Musk: "SpaceX Will Be Worth More Than the Entire Earth"

"Tens of Thousands to the Moon Within 10 Years"
Plans for a Self-Sustaining Lunar City
Diverging Target Prices After IPO...
Commercialization of Starship Is Key

Elon Musk, CEO of Tesla, stated that SpaceX, the aerospace company he founded, will one day have a value greater than that of the entire Earth.

On July 10 (local time), the financial weekly Barron's reported that Musk said on X (formerly Twitter) the previous evening, "If we achieve our goals, SpaceX will be worth more than the rest of Earth combined."

This is not the first time Musk has made such bold claims about his companies. In 2022, he also asserted that Tesla would be worth more than the combined value of Apple and Aramco. At that time, the total market capitalization of the two companies was 4.4 trillion dollars (about 6,600 trillion won). However, four years later, Tesla's corporate value still stands at 1.8 trillion dollars, falling short of Musk's claim.

Previously, in a radio interview, Musk outlined SpaceX's goal of sending tens of thousands of people to a lunar base within the next ten years. To achieve this, he aims to send astronauts to the Moon within the next two to three years, gradually expanding the missions so that eventually any ordinary person who wishes can travel to the Moon or Mars. Musk explained, "We will build a self-sustaining city on the Moon like a metropolis," expressing his expectation that people could permanently relocate or take long vacations to the Moon or Mars.

However, there are mixed opinions regarding the company's prospects. Morgan Stanley projected that, under a pessimistic scenario where Starship is not fully operational by 2029, the stock price could fall to 75 dollars per share (about 112,700 won). As of the closing price that day, SpaceX's stock was at 145.30 dollars per share (about 218,300 won), marking its lowest level since the initial public offering (IPO). Still, the current target price is 300 dollars (about 450,000 won) per share, and if an optimistic scenario unfolds, it could reach 600 dollars (about 900,000 won) per share.

In contrast, Citibank presented an optimistic scenario with a projected stock price of 900 dollars per share. In this case, the company's value would reach 12 trillion dollars, which translates to approximately 18,000 trillion won.

Keith Snyder, an analyst at CFRA Research, issued a "sell" recommendation for SpaceX with a target price of 115 dollars per share. While he acknowledged the potential of the Starlink business, he raised questions about whether the current valuation and growth outlook are sufficiently backed by actual performance.

Financial information provider FactSet reported that the average target price among analysts was calculated at 240 dollars per share. Revenues are expected to reach 630 billion dollars by 2031, with operating profit surpassing 340 billion dollars in the same year.

For SpaceX to get closer to Musk's long-term vision, it appears that significant additional funding will be necessary. Barron's analyzed that SpaceX may require approximately 150 billion dollars in additional capital over the next five years.

This content was produced with the assistance of AI translation services.