SpaceX and Tesla Inc. (NASDAQ:TSLA) CEO Elon Musk hailed investor Ron Baron after the latter predicted that SpaceX could go on to become the most profitable and valuable company of all time ahead of its anticipated IPO.
SpaceX To $30 Trillion?
In a post on the social media platform X on Saturday, influencer Nic Cruz Patane posted a clip of Baron outlining his thoughts on SpaceX, which would become the “largest, most profitable company on the planet,” according to the investor.
Baron said that SpaceX, which will initially be valued at “less than $2 trillion,” would go on to become worth “$10 trillion, $20 trillion or $30 trillion.” He added that SpaceX officials, despite the high valuation, thought that Baron was “lowballing it [the valuation].”
Musk, in a response to Patane’s post, heaped praise for Baron. “Ron is smart,” the billionaire Tesla CEO said in the post amid criticism of the company’s valuation, with Morningstar valuing SpaceX at $780 billion, approximately half of the touted $1.75 trillion valuation.
Dean Of Valuation Avoids SpaceX IPO
Talks of SpaceX’s valuation have been rife, with NYU Stern professor Aswath Damodaran, who is regarded as a top-tier expert on valuations, saying that he would be avoiding the IPO, citing concerns about the $28.5 trillion total addressable market (TAM) listed in the company’s IPO prospectus, among other reasons.
S&P 500 Drops Rule Change Plan
In what could be a setback, the S&P 500 index, operated by the S&P Dow Jones Indices, said that it would not be adopting rule changes that would have allowed SpaceX an expedited entry into the index.
The proposed rule changes sought to change profitability and free float requirements, as well as proposed trimming the stipulated 12-month period before public companies can be listed on the index.
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