Billionaire investor Ron Baron says SpaceX is on a trajectory to become the most valuable company in the history of human civilization, noting even his own staggering price target may dramatically underestimate where the company ultimately ends up.
In a new CNBC interview, the founder of Baron Capital says that while he’s not sure at what valuation SpaceX could debut in the public markets, he’s confident that Elon Musk’s rocket firm will soar to an astronomical market cap in a decade or so.
“This is going to become the largest company on the planet. When you go public, I don’t know if it’s going public at one and a half trillion or one and three-quarters trillion or maybe a little bit more. But where it goes public, I think that the company over the next 10 or 15 years is going to be worth $10 trillion, $20 trillion, $30 trillion. And I could be very low, could be very low, on where it’s going to be.”
Baron Capital has poured $1.7 billion into SpaceX, and the stake is now worth about $15 billion.
As to why Baron believes that SpaceX will become the most valuable company in the world, he says it’s all about its reusable rockets and data centers in space.
“He comes up with the idea that you’ll be able to launch a rocket and reuse it. And no one ever did that before. Nobody’s been able to accomplish it. So that’s what enabled this. That’s what enabled us to have Starlink…
There’s a demand for data centers in space. You don’t need cooling in space, number one, as long as you have giant radiators. And then electricity, which you don’t need in space either, because you’re using the sun. So basically, you’re getting free electricity and free cooling once you get into space. The Starship, once that works, is going to be 100 times — I guess it’s 200 tons that they could bring to space. And now the Falcon 9 brings, I think, 17 or 18 tons to space. So huge unlock is coming from Starship.”
Last month, SpaceX confidentially filed for an initial public offering (IPO) and was valued at $1.25 trillion at the time.
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