Elon Musk on Tuesday said that Space Exploration Technologies Corp.’s (NASDAQ:SPCX) in-house forecast for hitting $1 trillion in annual revenue has been pulled forward to 2030 from 2031.
$1 Trillion by 2030 or Earlier
That new timetable lands as second-quarter revenue of $7.81 billion, up 92% year-over-year, pointing to a faster growth curve than many investors expected.
"It’s probably also worth mentioning that our internal projections for reaching $1 trillion in revenue, not ARR, but revenue, have moved up from 2031 to 2030," Musk said during the call.
The SpaceX CEO also said that the milestone could also be reached earlier.
"There’s a non-zero chance of that being in 2029," Musk added.
The company also anticipates reaching over $100 billion in annual recurring revenue (ARR) by December of this year.
Starlink Performs Well
The latest quarter offered a snapshot of the scale Musk is pointing to, with revenue topping a $6.93 billion Street consensus estimate tracked by Benzinga Pro. SpaceX also posted a loss of nine cents per share, which was narrower than the 24-cent loss analysts had pencilled in.
Management tied the quarter’s momentum to operational throughput, citing 78 launches so far this year and Starlink coverage spanning 167 countries. SpaceX also said Starlink’s subscriber base doubled from a year earlier to 12 million.
SpaceX pointed to contracted sales of $14.1 billion in cloud service agreements. The company also highlighted two successful Starship V3 flight tests over the past 90 days.
Investors Back SpaceX
Investor confidence in SpaceX remains strong, as evidenced by Ron Baron‘s prediction that SpaceX could become the world’s largest company, potentially reaching a valuation between $20 trillion and $40 trillion.
However, the road to $1 trillion is not without challenges. SpaceX’s stock has experienced volatility, declining over 50% from its post-IPO high.
Price Action
SpaceX shares surged 9.43% to $125.33 on Tuesday. The company’s shares declined over 7.5% in overnight trading.
Benzinga Edge Rankings show SpaceX fails to provide a favorable price trend in the short, medium and long term.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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