April 2025
Article
4 minutes
Top 10 Private Companies Progress Report: SpaceX
Claire Shaw – Portfolio Director
SpaceX is pioneering the space industry. It operates in two significant markets where it holds a dominant position: rocket launches and satellite internet (via Starlink).
SpaceX is the leading player in the rocket launch market, with a ‘de facto’ monopoly due to its high launch frequency and cost advantages from reusable rockets.
SpaceX’s strategic partnerships with government agencies, competitive pricing dynamics and continual innovation provide a high barrier to entry in this industry. Starlink is essentially rebuilding the internet in outer space by establishing its satellite constellation for global internet connection.
They have a very strong competitive advantage having established early market leadership since 2020 by launching more low-Earth orbit (LEO) satellites than all competitors combined. Vertical integration is crucial for Starlink’s success as SpaceX’s reusable rockets, significantly lower launch costs compared to competitors.
Key Facts
Operational Highlights
- SpaceX made a record-breaking number of launches in 2024, successfully completing 138 trips to orbit (a 40% increase on 2023), which accounted for more than half of all global launches.
- Starship also made huge progress with four test flights achieved. The most notable development was achieving the first return and catch of the Super Heavy booster in the now infamous “chopsticks manoeuvre”. In 2025, the company aims to launch 25 Starship test flights.
- SpaceX’s satellite internet service – Starlink – expanded rapidly during the past 12 months, doubling the number of users year on year to 5 million subscribers. There are now over 7,000 satellites providing access across 100 countries.
- Commercial adoption of Starlink has also been prolific with at least eight airlines (including Air France, United Airlines and Qatar Airway) announcing they had either adopted or planned to adopt Starlink Aviation.
Financial Highlights
- In December 2024, a share tender offer to employees from SpaceX and some of its investors, valued the company at $350bn, making it the most highly valued private company in the world.
- Regarding the firm’s profitability and cash flow, SpaceX President Gwynne Shotwell mentioned that Starlink achieved breakeven cash flow in late 2023 and would make “some money” in 2024, indicating that Starlink transitioned from losses to profitability during this period.
EV: Equity Values: the value of a company available to its shareholders. Shown throughout as at 31 December 2024. Logos courtesy of relevant companies. US Dollar.
Risk Factors
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The trust invests in overseas securities. Changes in the rates of exchange may also cause the value of your investment (and any income it may pay) to go down or up.
About the author - Claire Shaw
Portfolio Director
Claire Shaw is a portfolio director and plays a prominent role in servicing Scottish Mortgage’s UK shareholder base. Before joining in 2019, she spent over a decade as a fund manager with a focus on managing European equity portfolios for a global client base. With a background in analysing companies and communicating investment ideas, Claire is also responsible for creating engaging content that makes the Scottish Mortgage portfolio accessible to all its shareholders. Beyond that, she works closely with the managers, meeting with portfolio companies and conducting in-depth portfolio discussions with shareholders.
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