Opinion: What SpaceX investors are buying is not profit, but Musk himself

June 17 – According to a CNBC report, top investor Jim Cramer says SpaceX’s ongoing stock price surge stems not from its current profitability, but from the market betting on Elon Musk’s disruptive entrepreneurial skills. After completing its IPO last week, SpaceX’s market value quickly climbed to roughly $2.5 trillion, briefly surpassing Microsoft at one point and even topping Amazon. While the company is likely to stay unprofitable for many years, investors are willing to assign it such a high valuation thanks to Musk’s history of building industry-leading firms. “This stock is called SpaceX, but it could just as easily be called Elon Musk,” Cramer stated. “When you buy into SpaceX, you’re effectively buying Musk’s brain.” He pointed out that investors value both Musk’s proposed goal of hitting $1 trillion in annual revenue by 2030 and long-term business initiatives like Starlink satellite internet, reusable rockets, and data centers. Additionally, SpaceX announced Tuesday it would acquire AI coding startup Cursor for $60 billion in stock, further expanding its footprint in artificial intelligence and software development. Cramer compares some investors’ view of SpaceX to Warren Buffett’s Berkshire Hathaway in Buffett’s era—holding the company is a bet on an entrepreneur capable of generating value over decades. He noted that while the market still harbors doubts about SpaceX’s valuation, short sellers have faced steep costs so far.