Ron Baron, founder of Baron Capital, said recently that SpaceX could reach a valuation of $4 trillion within the next 10 to 15 years, offering another aggressive long-term forecast for the Elon Musk-founded space company.
Baron has backed SpaceX for years. He previously said the company could generate valuation growth of $10 trillion to $30 trillion over the next 10 to 15 years, and argued that SpaceX has a chance to become one of the largest companies in the world.
Baron’s case for SpaceX
His bullish view is tied mainly to three areas: Starlink’s satellite internet business, reusable rocket technology, and the future market for space infrastructure.
Baron said growing global demand for internet connectivity, together with expanding AI computing demand, could open a new long-term growth path for the space economy.
Baron Capital has held SpaceX since 2017
Baron Capital has already built a large position in SpaceX. The firm began investing in the company in 2017 and said those investments have produced substantial returns.
Baron has also said the value of SpaceX in his portfolios has become an important component of his funds, and that the company could still have long-term growth potential after a future listing.
What could stand in the way
Even so, market participants cited several challenges that could complicate any path to a multi-trillion-dollar valuation.
- The speed of Starlink commercialization
- Rocket launch costs
- The company’s ability to execute on new businesses such as space data centers
- Execution risk tied to a high valuation
TheStreet said SpaceX’s long-term valuation outlook is becoming a point of focus in capital markets. Supporters see the company shifting from a traditional aerospace business toward a platform combining satellite communications, AI infrastructure, and the broader space economy.