Investor Cathie Wood-led ARK Invest on Monday backed the $1.75 trillion valuation for commercial space flight company SpaceX as it gears up for its upcoming IPO.
$1.75 Trillion Valuation Is Plausible
The firm shared that its research pointed towards the valuation being warranted. “$1.75 trillion IPO target is grounded in a plausible trajectory for each of SpaceX’s core business segments,” including Starlink, the xAI merger, as well as the company’s launches, which are backed by a “durable” trajectory and “structural advantages,” ARK said.
Further illustrating bullish sentiments, ARK hailed the SpaceX-xAI merger. “The xAI merger has added a strategic dimension to the platform that no comparable public company has even attempted to replicate,” it said in the statement, also backing Musk’s orbital datacenter goals.
“Musk’s goals are ambitious by any historical standard, and SpaceX has repeatedly demonstrated the ability to compress the timelines that skeptics once assumed,” the investment firm shared.
SpaceX IPO Delay?
The comments come as bettors on prediction market platforms Kalshi and Polymarket had earlier bet on a 90% chance that the awaited IPO would get delayed beyond its original June timeline, with more than a 90% chance that the IPO would take place sometime beyond September this year.
Interestingly, some analysts have expressed concerns about SpaceX’s valuation, with some suggesting that investors participating in the IPO would likely not see strong returns on their investment because much of the value for SpaceX was already priced in.
Meanwhile, SpaceX has reportedly accelerated its vesting date, informing employees that the date when the stock option shares would become eligible for sale would be this month instead of in May.
Check out more of Benzinga’s Future Of Mobility coverage by following this link.
Photo courtesy: Shutterstock
Recent Comments