ARK Invest, the investment management firm led by prominent investor Cathie Wood, endorsed on Monday the $1.75 trillion valuation for Elon Musk's commercial space company, SpaceX, as it prepares for an upcoming initial public offering.
ARK stated that its research indicates the valuation is reasonable. The firm pointed out that the $1.75 trillion IPO target valuation is based on plausible growth trajectories for SpaceX's core business segments, including Starlink, a potential merger with xAI, and its launch services business, all of which possess "sustainable" growth paths and "structural advantages."
ARK further expressed a bullish stance on SpaceX, praising the potential merger with xAI. "A merger with xAI adds a strategic dimension to the SpaceX platform that no other comparable public company has attempted to replicate," the firm said in a statement, also voicing support for Musk's goal of establishing orbital data centers.
"Musk's objectives are ambitious by any measure, and SpaceX has repeatedly demonstrated its ability to shorten timelines previously anticipated by skeptics," the investment company added.