From Starlink to asteroid mining, SpaceX is selling a vision that extends far beyond launch services.
The moment many investors have been waiting years for has finally arrived: SpaceX has filed to go public.
For many retail investors, this will be the first opportunity to directly own a piece of one of the most ambitious companies ever created. And because SpaceX is closely associated with Elon Musk, excitement around the IPO is already reaching fever pitch.
But before getting swept up in the hype, there are three questions investors should ask:
How does SpaceX make money? Do they actually make money? And does profitability even matter?
The first question is relatively straightforward. SpaceX generates revenue through launch services, government contracts, satellite deployments, and its rapidly growing Starlink internet business. However, the bigger story is what the company could enable in the future.
If SpaceX succeeds in dramatically reducing the cost of accessing space, it could unlock entirely new industries. We’re talking about satellite-based internet connectivity, manufacturing and data centers in orbit, asteroid mining, and even long-distance commercial travel that could one day compete with traditional air transportation. Some of these opportunities would be delivered directly to consumers through products like Starlink, while others would be enabled through partnerships with governments and enterprises.
The more difficult question is whether SpaceX actually makes money.
According to its IPO prospectus, the company has generated significant revenue but has also accumulated approximately $37 billion in losses since inception. Most recently, SpaceX reported a quarterly net loss of roughly $4.3 billion while revenue growth slowed to approximately 15% year-over-year.
Viewed through a traditional value-investing lens, those numbers are difficult to ignore. Investors trained to focus on earnings, cash flow, and profitability may see plenty of reasons for caution. Compared to companies like Nvidia, which recently reported revenue growth of roughly 85%, SpaceX’s financial profile appears far less compelling.
Which leads to the final question: does it matter?
Historically, the answer would have been yes. Investors like Warren Buffett built their careers around the idea that fundamentals ultimately determine value. Yet recent market history suggests the equation may be changing.
Tesla spent years defying conventional valuation metrics while investors focused on its future potential rather than near-term profitability. SpaceX may find itself in a similar position. For many investors, the opportunity isn’t about current earnings—it’s about the possibility of participating in the creation of an entirely new space economy.
Whether that’s enough to justify the valuation remains to be seen. But one thing is certain: this IPO is about much more than rockets.