Bank: SpaceX worth $100bn

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Elon Musk is sitting on another gold mine if a valuation from Morgan Stanley is anywhere near accurate.

The bank – in a best-case valuation – says that Musk’s SpaceX rocket business and its Starlink satellite subsidiary is worth $100 billion. This is undoubtedly good news for Musk, not only in the core valuation but that the business is worth double what Morgan Stanley suggested it could be worth back in July, which was a mere $52 billion.

Indeed, if the bank’s ‘bull-case’, its top estimate, is accurate then the value of the rocket business could be above $200 million.

Morgan Stanley breaks down its valuation, saying that the pieces are coming together for SpaceX to create an economic and technology flywheel, albeit needing hundreds of millions of further investment.

The bank says that SpaceX’s launch business alone is worth $12 billion. Its space travel business could be worth another $9 billion. The big gainer in the bank’s view is Musk’s Starlink broadband system and where the bank doubles its valuation from $42 billion earlier this year to today’s $81 billion.

Morgan Stanley suggests that by 2040 Starlink could have 364 million subscribers around the world.

If that’s the upside then the downside is the cost of reaching that sort of subscriber number, which the bank’s report says could cost $240 billion.

Investor magazine Forbes reports that Chad Anderson, an existing investor in SpaceX via Anderson’s Space Angels business, says that Starlink could see revenues of $30-$50 billion per year.


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