October 26, 2020
Elon Musk is sitting in another gold mine if Morgan Stanley’s assessment is almost accurate.
The bank – in a best case assessment – says Musk’s SpaceX rocket business and its satellite subsidiary Starlink is worth $ 100 billion. This is undoubtedly good news for Musk, not only in the main assessment, but that the deal is worth twice what Morgan Stanley suggested it could be worth in July, which was a mere $ 52 billion.
In fact, if the bank’s “right theory”, its maximum estimate, is accurate, the value of the rocket business could be over $ 200 million.
Morgan Stanley analyzes its assessment, saying the pieces are coming together for SpaceX to create an economic and technological steering wheel, although it needs hundreds of millions of additional investments.
The bank says SpaceX’s launch business alone is worth $ 12 billion. Your space travel business could be worth another $ 9 billion. The big winner, in the bank’s opinion, is Musk’s Starlink broadband system, where the bank doubled its valuation from $ 42 billion earlier this year to the current $ 81 billion.
Morgan Stanley suggests that by 2040 Starlink may have 364 million subscribers worldwide.
If that’s the upside, the downside is the cost of reaching that type of subscriber number, which, according to the bank’s report, could cost $ 240 billion.
Investor Forbes magazine reports that Chad Anderson, an existing investor in SpaceX through Anderson’s Space Angels business, says that Starlink can earn $ 30- $ 50 billion a year.