New York, USA – SpaceX shares continued their upward momentum on Monday, rising 6% on the Nasdaq stock exchange. This followed their historic performance last week, which saw the largest initial public offering in history.
The surge was fueled by a significant 19% jump in the stock price on Friday, closing at $161.
This pushed the aerospace company’s market capitalization past the $2 trillion mark.
Musk’s ambitions: trillion-dollar revenue
In a move to bolster investor confidence, Elon Musk, the company’s CEO, posted ambitious future projections on the X platform.
He indicated that the company could reach $1 trillion in annual revenue by 2030.
He added in a subsequent post, “I’d be surprised if revenue doesn’t exceed $1 trillion in 2031.”
These projections come as the company announced revenues of $18.7 billion for 2025.
In the same year, the company reported operating losses of approximately $5 billion.
Analysts divided: Is it a future bet or a bubble?
Despite Musk’s enthusiasm, the company’s valuation is facing sharp criticism from some financial institutions.
CFRA initiated coverage of the stock with a “sell” recommendation and a price target of $115,
citing its “highly ambitious growth strategy and significant capital intensity.”
The company’s capital expenditures in the first quarter of 2026 jumped to $10.1 billion,
the majority of which is directed toward artificial intelligence projects.
Similarly, Morningstar described the stock as “overvalued,” estimating its fair value at just $63.
Paulina Roskowska, a lecturer at Bays Business School, criticized the lack of detail in the prospectus.
She argued that the company is selling “big promises” that need to be translated into actual cash flow.
She also noted the company’s lack of adequate governance.
A long-term investment story
On the other hand, other analysts are taking a more optimistic view. New Street Research initiated coverage with a target price of $165.
James Ratzer, an analyst at the firm, emphasized that SpaceX represents a long-term investment story (20-25 years).
He also stated that it is at least 10 years ahead of its competitors in launch capabilities.
Furthermore, Ratzer asserted that SpaceX’s dominance through its Starship vehicles and its ability to place massive payloads into orbit,
along with its Starlink ambitions and orbital data centers, gives it a competitive edge.
This advantage could guarantee it control of 95% of space launch capacity within the next five years.
This is the bet that backers see as justifying the high valuation.
