Elon Musk is a master business mind. He is the hyper successful founder of the car company Tesla, and recent founder of space travel company SpaceX. Currently Tesla is valued extremely highly with a market valuation of more than $430 billion, though some speculate that SpaceX has the potential to reach the same market value in the future.
The speculator with the most credentials is none other than billionaire investor Ron Baron. In a statement to CNBC Baron said, “SpaceX I think has a chance to be just as large as Tesla.”
The investment firm which Baron owns has significant shares in both Tesla and SpaceX. The firm has 1.6 million shares in Tesla and 1.3 million shares in SpaceX.
According to CNBC, “Tesla’s stock is up more than 433% this year, meaning Baron’s stake is worth about $3.5 billion as of Tuesday’s close – with the company’s market valuation at about $417 billion. Earlier this year Baron said he believes Tesla has the potential to hit “at least” $1 trillion in revenue by 2030.”
Tesla is doing exceptionally well right now. It successfully overcome the hurdles and turbulence encountered as a result of the coronavirus pandemic. Furthermore, as the stock market continues to do well, so too has Tesla.
But what about SpaceX? The company is still in its incubator phase, but it has nonetheless made strides. It has developed lots of successful technology and completed projects such as Crew Dragon astronaut capsule, its Starlink satellite internet service, and its next generation starship rocket.
Due to the rapid development of technology and strides it has made in the space travel industry, Baron firmly maintains that the company will reach the same value of Tesla.
Baron told CNBC “what I want to be known as, ultimately, is not just the Tesla guy, but also the SpaceX guy. In the next couple years, I’m going to be talking to you a lot more about SpaceX than I’m going to be able to do right now.”
It is clear that Baron as well as many others predict a successful future for the space firm, SpaceX. A matter that ought to be considered, however, is how the average consumer will respond to a company as futuristic as SpaceX. Who will the primary customers be? What will be the cost of its services?
These are all factors that ought to be considered with regard to the future of SpaceX.