Today, SpaceX has become a dominant force in the industry. Starlink project, a growing constellation of satellites is one of its many ambitious project. SpaceX has captured the imagination of both investors and space enthusiasts alike.

SpaceX valuation

In recent news, it has come to light that SpaceX is considering a share sale that could value the company at an astounding $175 billion or more. SpaceX CEO Elon Musk announced on Twitter that the company’s Starlink satellite internet business “achieved breakeven cash flow.” Two years ago, Musk emphasized that making Starlink “financially viable” required crossing “through a deep chasm of negative cash flow.”

This potential SpaceX valuation would make, it one of the most valued companies in the world, surpassing giants like Disney and Comcast.

Potential Share Sale and Valuation of SpaceX

According to sources, SpaceX has initiated discussions about insider share sale at a price that would value the company at $175 billion or higher. The company is reportedly considering a tender offer ranging from $500 million to $750 million, with shares priced at approximately $95 apiece. This potential SpaceX valuation represents a significant premium to the $150 billion valuation the company obtained through a tender offer earlier this year.

The terms and size of the tender offer may vary depending on the level of interest from both insider sellers and buyers¹. However, if the $175 billion valuation is realized, it would position SpaceX among the world’s 75 biggest companies by market capitalization, on par with industry titans such as T-Mobile USA Inc., Nike Inc., and China Mobile.

SpaceX’s dominance in Space Industry

SpaceX, formally known as Space Exploration Technologies Corp., is based in Hawthorne, California, and has emerged as a dominant player in the market for commercial space launch services¹.

One of the key factors contributing to SpaceX’s success is its Falcon rockets, which have established the company’s near-monopoly on the U.S. satellite launch market. SpaceX has consistently outperformed its closest rival, China’s space agency, in terms of the number of orbital launches. In the first nine months of this year alone, SpaceX made 69 orbital launches, compared to China’s 30.

SpaceX has extended its operations to government contracts as well as the private sector. The company sends payloads to orbit for private-sector customers, as well as for prestigious organizations like the National Aeronautics and Space Administration (NASA). This diverse portfolio of clients has contributed to SpaceX’s revenue growth, which is expected to reach approximately $9 billion this year and rise to $15 billion in 2024.

Starlink project and its potential

In addition to its rocket launch services, SpaceX is also making waves with its Starlink project. Starlink aims to provide internet connectivity from space, utilizing a growing constellation of satellites in low-Earth orbit. The service has gained significant traction, with over 1.5 million subscribers in less than three years since its debut.

The potential of Starlink to generate substantial revenue cannot be understated. SpaceX projected that the Starlink would achieve profitability in 2023, following a cash flow positive quarter in the previous year. This success has been further bolstered by winning a Pentagon contract to provide Starlink service in Ukraine, although the financial details of the agreement remain undisclosed.

SpaceX’s financial performance and IPO speculation

Despite its astronomical valuation, SpaceX has not been immune to financial challenges. After two years of losses, the company reported a $55 million profit for the first quarter of 2023, with revenues reaching $1.5 billion². This positive financial performance reflects the company’s ability to navigate the complexities of the space industry and capitalize on its diverse revenue streams.

In recent months, speculation has been rife about a possible SpaceX IPO, particularly with its Starlink division. However, Elon Musk denied reports that SpaceX was considering an IPO for Starlink by 2024³. Musk indicated that an IPO for Starlink is unlikely before 2025 or later.

SpaceX’s impact

The soaring valuation of SpaceX, potentially reaching $175 billion or more, is a testament to the company’s extraordinary achievements and its position as a leader in the space industry. With its Falcon rockets dominating the commercial space launch market and the rapid growth of its Starlink project, SpaceX has captivated the imagination of the world.

While the future remains uncertain, one thing is clear: SpaceX is poised to continue pushing the boundaries of space exploration and technology. Whether SpaceX embarks on an IPO, further expands its satellite network, or achieves its audacious goal of Mars colonization, SpaceX’s impact on the world of space will undoubtedly be profound.

