SpaceX’s Soaring Value: Fidelity’s Stake Tops $2.7 Billion

spacex

According to BI, the valuation of SpaceX, Elon Musk’s pioneering space company, has seen a dramatic surge, as evidenced by the recent adjustments made by Fidelity Investments. Holding a diverse array of SpaceX shares across its funds, Fidelity has now pegged its stake in the company at an impressive $2.7 billion, according to a December report published in late January. This valuation places SpaceX as the 11th largest holding in Fidelity’s Contrafund, surpassing established giants like Visa (V), JPMorgan (JPM), and Broadcom (AVGO), with Series G shares alone ranking as the 23rd largest holding in this fund.

Fidelity’s initial investment in SpaceX came during the 2015 Series G funding round when the company was valued at $12 billion. At that time, the Contrafund acquired 558,215 shares for $43.2 million. By the end of December 2024, the valuation of these shares had skyrocketed to more than $1,032 billion, illustrating a return of nearly 2,290% over a decade. This significant increase in share value reflects not only SpaceX’s growth but also the market’s increasing confidence in its business model and future prospects.

The current valuation by Fidelity suggests, as per BI, that SpaceX could now be worth over $286 billion, a figure that exceeds the market capitalization of several major companies like Palantir Technologies Inc. (PLTR), Chevron Corporation (CVX), Merck & Company (MRK), and ServiceNow Inc. (NOW). This valuation comes in the context of SpaceX reaching a $350 billion valuation in December 2024 after a secondary share sale, further solidifying its position as a leading private company in terms of market value.

This financial upswing for SpaceX coincides with a banner year for Elon Musk, who not only supported Donald Trump’s re-election but also assumed a leadership role in the Trump administration. Additionally, Musk’s social media platform, X, has been instrumental, providing valuable data for his AI venture, xAI, which managed to secure $6 billion in Series C funding in December 2024.

Fidelity’s valuation adjustments over the year show a consistent upward trend in the perceived value of SpaceX. From valuing the Series G shares at $541.5 million in December 2023 to a 15.5% increase to $625 million by June 2024, and then a further 65% jump to more than $1,032 billion by the end of the year, these figures reflect a 91% year-over-year increase. This growth in valuation is not just a testament to SpaceX’s operational successes, including its advances in reusable rocket technology and the expansion of its Starlink satellite internet service, but also to the broader market’s optimism about the future of space exploration and commercialization.

The implications of this soaring valuation go beyond mere numbers; it underscores the investor confidence in SpaceX’s potential to revolutionize space travel, satellite communication, and possibly even human settlement in space. As SpaceX continues to achieve milestones in its mission to make life multiplanetary, the financial backing from investors like Fidelity will likely keep growing, reflecting both the company’s innovative strides and the increasing economic importance of space technology.

WallStreetPit does not provide investment advice. All rights reserved.

Be the first to comment

Leave a Reply

Your email address will not be published.


*

This site uses Akismet to reduce spam. Learn how your comment data is processed.