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SpaceX isn’t just a rocket company anymore — and its wide-ranging bets on everything from satellites to artificial intelligence have sparked a mixture of enthusiasm and anxiety across Wall Street.On one hand, Elon Musk’s company is minting cash from Starlink, the satellite operator that beams internet access to homes, businesses and governments worldwide.
On the other hand, SpaceX recently ingested a money-losing AI division that houses the social media app X and xAI, known for its snarky Grok chatbot.While investors are wagering on Musk’s grandiose plans to fly humanity back to the Moon and eventually to Mars, not everyone is convinced.SpaceX disclosed $4.9 billion in losses last year ahead of its IPO.
That has led skeptics including famed short-seller Jim Chanos to argue its valuation is far too high.Here’s a rundown of SpaceX’s businesses, including those that are making money — as well as the ones whose losses are still churning stomachs on Wall Street.Musk’s satellite network is the golden goose at SpaceX, with an existing network of more than 10,000 satellites in orbit and more than 10 million subscribers around the world.Starlink had an operating profit of $1.19 billion in the first quarter of this year and some analysts project that its annual revenue could hit $20 billion in revenue in 2026 alone – making it SpaceX’s largest division by far.Starlink accounted for about 60% of SpaceX’s overall revenue last year, which came in at $18.7 billion – up 33% year-over-year.Musk has teed up plans to triple the number of satellites operated by Starlink in the years ahead.On Musk’s watch, SpaceX has ramped up its pace of reusable rocket launches while working closely with NASA and the Pentagon.
The firm conducted 170 launches last year alone – up from just 27 in 2020.“SpaceX’s cost advantage is driven by its reusable launch architecture, particularly the ability to repeatedly reuse boosters, thereby significantly lowering per-launch...