The SpaceX IPO Will Help Tesla Capture This $10 Trillion Market. Here's How.
SpaceX is ready to invest heavily in AI.
The SpaceX IPO Will Help Tesla Capture This $10 Trillion Market. Here's How.
Overview
SpaceX is expected to receive somewhere around $75 billion in new capital from its IPO proceeds. Given the company's growth goals, expect much of that new capital to be deployed relatively quickly. After all, SpaceX claims that it's chasing a total addressable market worth $28.5 trillion, a figure the company claims is the "largest actionable total addressable market in human history."
Digging deeper into the company's IPO prospectus reveals something surprising: $26.5 trillion of SpaceX's $28.5 trillion total addressable market deals with a single opportunity. That opportunity is artificial intelligence. Accordingly, experts believe that most of SpaceX's spending in future years will be directed toward advancing the company's AI capabilities. Investment bank Evercore, for example, forecasts SpaceX's AI spending to reach $666 billion by 2031.
Details
What does any of this have to do with Tesla (NASDAQ: TSLA), another Elon Musk business? It turns out that SpaceX's AI efforts may be critical to Tesla's long-term success, particularly when it comes to that company's pursuit of an emerging $10 trillion growth opportunity.
Source
Originally published at www.fool.com.
