SpaceX (SPCX) Guarantees $1 Trillion by 2030...Stock Price Plunges After Pouring $18.4 Billion

▲ SpaceX (SPCX), stock price decline/AI-generated image

SpaceX (SPCX) moved up its target for achieving $1 trillion in revenue to 2030, but capital expenditures amounting to $18.4 billion dragged down its stock price by approximately 9%.

Peter Diamandis, founder of the XPRIZE Foundation and an early investor in SpaceX, stated in an interview with CNBC on August 5 (local time) that “Elon Musk can do it,” suggesting that SpaceX has the potential to grow into the world's first $10 trillion company. Diamandis evaluated SpaceX not as a single company but as a massive infrastructure enterprise with four vertically integrated businesses.

In its first earnings announcement after listing, SpaceX projected its Annual Recurring Revenue (ARR) to exceed $100 billion by December this year. The target for achieving $1 trillion in annual revenue was moved up from 2031, as previously presented before its IPO, to 2030. Musk stated, “There's also a non-zero possibility of achieving it in 2029.” Although revenue and net profit surpassed market expectations, the stock price dropped by approximately 9%. The substantial investment burden was highlighted as Q2 capital expenditures reached $18.4 billion.

Diamandis named Starlink as the first growth pillar. Starlink is expanding its services to provide gigabit-class internet worldwide and direct satellite-to-phone connectivity. The revenue potential of the satellite mobile communication market presented in the earnings report is $600 billion. Diamandis believes that services enabling mobile phone connections even in mountainous or remote areas will drive the growth of the telecommunications business.

The second growth pillar is the Artificial Intelligence (AI) computing business. SpaceX has secured contracts worth $28 billion on an annualized basis in this sector. Computing capacity is expected to reach 2 gigawatts by the end of this year and expand to up to 10 gigawatts next year. Diamandis assessed that the AI business has the potential to become SpaceX's largest revenue source in the long term.

Space-based AI computing plans have also been materialized. Musk announced that in collaboration with NVIDIA (NVDA), the first AI satellite would be launched in 2027. Diamandis explained that the business structure, which builds terrestrial communication networks, AI data centers, and space computing networks together, supports SpaceX's $1 trillion revenue target.

[Article Key Summary]

-SpaceX moved its target for achieving $1 trillion in annual revenue from 2031 to 2030.

-Despite strong performance, the stock price fell by approximately 9% due to Q2 capital expenditures reaching $18.4 billion.

-Peter Diamandis assessed that SpaceX could grow into a $10 trillion company based on Starlink and its AI computing business.

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