Cathie Wood, founder of ARK Invest, stayed unusually quiet in her daily trading activity on April 21. While her ETFs saw no major buying or selling activity that day, ARK released a report backing a massive $1.75 trillion valuation for billionaire Elon Musk’s SpaceX.
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Wood believes SpaceX is more than a rocket company. She sees the firm as a key player in building the future space economy.
The report highlights three main drivers behind this valuation. First, Starlink has become a strong revenue engine, with over 10 million users and is expected to generate more than $20 billion this year. Second, SpaceX has sharply reduced launch costs—down about 95% since 2008—thanks to reusable rockets. This has made access to space far cheaper and more frequent.
Third, ARK points to what it calls the “orbital economy.” This includes future opportunities like space-based data centers and manufacturing, where SpaceX could play a central role.
SpaceX Expands into AI Software
Adding to its technology push, SpaceX has secured an option to acquire AI coding startup Cursor for $60 billion. The company plans to combine Cursor’s tools with its “Colossus” supercomputer to build advanced software models.
This move shows SpaceX is pushing deeper into AI, aiming to compete with leaders like OpenAI.
IPO Plans Draw Investor Attention
The report comes as SpaceX is reportedly preparing for a potential IPO on the NASDAQ in June 2026. The company is aiming to raise around $75 billion, which could make it the largest IPO ever.
In a notable move, reports suggest SpaceX may reserve about 30% of its shares for retail investors, giving broader public access to the listing.
By backing the $1.75 trillion valuation, Wood is signaling that SpaceX could become a key infrastructure player over the next decade.
Is Tesla Stock a Buy?
Interestingly, the SpaceX IPO is not just a space story—it is also a Tesla (TSLA) story, and investors are watching closely. Any major development at SpaceX could impact Tesla’s stock performance, investor sentiment, and the broader EV and tech sectors.
On Wall Street, TSLA stock has received a Hold consensus rating, with 13 Buys, 11 Holds, and seven Sells assigned in the last three months. The average price target for Tesla shares is $395.31, suggesting a potential upside of 3.69% from the current level.
