Riiight. Elon Claims SpaceX Revenue to Hit $1T by 2030

**John Johnston** (0:00)
Our internal projections for the reaching a trillion dollars in revenue have moved up from 2031 to 2030s, and there's a non-zero chance that it could be 2029
Sure, Elon, sure. Now, at some points in the earnings score, you say, this sounds like fantasy sci-fi, and yes, it does, Elon, it does. Hi, everyone, JJ here. Welcome back to the lounge. Well, SpaceX earnings were today. I've already done one video on it today, but Elon Musk made some grand claims as always, and needless to say, I'm pretty sceptical. Honestly, I don't know why people believe this guy anymore after so many predictions that he's made that haven't come true, but SpaceX, really, we could say at this point, is a broken IPO, so he's a bit desperate, I think, in terms of what to claim. But here, The Wall Street Journal says, SpaceX revenue could reach one trillion, Elon Musk says first quarterly earnings report since IPO shows surge in revenue and the tab for capital expenditures. You're supposed to say capital expenditures went up, and that might be part of the reason for the stock dumping after hours, it was after the bail of the earnings, it went down 7.46%, was down over 8% at one point. By the time you see this, maybe we've gone up, maybe it's gone down more, I don't know. We'll have to see what happens. You just never know with these things. But Elon Musk is making some grand claims. Could be part of the reason for it too, that people just don't believe him. If you see this from TechCrunch, Elon Musk repeatedly one-upped his execs on SpaceX's first earnings call. So the other executives really talking about the business, having their feet on the ground, so to speak, and Elon going for Mars, going for space. In terms of his claims about the future, the sci-fi future, at some points in the earnings call, so this is sounds like fantasy sci-fi, and yes, it does, Elon, it does. But let's get into this first and then we'll have a look at that article. Elon Musk on Tuesday outlined ambitious targets for SpaceX, including launching data centers in space in 2027 He also says, my prediction is sometimes late, often late, but they do happen. That's not even true. If you look at the predictions that he's made for Tesla over the years, a lot of them haven't come true. It's just not true. I mean, how late do they have to be? It's like going on 10 years for full self-driving and robotaxi.
So reaching one trillion in revenue as part of his first address to investors since the company's initial public offering. So it's not just that. I listened to the call. He said, I think it's going to happen one trillion by 2030 And then he also added maybe even 2029, which is not far away, one trillion in revenue just by that. I mean, come on, who is actually going to believe that? So none of the analysts on the call questioned that. They're all, you know, just all thanks for taking the call and no difficult questions. But they don't let them answer back actually. They cut them off as well. Statement from the billionaire entrepreneur and SpaceX chief executive followed an earnings report that showed sharp growth in revenue across its three business lines. Space, connectivity and artificial intelligence. And so the TAM, the Total Addressable Market is mostly artificial intelligence. So the numbers still look very small compared to, well, even the market cap now and what Elon's touting is trillion-dollar revenue by 2030 Revenue for the world's biggest rocket launcher and satellite internet provider in the second quarter. Total 7.8 billion, up 92 percent from the same period last year, which is good that it's got revenue going up. Not profitable, of course, which is another problem for over a trillion-dollar company. And a 24-year-old company as well. This is not just a startup.
This is quite an old company now. And while the company posted narrower losses in the most recent period, heavy capital spending weighed on its operations. Capital expenditures hit 18.4 billion for the quarter, up from 2.8 billion. So as I said in that last video, the first video of it today about this, you know, that's a big capital expenditure upgrade, and maybe that's part of the reasons for the stock dumping as well. So that's a huge increase. Now, are they going to get a return on that? You know, this, as I've said, the AI bubble, there's bigger and bigger questions about whether some of this is going to be recouped, all this investment, especially with OpenAI and Anthropic, which is linked in circular financing manner to Nvidia and other companies. And SpaceX is definitely involved in this because they, you know, a big part of the TAM, the Total Addressable Market, is said to be AI.