SpaceX Goes Public, Sparks Investment Debate
Space Exploration Technologies (SpaceX) is now publicly traded on NASDAQ under the symbol SPCX, raising questions among investors whether to shift focus from Tesla Inc. (NASDAQ: TSLA), which has been public for 16 years. As of the latest evaluations, SpaceX’s market capitalization stands at $2 trillion, surpassing Tesla’s $1.5 trillion, despite the latter generating $98 billion in annual sales compared to SpaceX’s $19.3 billion.
While Tesla has been profitable since 2019 with a positive free cash flow of $7 billion, SpaceX reported a loss of $8.7 billion last year and is burning approximately $20 billion annually. Interestingly, SpaceX claims that $26.5 trillion of its anticipated $28.5 trillion total addressable market will come from artificial intelligence, drawing comparisons with Tesla’s growth prospects in autonomous vehicles and robotics.
Despite the allure of SpaceX’s IPO and future potential, analysts caution that it might be overvalued compared to Tesla, which has historically provided stability and cash reserves amounting to nearly $30 billion more than its debt. Moreover, the two companies are seen as potentially overlapping in operations, raising further questions about the investment landscape.
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