Musk recalled a 1,000-fold rise in Tesla's stock price. Can SpaceX rise in price the same way?

Billionaire Elon Musk reminded on social network X that Tesla's market capitalization at the time of its IPO was only 0.1% of its current value. In June 2010, Tesla was worth about $1.7 billion, and now its valuation is about $1.6 trillion, Barron's noted.

Musk's post came shortly before the massive IPO of his private space company SpaceX, which is expected to raise a record amount of funds and allow the company to reach a $2 trillion valuation. Whether Musk was thus supporting the upcoming SpaceX IPO or simply recalling Tesla's history is unclear, Barron's notes: Tesla and SpaceX did not respond to the publication's request for comment.

Elon Musk's space company plans to get a valuation of $1.75 billion as a result of the IPO, Reuters wrote on June 2, citing two sources. In late May, Bloomberg wrote that SpaceX is focused on a valuation of at least $1.8 trillion. At the same time, back in April, the company expected, according to the agency, to be listed with a capitalization of more than $2 trillion.

Based on these figures, investors should not expect that SpaceX shares will grow 1000 times over the next ten years, emphasizes Barron's. In such a case, the capitalization of SpaceX would be calculated in quadrillions of dollars and would reach about 15 world GDP, the publication explains. When Tesla went public, its value was 0.003% of global GDP, and now it is worth about 1.5% of global GDP, Barron's writes.

Investment-rating agency Morningstar has begun analytical coverage of SpaceX, which is preparing for an IPO, and immediately warned that its value is significantly overvalued. The agency believes investors will have a chance to buy shares of Elon Musk's company cheaper than they did at its stock debut. The company's fair value is $780 billion - half its current valuation in the over-the-counter market, Morningstar said.

This article was AI-translated and verified by a human editor