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SpaceX becomes public company valued at $1.8 trillion

SpaceX began trading on the NASDAQ at $135 a share, valuing the company at nearly $1.8 trillion, with shares closing at $160.95.

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SpaceX, founded by Elon Musk in 2002, began trading on the NASDAQ on Friday, with its shares opening at $135 per share. This valuation places the company at nearly $1.8 trillion, marking a significant milestone in its history. By the end of the trading day, the shares had risen to $160.95, representing an increase of over 19 percent. According to the source, this valuation has made Musk the world's first trillionaire, with his personal stake in the company valued at more than $700 billion.

Additionally, thousands of current and former employees have become overnight millionaires due to the company’s stock options plan. SpaceX’s rapid ascent to one of the most valuable companies in the world has sparked debate about whether its high valuation is justified or if it represents a speculative risk. SpaceX has also emphasized its shift toward AI as a core part of its business strategy, highlighting its potential to generate significant profit through orbital data centers. This strategic pivot has raised questions about how the company will balance its obligations to NASA and its growing focus on AI-driven enterprise applications.

The company’s recent financial performance, including its Starlink services and AI contracts, has shifted its revenue sources away from government contracts, which were previously a major portion of its income. This change has implications for its future priorities and how it will allocate resources in the coming years. SpaceX’s ability to maintain its high valuation will depend on its capacity to deliver on its AI ambitions and meet investor expectations. The company’s next steps will be closely watched by both investors and government agencies like NASA, which has relied on SpaceX for critical space missions.

The shift in focus to AI could impact the timeline for the Artemis program and the development of the Starship rocket, which remains central to NASA’s lunar ambitions. SpaceX’s strategic direction will ultimately determine whether its current valuation is sustainable or if it faces challenges in meeting investor demands.

Source: arstechnica

Key points

SpaceX began trading on the NASDAQ at $135 a share, valuing the company at nearly $1.8 trillion.
SpaceX founder Elon Musk became the world’s first trillionaire with a personal stake valued at more than $700 billion.
SpaceX views its 'space-enabled solutions' and Starlink Internet constellation as comprising less than 7 percent of its value.
SpaceX’s value is primarily attributed to providing AI services, mostly from space, and primarily for enterprise applications.
Starlink revenues have significantly outstripped NASA’s contracts, which were previously a major portion of SpaceX’s income.
NASA relies on SpaceX for critical space missions, including the Artemis program, but the company’s recent financial focus is on AI contracts.
SpaceX’s ability to maintain its high valuation will depend on its capacity to deliver on its AI ambitions and meet investor expectations.

Source: Ars Technica Read the original →

WRITTEN BY

Marcus Feld

AI Business & Markets

Marcus reports on AI funding, acquisitions, partnerships, and the business behind the technology.