economy
How SpaceX's galaxy math adds up
Elon Musk's company says its potential market is $28.5 trillion — only slightly less than U.S. gross domestic product.
TL;DR
- SpaceX claims a total addressable market (TAM) of $28.5 trillion, according to its prospectus.
- The bulk of this market value, $26.5 trillion, is attributed to SpaceX's AI business.
- This figure excludes potential revenue from colonizing Mars and does not include Russia and China.
- Economists, like Ryan Cummings, have criticized the estimate as 'farcical' and wildly ambitious.
- The estimate is considered optimistic and imprecise, with Elon Musk known for making large numerical claims.
- Previous companies like Uber and WeWork also made criticized TAM estimates in their IPO filings.
- SpaceX believes space is the largest economic frontier and aims to create new markets through its innovations in space, AI, and connectivity (Starlink).