Why SpaceX is Elon Musk’s most valuable company

Elon Musk is known for running several groundbreaking companies, from Tesla’s electric cars to Neuralink’s brain-computer interface.

Many assume that Tesla, with its global recognition and market presence, must be Musk’s most valuable company. 

Yet, the reality is quite different. The true giant in Musk’s empire is SpaceX. With a valuation touching nearly $400 billion in mid-2025, SpaceX outpaces every other Musk-led venture in terms of market worth and growth potential.

This article explores why SpaceX holds the crown as Musk’s most valuable company.

SpaceX: Why was it founded?

Founded in 2002 with $100 million Musk earned from selling PayPal, Space Exploration Technologies Corp. (SpaceX) was built with one audacious mission: to make humanity multi-planetary.

At the time, commercial space travel was dominated by established giants like Boeing and Lockheed Martin.

But Musk pushed ahead, focusing on lowering launch costs through reusable rockets. 

The Falcon 1 initially struggled, with three failed launches nearly bankrupting the company.

However, salvation came in 2008 when NASA awarded SpaceX a $1.6 billion contract for International Space Station (ISS) resupply missions, a lifeline that kept the company afloat.

Reusable rockets and market domination

The Falcon 9 rocket, introduced in 2010, revolutionised space travel by proving rockets could be reused safely, slashing launch costs to about $60–70 million per mission.

This allowed SpaceX to dominate the commercial satellite launch market, undercutting competitors and winning clients from governments, telecoms, and private firms worldwide.

By 2024, SpaceX had completed 134 launches in a single year, more than any government space agency.

The aerospace company is targeting up to 170 in 2025, an unprecedented number.

Its reliability and cost-efficiency have made it the go-to provider for NASA, the Department of Defense, and private satellite operators.

Starlink: The billion-dollar internet service

Beyond launches, SpaceX’s Starlink satellite internet service has emerged as a major revolution. 

With over 6,000 satellites in orbit and more than 5 million subscribers worldwide, Starlink generates about $5 billion annually in subscription revenue.

From Ukraine to rural America, Starlink has been deployed in conflict zones and underserved regions, proving its strategic importance.

Musk has hinted that Starlink could go public once cash flows stabilise, potentially unlocking even greater value.

Starship: Musk’s gateway to Mars

While Falcon 9 handles today’s missions, Musk’s real gamble is Starship, the largest rocket ever built.

Designed for deep space missions, including Mars colonisation, Starship can carry over 100 tons of cargo and be fully reusable.

Each launch currently costs around $100 million, but Musk aims to reduce it to $10 million, a game-changer for interplanetary exploration.

Notably, NASA has already invested, awarding SpaceX a $3 billion contract to use Starship for lunar missions under the Artemis programme.

If successful, Starship could make Musk’s dream of human settlements on Mars achievable.

Government contracts: The support behind SpaceX

Despite its innovations, SpaceX’s rise wasn’t fueled by private money alone. US taxpayers have heavily supported its growth, with government contracts worth nearly $20 billion.

Today, the Pentagon and NASA remain key clients, providing billions in funding for satellite launches, national security payloads, and lunar exploration.

It is worth mentioning that in June, when the US President Donald Trump’s relationship with Musk collapsed spectacularly, former Trump adviser Steve Bannon called for him to use the Defense Production Act to take over SpaceX.

That said, the US government continues to provide funding to SpaceX.