SpaceX could become a $101 billion company, says Morgan Stanley

Space Exploration Technologies Corp. (SpaceX) designs and manufactures rockets and spacecrafts to launch astronauts and cargo to space destinations. SpaceX was founded by Elon Musk in 2002, with the ultimate mission to make life multiplanetary. Musk envisions a fleet of Starships embarking on a Mars voyage to create a sustainable colony before the year 2050. The company could completely change the course of humanity's future.

SpaceX is a leader in aerospace innovation, engineers developed the first orbital-class Falcon 9 rocket that is capable of returning to Earth from space after every mission. The Falcon 9 rocket's first-stage booster lands vertically on autonomous droneships at sea. Recovering boosters to reuse multiple times significantly reduces the cost of spaceflight. The company has developed some of the world's most advanced spacecrafts as well. In May, SpaceX officially returned human spaceflight capabilities to the United States when it launched a pair of NASA astronauts aboard the Crew Dragon spacecraft to the International Space Station.

SpaceX is also leveraging its experience launching rockets to deploy a mega-constellation of internet-beaming Starlink satellites to Low Earth Orbit (LEO), designed to provide broadband connection on a global scale. SpaceX aspires to connect the millions of individuals worldwide who do not have access to internet connection in their communities. Company officials state Starlink satellites will be capable of providing low-latency, high-speed broadband internet service everywhere, even to the most remote areas on Earth.

Morgan Stanley financial analysts predict SpaceX could become a $101 billion company long-term due to its ability to reuse rockets, launch astronauts to orbit, Starship launch vehicle, and the deployment of the Starlink network. CNBC news reports, a Morgan Stanely financial analyst, Adam Jonas, wrote a letter to investors about how SpaceX will increase (double) its valuation. The company is currently valued at approximately $50 billion. --"SpaceX continues to solidify its place as 'mission control' for the emerging space economy," he wrote. Morgan Stanley states that in the future, SpaceX's rocket business could reach a $11.7 billion valuation. Due to rocket reusability, "SpaceX is widely seen as the low cost launch provider in the global launch market," Jonas stated.

He said the Starlink network could grow towards a $80.9 billion valuation.--"The pieces are coming together for SpaceX to create an economic and technological flywheel. [...] It is clear to investors and industry observers that SpaceX's launch cost advantages are being used to accelerate deployment of its LEO broadband network," Jonas said, "As the company achieves pole position in LEO, which many believe is a winner take most (if not winner take all) arena ... the promise of a viable and capable satellite broadband service increases, helping the company attract large amounts of capital at attractive rates, further enabling development of even more capable launch architectures (Starship) that further deepens and widens the moat in satellite launch costs," he said, according to CNBC reporters. Read more information in the CNBC news article linked below.  

Morgan Stanley doubled its long-term valuation for SpaceX to $101 billion:

"SpaceX continues to solidify its place as 'mission control' for the emerging space economy" with Starlink and Starship.

Here's how the firm values Elon Musk's company: https://t.co/siIf2HfKfN

— Michael Sheetz (@thesheetztweetz) October 22, 2020

SpaceX plans to use Starlink's revenue to additionally fund the development of a Starship fleet. Starship will not only be utilized for long-duration voyages to Mars, SpaceX will return astronauts to the Moon with a lunar-optimized Starship for NASA. SpaceX is also developing a variant of Starship that will be used to transport passengers to point-to-point cities around Earth in under an hour! Morgan Stanley predicts that Starship as an Earth-to-Earth transportation service could reach a valuation of $8.7 billion one day. "While there is excitement around the use of Starship infrastructure for deep space exploration and hypersonic Earth-to-Earth transportation, investors must consider the nearer-term use case of deploying Starlink satellites in a high number," Jonas said. "[...] We believe SpaceX is disruptive enough not just to dominate share in the global launch market, but to grow the overall pie substantially," he added.