The post The Soaring Valuation of SpaceX: A Closer Look appeared first on Industry Leaders Magazine.

California-based rocket builder SpaceX successfully launched a new batch of Starlink internet satellites into orbit late on Wednesday. A group of 60 satellites were launched and also nailed a rocket landing at sea to top off the mission. The launch is the second event in five days for SpaceX.

On Saturday, a separate Falcon 9 rocket sent NASA astronauts Bob Behnken and Doug Hurley aboard a Crew Dragon capsule to the ISS. This kicked off the SpaceX’s landmark Demo-2 mission. The two astronauts docked with the orbiting lab around 19 hours later and will remain in the ISS for 1-4 months. The Falcon 9, whose first stage had already flown four times before, lifted off at 9:25 p.m. EDT from the Space Launch Complex 40 at Cape Canaveral Air Force Station in Florida. The rocket used in the satellite launch is the second Falcon 9 first stage to fly five times. The booster previously launched two other Starlink missions as well as a batch of Iridium NEXT satellites and a Canadian communications satellite.

The first attempt at flying a booster by SpaceX’s did not go as planned. That early stage, which launched 60 Starlink satellites this past March, experienced an engine anomaly as it climbed into the sky. Though the satellites launched into orbit, the booster missed its landing on a drone ship at sea and was successfully destroyed. An investigation revealed that some residual cleaning agent was trapped in the engine, which caused the anomaly.

The recent satellite launched rocket landing involved the drone ship ‘Just Read the Instructions.’ The ship, which was initially based on the West Coast, was moved to the East Coast last year. This is the first mission it was used since the shift. This is because SpaceX’s first drone ship, “Of Course I Still Love You,” was busy bringing the Demo-2 booster back to port. This is the first time that SpaceX has had both of its drone ships operational in the same ocean.

The latest flight is the eighth 60-satellite mission for SpaceX’s Starlink project, which brings the total number of satellites launched for the nascent broadband network to 482. The launch was initially planned to take off in mid-May but was duly postponed due to poor weather and schedule conflicts.

SpaceX plans to build a constellation of Starlink satellites 12,000 strong. The project is designed to provide high-speed internet service to customers worldwide, especially to people in remote areas. SpaceX founder and CEO Elon Musk stated that at least 400 Starlink crafts are needed before SpaceX can roll out minimal internet coverage. The company requires at least 800 satellites to provide moderate coverage. That service could start later in 2020.

With the considerable number of satellites in orbit, SpaceX is operating the most extensive satellite fleet ever in orbit. However, ever since the first launch, SpaceX company is always under fire from astronomers as well as scientists over concerns that the constellation’s apparent brightness will disrupt astronomical observations.

SpaceX has been rigorously experimenting with different ways of reducing the satellites’ brightness. Musk and SpaceX stated that they would add unique sunshades to the upcoming Starlink satellites. These sunshades would act as a visor of sorts that would limit the craft’s reflectivity. The first such visor-equipped Starlink craft took flight on the recent mission.

To get Starlink started and running, SpaceX needs more than just satellite launches. It also requires user terminals. In March 2020, SpaceX was approved for up to one million user terminals as part of a blanket license. The hardware used will be simple enough that anyone can install it, and according to Musk, who stated that the terminals look like a “UFO on a stick.” The terminals would be available with two simple instructions — the plugin and point at the sky instruction— and would be equipped with actuators that ensure they’re pointing where they should be at all times. Following the satellite launch successful liftoff, the veteran Falcon 9 booster landed on a floating platform at sea, marking the company’s 53rd successful recovery. SpaceX has two more flights on the pipeline for June, another batch of Starlink satellites, and an upgraded GPS satellite for the U.S. Space Force.

The post SpaceX Launches 60 Starlink Satellites for Megaconstellation appeared first on Industry Leaders Magazine.