SpaceX (SPCX), Q2 Revenue Explodes by 92%... Will it Overtake Tesla (TSLA) by 2027?

▲ Tesla (TSLA), SpaceX (SPCX)/AI Generated Image

An analysis suggests that SpaceX (SPCX) will record a larger market capitalization than Tesla Inc. (TSLA) by the end of 2027, based on its faster growth trajectory.

According to Nasdaq, a U.S. investment media outlet, on September 27 (local time), Motley Fool's analysis team compared and analyzed the growth and profitability of the two leading companies led by Elon Musk. Currently, SpaceX has a market capitalization of approximately $1.95 trillion, surpassing Tesla, which is around $1.5 trillion. Following a successful initial public offering (IPO), SpaceX's stock price has recovered to around its offering price of $150 per share, stably affirming its corporate value in the market.

In contrast, Tesla's stock price continues its sluggish trend due to worsening profitability amid intensifying competition in the electric vehicle market. Tesla's stock price has fallen by 17% this year alone and is down 24% from its all-time high. Although revenue itself continues to increase, the significant reduction in profit size has lowered its investment appeal, critics point out.

Compared to this, SpaceX is showing explosive external expansion. While SpaceX is not currently generating significant net profit, it is in a high-growth phase with a 92% surge in revenue in the second quarter. This business structure, which prioritizes market share expansion over profit in the early stages of growth, is being justified.

SpaceX is also expected to have an advantage in future margin potential. SpaceX estimates that it could achieve an operating profit margin of up to 45% once its business fully matures. This level is difficult for Tesla, which is based on automobile manufacturing, to reach. Considering its long-term profit generation potential and rapid revenue growth, it is projected that SpaceX will further widen the market capitalization gap with Tesla and establish itself as a larger company by the end of 2027.

[Article Key Summary]

-SpaceX's market capitalization is approximately $1.95 trillion, surpassing Tesla's $1.5 trillion.

-While Tesla's profitability slowdown led to a 17% decline year-to-date, SpaceX's Q2 revenue surged by 92%.

-SpaceX is expected to emerge as a larger company by the end of 2027, based on its future target profit margin of 45%.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*