SpaceX Shares Surge as Elon Musk Makes Huge Revenue Prediction. Is the Stock Still a Buy?
2026-10-24 10:25
•Geoffrey Seiler •The Motley Fool
•••••• • Axe Cap view
SpaceX’s Bold Revenue Call: Worth Buying Now?
SpaceX’s 161% revenue jump is impressive, but South African investors should tread carefully.
SpaceX reported explosive growth in Q3, with revenues leaping 161% to $14.6 billion and AI-related income doubling, pushing Musk’s revenue target as high as $1 trillion by 2027. For investors watching from South Africa, this is a headline grabber but not a straightforward buy. SpaceX isn’t yet listed on the JSE, and its fortunes hinge heavily on successful Starship launches—something Musk has overpromised on before. If Starship flops or global AI infrastructure gets oversupplied, the hype could unravel. Meanwhile, the rand tends to weaken when global tech optimism spikes, making USD/ZAR a good hedge or proxy play. Local tech counters like Naspers and Prosus have AI exposure but can’t replicate SpaceX’s scale or risk profile. So, patience and selectivity are key here. this is just our opinion and not financial advice
Avoid direct exposure to SpaceX for now given its unpredictable execution timeline. Instead, consider positions in USD/ZAR pairs as a tech-linked hedge and watch Naspers/Prosus for reasonable entry points.
- USD/ZAR
- Naspers
- Prosus
- Starship launch failures
- AI infrastructure oversupply
- rand volatility due to tech sector swings
6/10
SpaceX stock surged following Elon Musk's prediction of $500 billion to $1 trillion in annual recurring revenue by 2027, driven by increased compute capacity and accelerated Starship launches. Q3 results showed 161% revenue growth to $14.6 billion, with the AI segment surging to $7.56 billion. However, analysts caution that Musk's track record on ambitious predictions is spotty, and risks include Starship execution challenges and potential AI infrastructure oversupply.
Our take is based on reporting first published by The Motley Fool.