Space Exploration Technologies Corp. (NASDAQ:SPCX) is barreling toward a historic $3 trillion market cap as the Elon Musk-led rocket and satellite company’s shares surged 11.84% to $215.30 apiece in premarket trading on Tuesday.
This surge has even pushed the street’s most optimistic bulls to extend their valuation justifications out to the year 2028 just to make the current numbers make sense.
The Bull Case Stretched To 2028
This explosive overnight move has increased the aerospace giant’s market valuation to a staggering $2.82 trillion, despite it being at $2.52 trillion as of Monday’s close, leapfrogging Amazon.com Inc.(NASDAQ:AMZN) to become the fifth-largest company globally.
Futurum Equities’ Shay Boloor initially labeled the blockbuster IPO a “clear success” and defended the initial valuation as “not crazy,” pointing to Starlink’s high margins and a monopoly-like launch business.
However, his bullish thesis heavily relied on SpaceX multiplying its EBITDA to $50 billion by 2028 to achieve a plausible 40x multiple.
With overnight trading tacking on an additional $300 billion to the market cap, investors are aggressively prepaying for operational milestones slated for much later in the decade.
Valuation Critics Flag ‘Absurd’ Risks
As the valuation closes in on $3 trillion, high-profile market bears are issuing stark warnings that the arithmetic has detached from reality.
Renowned short-seller Jim Chanos blasted the company’s core pitch, calling Musk's claimed $28.5 trillion total addressable market (TAM) outright “absurd.”
Financial commentator Patrick Boyle expanded on this structural skepticism on his own YouTube channel, describing the modern, asset-heavy AI capital landscape as a giant financial “pawn shop” where tech giants awkwardly pass the hat to fund massive infrastructure bills.
Boyle also cautioned that aggressive broker lockups expose retail investors to a “raw deal,” trapping them in the room to hold the price steady until passive index funds are legally required to start buying.
SPCX Nears $3 Trillion M-Cap
The SPCX stock has been advancing since its debut when it opened at $150 apiece on Friday, representing an 11.1% premium to the IPO price of $135.
As of Monday, it closed 19.60% higher at $192.50.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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