Opinion: SpaceX investors are not buying profits, but Elon Musk himself

BlockBeats News, June 17 — According to CNBC, well-known investor Jim Cramer stated that the core driver behind SpaceX's continuous stock price increase is not its current profitability, but the market’s bet on Elon Musk’s ability to create disruptive companies.

Cramer said that after SpaceX completed its IPO last week, its market value quickly rose to approximately $2.5 trillion, temporarily surpassing Microsoft and exceeding Amazon. Although the company may still be in a loss-making state for many years to come, investors are willing to assign a high valuation because of Musk’s track record of building industry leaders.

Cramer stated, "This stock is called SpaceX, but it might as well be called Elon Musk. When you buy SpaceX, you’re actually buying Musk’s brain."

He pointed out that investors value not only Musk’s goal of achieving $1 trillion in annual revenue by 2030 but also long-term business plans such as Starlink satellite internet, reusable rockets, and data centers. Meanwhile, SpaceX announced on Tuesday that it would acquire AI startup Cursor with stock valued at $60 billion, further expanding its presence in artificial intelligence and software development.

Cramer believes that some investors see SpaceX as similar to Berkshire Hathaway during Warren Buffett’s era — holding a company to bet on an entrepreneur capable of creating value for decades. He said that although there are still doubts about SpaceX’s valuation in the market, so far, short sellers have faced very high costs.