Hey everybody, welcome back to the Elon Musk Podcast.
This is a show where we discuss the critical crossroads that
shape SpaceX, Tesla X, The Boring Company, and Neuralink,
and I'm your host, Will Walden. One of the most important
questions about SpaceX is will it ever go public?
Will there be an IPO for the company?
Can you buy shares for the company?
Can you buy stock in the company?
While late last year, SpaceX was reportedly in discussions to
sell 500 million to 750 million shares of its stocks,
potentially valuing the company at over $175 billion.
And this evaluation exceeds the record set by Alibaba's IPO in
2014. And it's a rise from Spacex's
$150 billion valuation in July of 2023.
Now, Spacex's new valuation would position it above major
companies like Disney and Comcast in terms of market cap.
However, the details of Spacex's tender offer could still change
at any time in the company is projected to generate $9 billion
in revenue over the whole year of 2023 and is aiming for
approximately 15 billion in 2024.
SpaceX has achieved a very dominant role in the space
transportation market, accounting for over 64% of
commercial rocket launches in the first half of this year.
Elon Musk has attracted top talent to SpaceX, including
former NASA engineers and Apple product designers.
And the company satellite business, Starlink, which aims
to provide Internet access to remote areas, is seen as revenue
increase from $222 million in 2021 to almost $2 billion in
2022 and 2023. Now, despite speculation about a
potential Starlink IPO as early as 2024, late 2024, both Elon
Musk and investor Ron Barron have dismissed these rumors.
Barron, who is a significant investor in SpaceX, anticipates
A Starlink IPO around 2027, with Spacex's valuation potentially
reaching 250 to $300 billion at that point.
The Musk has previously indicated that he doesn't
foresee Starlink going public until at least 2025, and the
company is currently focusing on its goal of launching this mega
constellation of 42,000 satellites by next year using
the Starship rocket. Now Musk has mentioned on X,
formerly Twitter, that Starlink's IPO would depend on
the company becoming financially viable and being able to predict
cash flow effectively. Now.
Currently Starlink has achieved break even cash flow as per
Musk's recent posts, but SpaceX reported a profit of 55,000,000
odd $1.5 billion in revenue for the first quarter of 2023 and
then more throughout the year. The company has also raised
significant capital through stock issuance, maintaining a
strong cash position. However, it has yet to reach its
projected target of 20 million subscribers, currently having
between two and three million subscribers.
SpaceX continues to attract an investment and interest despite
the uncertainty around its cash flow predictions.
It has recently secured a contract with the US Space Force
and investments from entities like Entessa San Paulo.
Ron Baron, who is a billionaire investor himself, says potential
in SpaceX is Starlink above all else, expecting it to go public
around 2027 with a valuation between 250 and $300 billion.
Have you SpaceX and Tesla as key investments in his portfolio?
Listen to Ron Baron about this. He knows what he's talking
about, and Musk and Spacex's leadership have contemplated A
Starlink IPO once the business stabilizes.
Elon Musk has confirmed that Starlink has achieved break even
cash flow, though details remain unspecified.
And the company has launched over 5000 satellites and boasts
more than two million subscribers.
Now SpaceX is surging. Valuation, now around $150
billion, is significantly driven by Starlink.
Musk's decision to possibly take the company public reflects the
desire of long term investors to realize their investments out.
Spacex's stock sales are always notable events in the financial
markets, offering a rare opportunity for investors to buy
into one of Musk's most successful enterprises.
At the potential SpaceX stock sale shows that the company's
growth in Musk's ability to attract investment and drive
innovation is paramount to the success of Starlink and also
SpaceX. Now, the decision to go public
with Starlink alone, or any part of SpaceX, will be closely
watched because Elon Musk doesn't want to give up control
of the rocket company that will be bringing people to the
surface of Mars. And as SpaceX continues to lead
the space transportation and satellite markets, the company's
financials and strategic moves will remain a topic of interest
among investors and industry watchers.
As of right now, the public can't invest in an IPO of SpaceX
or Starlink. So we're going to have to wait a
few years until Elon Musk makes up the company's mind so we can
all invest. I'll be an investor right up
there right in the beginning. Hey, thank you so much for
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