SpaceX

Investment Idea Details

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About the company

SpaceX is a revolutionary rocket and spacecraft manufacturer. The company creates and launches modern rockets and spacecrafts.

SpaceX was founded by Elon Musk in 2002 and upended the rocket industry by successfully introducing and implementing the application of reusable rockets. The company’s ultimate goal is to enable people to live on other planets.

SpaceX also aspires to become the leading and first satellite service provider. In May 2019 the company launched the first 60 satellites for its space internet Starlink.

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Risks

In some business segments SpaceX may experience intense competition, with Amazon’s plans to launch its satellite internet. This may have a negative impact on SpaceX’s value.

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Market Opportunities

SpaceX shows strong growth rates of key revenue drivers. In 2012 the company launched two Falcon 9 rockets, and in 2018 SpaceX made 20 successful launches of Falcon 9 and another successful launch of Falcon Heavy.

SpaceX intends to launch up to 12, 000 satellites in the near future to bring affordable internet access to people all over the world.

SpaceX’s upcoming project in the pipeline is Starship scheduled for its first commercial mission in 2021. The lofty goal behind Starship is to send people and resources to the surface of Moon and Mars.

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Financials and Valuation

In 2018 SpaceX brought in $2,02 billion in revenue, growing from $1,3 billion in 2017, an annual growth rate of 55%. The number of launches of rockets grew from twofold increase in 2012 to 21-fold increase in 2018, an annual growth rate of 40%.

The value of SpaceX in latest funding round in June 2019 was as high as $35 billion. Currently (July 2019), the company’s shares trade on OTC market at $360 per share, equivalent to $60 billion worth in equity value.

According to our estimates, the projected value of SpaceX is to reach $147 billion by 2025. The potential return on investment by 2021 (scheduled IPO date) will be over 100%.

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