for SpaceX’s satellite internet constellation, Starlink. What was thought to be such a niche market that a direct to consumer model couldn’t work, is now an entity that achieved breakeven cash flow according to Musk.
Another exciting project that is finally coming alive this year has been Starship. While we didn’t get to see any test flights in 2022, in 2023 SpaceX was able to launch two fully integrated test flights of both the Starship and Super Heavy booster. There is still work to be done to get the vehicles through the entire test flight profile, but now you can no longer deny Starship’s future place among commercial launch vehicles.
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When Starlink IPO?
A point of discussion every time SpaceX’s stock price gets mentioned is when might the general public get a chance to buy shares?
Well the answer to that question is still, not any time soon. As Musk’s goal has been to keep the company private until its mission, building a Martian colony, is secured.
However, an IPO of a spinoff of the Starlink brand is much more likely in the near future. Both Musk and SpaceX’s President and COO Gwynne Shotwell have said that Starlink could go public when it turns a profit.
Outside of Musk’s breakeven cashflow comments, we don’t know any specifics about how much money the service is bringing in just yet. What we do know is that SpaceX is no longer taking a loss on its terminal production.
Originally the terminal cost SpaceX $3,000 to produce, while it was selling it to consumers for only $599. Earlier this year a SpaceX official stated that case was no more, thanks to scaling its production of the terminals.
So while we might not get to own any $SPX (or whatever the ticker will end up being). With both the cost of terminals down and profitability on the horizon, you could possibly see $STAR, $STLK, or something like that in your portfolio in the near (ish) future.
That is of course, if Musk hasn’t decided to completely change his mind on the IPO business.
