LOS ANGELES, July 13 — For a company that has long been the darling of private space investment, SpaceX is navigating a turbulent chapter in its financial story. The rocket builder, founded by Elon Musk in 2002 and kept private ever since, saw its valuation hit a peak of $150 billion in July 2023. That came after a $750 million funding round that had investors lining up.
But the picture has shifted dramatically since then. By October 5, 2023, the stock price on secondary markets had fallen to $45 per share.
That marked a 62.5% decline from the high of $120 per share just months earlier in July. The company’s overall valuation dropped to $100 billion — a 33% decrease from its peak. Behind the numbers, the story is about competition and delays.
Analysts at Morgan Stanley had previously valued SpaceX at $200 billion in a bull case scenario, reflecting enormous optimism about the company’s future. That rosy outlook has since been tempered.
The Competition Heats Up
Much of the valuation decline is attributed to a breakthrough by Blue Origin, the space company founded by Jeff Bezos. Blue Origin’s progress has introduced a new dynamic in the commercial space race, one that had long been dominated by SpaceX’s reusable rockets and aggressive pricing. For investors watching the private markets, the shift raises questions about how long SpaceX can maintain its commanding lead.
The company’s Starship program, central to its long-term ambitions for deep space missions and satellite deployment, has faced development delays that have weighed on confidence. SpaceX’s financial fundamentals, however, remain strong by any conventional measure.
In 2022, the company reported revenue of $10 billion and net income of $1.5 billion, according to public filings. Those are real numbers from a company that has proven it can generate profit, not just hype.
A Private Giant Under Pressure
Because SpaceX is private, its shares trade on secondary markets where institutional investors and accredited individuals buy and sell stakes. That market is where the price swings have been most visible — a 62.5% drop from $120 to $45 per share is the kind of volatility typically associated with public tech stocks, not private companies. The $100 billion valuation still makes SpaceX one of the most valuable private companies in the world.
But the 33% decline from its peak represents a significant reassessment of risk by investors who had previously bid the company up to extraordinary heights. What comes next depends heavily on Starship.
If the development delays are resolved and the vehicle begins regular flights, the bull case scenario of $200 billion could come back into view. If Blue Origin continues to close the gap, the pressure will only intensify. For now, the market is watching — and waiting.
