Well-known investors: SpaceX (SPCX.US) may be worth 50 trillion dollars in ten years. Musk said, “Your estimate is still too low!”

The Zhitong Finance App learned that billionaire investor Ron Barron, who has been deeply involved in the investment industry for 56 years, believes that the valuation of SpaceX (SPCX.US) may reach 50 trillion US dollars in the next ten years, which is close to 25 times the room for growth compared to the current valuation. He also said that SpaceX CEO Elon Musk told him that the forecast might still be conservative.

SpaceX fell more than 4% on Tuesday, its worst single-day performance in more than two months, and is down 3% so far this year.

Barron's $50 trillion SpaceX valuation theory: More than Starlink

Barron said in a recent interview: “In 10 years, I think the stock price will reach thousands of dollars. I think its valuation will reach 20 trillion, 30 trillion, or even 50 trillion dollars. Elon thinks I'm underestimating it.” He said he has “never seen” a company like SpaceX, and its potential goes far beyond rockets.

He sees Starlink as the primary source of future value. “Starlink alone will be worth about $14 trillion to $15 trillion over the next ten years.” In an August interview, Barron gave a more detailed forecast: Starlink's annual revenue may grow from 15 billion to 17 billion US dollars, reach 1 trillion US dollars within 10 years, and annual profit of 700 billion to 800 billion US dollars.

Barron also sees greater opportunities in orbital data centers. “Data centers in space, oh my gosh, that's incredible.” He added that these facilities can circumvent the Earth's electricity, water resources and licensing restrictions, and the final value may be several times that of Starlink.

Morgan Stanley analyst Adam Jonas also emphasized SpaceX's computational ambitions. In an excerpt from the minutes shared by investor Sawyer Merritt on X, Jonas listed the “distributed inference cloud” as the company's most overlooked growth opportunity. He said that the expansion of the physical AI system network may drive the demand for greater computing power, and investors are expected to pay more attention to this topic in the coming year.

SpaceX focuses on SHIP 40 heat shield and engine data

Barron's investment logic also depends on SpaceX reducing the cost of entering orbit. He has said that Starship may eventually reduce the launch cost from about 1,500 US dollars/kg to 150 US dollars/kg, giving the company a “huge advantage.”

SpaceX has now transported the starship used in the 13th flight aboard the SHIP 40 back to the star base. The aircraft survived a splash in the Indian Ocean and was transported to Texas. The company said the aircraft will provide “first-of-its-kind data” on flying heat shields, raptor engines, avionics and other systems.

Barron also said in the interview that his company has invested about 2.5 billion US dollars in SpaceX since 2017 and holds 1.25% of the company's shares. As of June, the holding was worth approximately $25 billion. In August, he said Baron Capital wanted to invest another $1 billion and expected to earn “hundreds of billions of dollars” from SpaceX holdings.

The Baron First Principles ETF (RONB.US) provides investors with Barron's exposure to SpaceX. As of Monday, the fund held 905,118 shares of SpaceX, the largest holding of SpaceX, accounting for about 41% of assets. The Baron First Principles ETF has fallen nearly 1% this year, with SPDR S&P 500 ETF Trust (SPY.US) rising 15% and Invesco QQQ Trust (QQQ.US) rising 21% over the same period.

His advice to his friends was to keep increasing positions. “You should buy some SpaceX and keep buying every month.” He said investors should keep buying even if they wake up worried that they have taken too much risk.

However, in August, he said, “I have no idea what price this stock will sell for in the short term.” He also mentioned that after the lockdown period expired, about 270 million SpaceX shares were shorted, and at the same time, more than 911 million shares of early investors were eligible for sale.

His confidence comes in part from his previous bets on Musk. Barron said his company invested 400 million US dollars in Tesla between 2014 and 2016 and has earned about 7.7 billion US dollars so far. He expects this investment to grow fivefold over the next 10 to 15 years.

On Stocktwits, SpaceX's retail sentiment slipped from bullish a week ago to bearish, and the volume of news is at a high level. However, the Baron First Principles ETF's sentiment performance was better, remaining neutral, and rebounded from a day ago's bearishness, but retail attention declined over the past three months, with followers falling by more than 10%.

One user said, “Personally, I think we have just entered the beginning of a major round of adjustments. I would like to see $125 tested again before considering opening a position.”

Another user lamented, “Can you imagine SpaceX rising to $2,000 by 2030? My $60,000 would be worth over $700,000 lol.”