SpaceX, Elon Musk’s rocket-launching company, has reportedly achieved profitability in the first quarter of this year after facing losses in the past two years. Although the company keeps its financial information private, documents obtained by The Wall Street Journal reveal that SpaceX made a $55 million profit on $1.5 billion in revenue during this period. This positive financial performance is a significant milestone for the company, which is valued at approximately $150 billion, on par with industry giants like Intel and Disney.
To maintain its private status, SpaceX has relied on substantial capital injections. In 2022, the company raised $2 billion from stock issuance, surpassing the $1.5 billion it raised in 2021. Investors who purchased SpaceX stock perceive their investments as long-term bets, prioritizing the company’s vision and growth potential over short-term losses.
Although SpaceX doubled its revenue to $4.6 billion in 2022, it still reported a loss of $559 million due to total expenses of $5.2 billion. However, this performance represents an improvement from the previous year when SpaceX recorded a loss of $968 million, driven by $3.3 billion in expenses.
Most of SpaceX’s expenses are associated with the development of Starship, a reusable heavy-lift launch rocket with a price tag of $3 billion. Elon Musk envisions Starship as the future of interplanetary transportation, capable of carrying humans and cargo to destinations like the moon and Mars. Consequently, SpaceX has allocated a significant portion of its budget towards Starship’s development, with $5.4 billion spent on property and equipment between 2021 and 2022.
However, SpaceX faced a setback in April when a Starship spacecraft exploded during an unmanned test flight in South Texas, failing to reach its intended altitude of at least 90 miles above Earth’s surface. Despite this setback, government regulators have not granted SpaceX approval for another test flight.
In terms of expenditures, SpaceX allocated $3.1 billion towards salaries, materials, and spacecraft depreciation in the previous year. Additionally, the company increased its research and development spending by 11% to $1.3 billion compared to 2021.
The Post has reached out to SpaceX for comment on these developments.
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