Famous investor: SpaceX (SPCX.US) may be worth $50 trillion within ten years, Musk says "You're still underestimating it!"

According to Zhitong Financial APP, billionaire investor Ron Baron, who has been in the investment industry for 56 years, believes that SpaceX (SPCX.US) could reach a valuation of $50 trillion over the next decade, representing a nearly 25-fold increase from its current valuation. He also mentioned that SpaceX CEO Elon Musk told him this prediction may still be conservative.

SpaceX fell more than 4% on Tuesday, marking its worst single-day performance in over two months, and is down 3% so far this year.

Baron’s $50 Trillion Valuation for SpaceX: More Than Just Starlink

In a recent interview, Baron stated: “Ten years from now, I think the stock price will be in the thousands of dollars. I believe its valuation will be $20, $30, or even $50 trillion. Elon thinks I am underestimating it.” He said he had “never seen” a company like SpaceX, whose potential far exceeds just rockets.

He sees Starlink as the main source of future value. “Starlink alone could be worth approximately $14 to $15 trillion over the next decade.” In an August interview, Baron gave a more detailed forecast: Starlink’s annual revenue could grow from $15 to $17 billion, reaching $1 trillion within ten years, with annual profits between $700 and $800 billion.

Baron also sees even bigger opportunities in orbital data centers. “Data centers in space—my god, that’s just incredible.” He added that these facilities can avoid limitations on Earth like electricity, water, and permits, and their eventual value could be multiples of Starlink’s.

Morgan Stanley analyst Adam Jonas also emphasized SpaceX’s ambitions in computing. In notes shared on X by investor Sawyer Merritt, Jonas listed the “distributed inference cloud” as the company’s most overlooked growth opportunity. He indicated that the expansion of physical AI system networks could drive much greater computing power demands, and he expects investors to focus more on this theme in the coming year.

SpaceX’s Focus on Ship 40 Heat Shield and Engine Data

Baron’s investment thesis also relies on SpaceX lowering the cost to reach orbit. He previously stated that Starship could eventually drop launch costs from about $1,500 per kilogram to $150 per kilogram, giving the company a “huge advantage.”

SpaceX has now transported the Starship upper stage Ship 40, which flew for its 13th mission, back to Starbase. The vehicle survived a splashdown in the Indian Ocean and was brought to Texas. The company said this vehicle will provide “groundbreaking data” on its heat shield, Raptor engines, avionics, and other systems after flight.

Baron also mentioned in the interview that his company has invested about $2.5 billion in SpaceX since 2017, holding a 1.25% stake in the company. As of June, this holding was worth about $25 billion. In August, he said Baron Capital hopes to invest another $1 billion and expects to earn “hundreds of billions of dollars” from its SpaceX shares.

Baron First Principles ETF (RONB.US) offers investors exposure to Baron’s SpaceX bets. As of Monday, the fund held 905,118 shares of SpaceX, making it its largest position at about 41% of assets. Baron First Principles ETF is down nearly 1% year to date, while SPDR S&P 500 ETF Trust (SPY.US) is up 15%, and Invesco QQQ Trust (QQQ.US) is up 21% over the same period.

His advice to friends is to keep buying. “You should buy some SpaceX, and then keep buying every month.” He said even if investors wake up worried about taking on too much risk, they should continue to buy.

However, in August he said: “I have absolutely no idea what price this stock will sell for in the short term.” He also mentioned that after the lockup period, about 270 million SpaceX shares were shorted, while more than 911 million shares held by early investors are now eligible for sale.

His confidence partly comes from his previous bets on Musk. Baron said his company invested $400 million in Tesla between 2014 and 2016 and has since earned about $7.7 billion. He expects this investment to grow fivefold again over the next 10 to 15 years.

On Stocktwits, SpaceX retail sentiment has dropped from bullish last week to bearish, and message volume remains high. However, sentiment for the Baron First Principles ETF is better, holding neutral and recovering from bearish just a day earlier, though retail attention has dropped over the past three months with more than a 10% decline in followers.

One user commented: “Personally, I think we are just at the start of a major correction. I want to see $125 tested again before considering opening a position.”

Another user remarked: “Can you imagine SpaceX hitting $2,000 by 2030? My $60,000 would be worth over $700,000, haha.”