On SpaceX's third-quarter earnings call, Elon Musk said reaching annual recurring revenue of $500 billion to $1 trillion by the end of 2027 was not out of the question. Hitting $1 trillion in ARR would require about $250 billion in quarterly recurring revenue by Q4, while the super intelligence (SI) segment grew 830% from $813 million to $7.56 billion in the third quarter. At 10 times sales, $1 trillion in ARR would imply a $10 trillion market cap and a share price of about $736, versus about $138 now. The author believes SpaceX will fall well short of Musk's projection, but argues that strong AI demand could keep revenue growth rapid.
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