Duan Yongping says SpaceX at $3 trillion would not be far-fetched

The investor said on Xueqiu on June 17 that SpaceX’s lofty valuation may be justified if it can eventually generate more than $150 billion in annual profit over the next five to 10 years.

Summary

Duan Yongping said on Xueqiu on June 17 that SpaceX’s high market valuation does not necessarily look like a bubble after he reviewed the company’s history. He said a roughly $3 trillion valuation could be reasonable if SpaceX eventually delivers annual profit of more than $150 billion, an outcome he thinks appears possible over the next five to 10 years, though he added that the case depends on the company being able to sustain that level of profit.

Terms & Concepts
  • valuation: A company’s estimated market worth.
  • bubble: A market condition in which prices rise far above levels justified by fundamentals.