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PE Updates: SpaceX Valuation Soars to $350 Billion, Becoming the Most Valuable Startup in the World

We are thrilled to report that SpaceX has reached a staggering valuation of $350 billion following an agreement to purchase $1.25 billion of internal stock. This internal buyout, priced at $185 per share, marks a significant increase from the previous valuation of $112 just three months ago, solidifying SpaceX's position as the most valuable startup globally, surpassing ByteDance.

The recent valuation surge reflects the substantial confidence investors have in SpaceX, especially as the company continues to excel as a premier rocket launch provider. Partnering with NASA, the Pentagon, and various commercial clients, SpaceX has been instrumental in launching satellites, transporting cargo and personnel to space, and expanding its Starlink satellite network to provide internet services.

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Starlink Covers 114 Countries with 5 Million Users

A report from Fortune magazine highlights that Starlink has significantly contributed to the increased valuation of SpaceX. The user base of Starlink is growing rapidly, currently spanning 114 countries with about 5 million users, a doubling compared to last year. Starlink provides high-speed internet services to remote and underserved areas, driving this rapid expansion.

According to a report released in May by research firm Quilty Space, Starlink is expected to generate $6.6 billion in hardware and subscriber revenue in 2024, with EBITDA earnings reaching $3.8 billion.

Starlink’s services are expanding into corporate markets, including aviation and maritime, further diversifying revenue sources and posing challenges to competitors. With lower latency and greater bandwidth, Starlink is attracting more customers, forcing other satellite operators to innovate or risk being eliminated.

Starlink Has 7,500 Second-Generation Satellites in Low Earth Orbit

Additionally, the U.S. Federal Communications Commission (FCC) recently approved Starlink to operate directly connected to the small cell (DTC) on 7,500 second-generation satellites, laying the groundwork for commercial-scale DTC services in early 2025 in partnership with T-Mobile and others.

Currently, SpaceX operates the largest number of Starlink satellites in low Earth orbit, accounting for two-thirds of all operational satellites globally, confirming Starlink's dominance in the satellite market.

Looking ahead, it is expected that by 2035, the space economy will grow to $1.8 trillion, and with another round of funding set to launch, SpaceX is well-prepared to secure a significant position in this wave of expansion. SpaceX's success is primarily attributed to its unparalleled technology, vertical integration strategy, and diversified revenue sources, especially through its satellite internet service, Starlink.

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Musk Becomes the Biggest Beneficiary of the "Trump Deal"

The rapid increase in SpaceX's valuation can be seen as part of the "Trump Deal." Following Trump's victory in last month's presidential election, U.S. stocks and assets like Bitcoin surged, as investors believe these assets will benefit from Trump’s second term.

With strong support provided during the election, Musk has gained Trump's trust and will lead the "Department of Government Efficiency" (DOGE) that Trump plans to establish.According to documents released last week by the Federal Election Commission, Musk donated $259 million to groups supporting Trump's 2024 campaign, making him one of the largest presidential campaign donors in U.S. history.

In addition to SpaceX, Musk's AI startup xAI has also seen a recent surge in valuation. Reports indicate that xAI has completed a new round of funding, with its latest valuation surpassing $40 billion, nearly double that of six months ago. Meanwhile, since November 5, Tesla's stock price has surged nearly 40%, bringing its market capitalization to $1.29 trillion (as of Wednesday’s close).

According to the Bloomberg Billionaires Index, Musk's net worth has reached approximately $384 billion, leading second-place Jeff Bezos by $140 billion. The $140 billion could even rank as the 11th richest person in the world, surpassing NVIDIA CEO Jensen Huang.

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We extend our heartfelt congratulations to SpaceX on this extraordinary achievement. As investors, we are proud to support SpaceX's groundbreaking innovations in space exploration and technology. Our investment philosophy emphasizes identifying transformative companies that lead their industries, and SpaceX exemplifies this vision. We look forward to witnessing their continued success and the positive impact they will make in the space economy and beyond.

Reference: Bloomberg, Yahoo Finance, CNBC