Musk's Ambitious SpaceX Plan: Can It Generate $3.5 Trillion in Revenue?
SpaceX, led by Elon Musk, aims to become the world's most valuable company. In a recent post on X (formerly Twitter), Musk stated that SpaceX could generate $3.5 trillion in revenue by 2033 and become worth more than the rest of Earth if it accomplishes its goals.
However, investors are skeptical about SpaceX's ability to achieve this goal. The company has already erased over $1 trillion in market capitalization since its peak at $2.7 trillion. Its current valuation is around $1.4 trillion, down from a high of $2.7 trillion after the initial surge following its IPO.
SpaceX's biggest driver is AI, and the company has made significant investments in this area, with plans to build massive Colossus AI data centers. However, Evercore ISI estimates that the company's capital expenditures could reach $360 billion by 2030, mainly towards AI investments.
The problem for SpaceX is that it has only generated $12.5 billion in total revenue in the first six months of this year, a far cry from Musk's estimate. Moreover, SpaceX faces intense competition in the AI space from other major players such as OpenAI, Anthropic, Microsoft, and Alphabet.
Investors are wary of SpaceX's spending spree on AI without profits. Profitable AI companies like Microsoft are growing at a healthy clip and seeing their share prices rise, but the AI trade overall is skeptical of negative free cash due to AI capital expenditures.