SpaceX Might Go Public in 2027 Hints One Of Its Biggest Investors, Ron Baron

Ahead of the fourth Starship test flight that will see SpaceX launch the world's biggest rocket for the fourth time in Texas, billionaire investor Ron Baron has shared his take on when the firm might go public. SpaceX is one of the most valuable companies in the world, and over the course of the years, multiple rumors and reports have speculated about a potential initial public offering of its share. SpaceX chief Elon Musk has insisted multiple times that an IPO is risky as public companies are subject to extreme share price swings.

According to Baron, his firm, Baron Capital can double its investment in SpaceX after the firm goes public in 2027 and add on to these gains later as well. He made the comments during CNBC's Squawk Box early morning today, adding that one of the biggest reasons for SpaceX's success is its ability to reduce launch costs.

SpaceX Can Quadruple In The Next Couple Of Years According To Billionaire Ron Baron

Baron has invested a billion dollars in SpaceX since 2017 that is now worth "two billion three" according to his latest statements. He believes that the SpaceX investment will only grow in the future, with the hope that "we're going to make a double in 2027 when they go public," and then double the investment once again by 2030.

According to Baron, the primary driver of SpaceX's valuation growth is the firm's ability to significantly reduce the costs of space exploration by heavily reusing its rockets. SpaceX's Falcon 9 is nearing the two dozen flight per booster mark, and in 2024, the firm has picked up its launch cadence by relying on the refurbished boosters to launch its Starlink internet satellites.

"It's $20 million [inaudible] right now, it's about to cost us $6 million to get to space. It costs other people a hundred, two hundred million dollars," elaborated Baron.

Baron is also quite optimistic about SpaceX's Starlink satellite internet constellation. Previous rumors about a SpaceX IPO have speculated that the firm might spin off its Starlink division for a public offering while the parent and the rocket launch provider, SpaceX, remains privately held.

Speaking of Starlink, it also sits at the heart of Baron's estimate of SpaceX quadrupling its total valuation in the next couple of years. He shared that big ticket investment banks such as Goldman Sachs and Morgan Stanley believe that Starlink can play in a $1.2 trillion market, out of which SpaceX (or "Elon") believes that it can capture half over the next fifteen years.

Satellite internet is the perfect road to wealth creation, according to the billionaire investor, since it provides low cost education to anyone with a connection. 30% of the world's population is bereft of internet access, and to quadruple SpaceX's market value by 2030, it will have to serve 50 million customers for $60 billion in revenue estimates Baron. Right now, SpaceX is growing between 30% to 40% annually, with $12 billion in revenue, $5 billion in cash, no debt and growth. He believes that once the firm's financials become freely available, more people will become excited by the prospect of investing in SpaceX.

SpaceX's Starship sits at the heart of its future Starlink plans, as larger satellites require bigger rockets to maintain an adequate build out rate. Starship's latest test featured its satellite dispensing system designed specifically for Starlink, and future tests will see the rocket evaluate capabilities to work with NASA for the multi billion dollar Artemis lunar exploration program.

About the author: Ramish is a seasoned technology writer and editor with more than a decade of experience. He specializes in semiconductor fabrication and market analysis. With a background in finance and supply chain management - via his bachelors in Finance and a micromasters in supply chain management from MIT - Ramish combines financial rigor with deep industry insight to deliver accurate and authoritative coverage.

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