Morgan Stanley’s estimates were noted in a research note published last Thursday SpaceX: Raising valuation scenarios after major growth. One report listed SpaceX’s recent $ 1.9 billion funding round and the company’s “continued momentum in winning government contracts” from NASA and the US Department of Defense. Forbes. Interestingly enough, the Wall St. firm gave SpaceX a “bull case” valuation of over $ 200 billion.
Morgan Stanley in its note described SpaceX as “mission control” for the “emerging space economy”. This is largely due to the company’s launch capabilities, which carry satellites, humans and equipment into space; Starlink, which is expected to provide worldwide Internet connectivity through a constellation of satellites; And travel from Earth to Earth, which could be a potential competitor for the long haul. The firm noted, “SpaceX is coming together to create an economic and technology flywheel.”
While the investment bank cited SpaceX’s launch business as a major factor in its revised valuation, it was Elon Musk’s Starlink satellite that eventually became the biggest driver for Morgan Stanley’s valuation upgrades. The investment firm had already considered Starlink to be worth $ 42 billion, but in its revised estimate, the figure was raised to $ 81 billion. This was based on Morgan Stanley’s adjusted estimate of Starlink’s potential customers from 235 million to 364 million globally.
To reach these numbers, the Wall Street firm estimates that SpaceX will have to spend approximately $ 240 billion to build its global satellite Internet network.
Undoubtedly ambitious, Starlink’s potential is recognized by Space Capital’s managing partner and Space Angels CEO Chad Anderson. Anderson said that SpaceX could see future revenue from Starlink in the range of $ 30 billion to $ 50 billion per year. This means that even a conservative valuation will at times put StarLink at $ 90 billion on its own. And this, explained the CEO of Space Capital, does not even count SpaceX’s capacity for deep space projects, such as from starship missions to Mars.
“It’s almost impossible to keep specifics on what the opportunities are,” Anderson said.