Elon Musk’s space company SpaceX is expected to reach a valuation of $500 billion by 2030, billionaire investor Ron Baron said in an interview with CNBC on Friday. Baron, who reportedly holds over $1 billion worth of shares in the rocket company, predicts SpaceX’s valuation to rise to the range of $250 billion to $300 billion over the next three years.
Baron Funds, the investment firm led by Ron Baron, has been involved with SpaceX since 2017, and Baron remains a major advocate for the company, according to CNBC. SpaceX currently has a valuation of approximately $150 billion, making it one of the most valuable private companies in the world.
In a recent post on X, Musk stated that Starlink, SpaceX’s satellite internet unit, has achieved cash flow breakeven. Starlink, the world’s largest satellite company, operates a network of about 5,000 low-Earth orbit satellites. Two years ago, Musk stated that SpaceX planned to spin off and take Starlink public once its cash flow was positive.
“Excited to announce that@SpaceX @Starlink has achieved breakeven cash flow! Excellent work by a great team. Starlink is also now a majority of all active satellites and will have launched a majority of all satellites cumulatively from Earth by next year,” Musk tweeted.
According to other reports, SpaceX is expected to generate revenue of about $9 billion this year from its rocket launch and Starlink businesses, with projections indicating sales could climb to approximately $15 billion by 2024, Bloomberg News reported, citing sources familiar with the matter.
Baron is optimistic about SpaceX’s future growth, foreseeing an increased valuation as the company expands its operations and introduces new products and services. Notably, he highlighted SpaceX’s Starlink satellite internet venture, currently in beta testing and expected to launch commercially in the coming year. Baron sees Starlink as a potential major revenue driver for SpaceX.
Expressing confidence in SpaceX’s plans, Baron also mentioned the development of a reusable Starship spacecraft. This spacecraft has applications in commercial space travel, as well as transporting cargo and people to destinations like the Moon and Mars. According to Baron, Starship has the potential to revolutionize the space industry.
While Baron’s prediction of a $500 billion valuation for SpaceX by 2030 is ambitious, it’s not deemed impossible. SpaceX is already one of the most valuable private companies globally and is experiencing rapid growth. The success of Starlink and Starship launches, coupled with ongoing innovation, could contribute to achieving or surpassing the $500 billion valuation target by 2030.
Elon Musk founded SpaceX on March 14, 2002, with the primary objective of cutting down space transportation costs and making space travel more economically viable. Over the years, the company has achieved significant milestones, boasting successful developments such as the Falcon 9, Falcon Heavy, and Dragon spacecraft. Notably, SpaceX holds the distinction of being the first private company to launch, orbit, and recover a spacecraft.
Today, SpaceX stands as one of the most valuable private companies globally, spearheading advancements in commercial spaceflight. The company is actively engaged in various projects, including the ambitious Starship spacecraft. Designed for reusability, Starship aims to transport both people and cargo to destinations like the Moon and Mars, showcasing SpaceX’s commitment to pushing the boundaries of space exploration.
Only time will tell whether Baron’s prediction will come true, but his investment in SpaceX is a sign of confidence in the company’s future.