SpaceX Ignites the Space Theme
SpaceX IPO Valuation Hits $1.25 Trillion
Space Theme Stocks Emergence… Yet Profits Remain in the Red
One of the hottest issues in the capital market this year is the IPO of SpaceX. Founded by Tesla CEO Elon Musk, SpaceX is pursuing a public listing after incorporating the AI model xAI as a 100% subsidiary. The stock market estimates its post-IPO market capitalization at $1.25 trillion (approx. KRW 1,800 trillion).
Last year, xAI acquired the social media platform X (formerly Twitter), and SpaceX operates Starlink, its low-earth orbit (LEO) satellite communication service division. Ultimately, the SpaceX IPO is the culmination of Elon Musk’s ambition, connecting X, xAI, Starlink, and satellite launch operations.
The core value of SpaceX lies in significantly reducing the cost of launching rockets into space. Space rockets are divided into the Starship, which performs the intended tasks in space, and the launch vehicle (booster) that sends the spacecraft up. By designing reusable launch vehicles, SpaceX has slashed development costs to one-tenth of the level of traditional government-led projects, such as those by NASA.
The rapid decrease in space project costs has led to an increase in the number of rocket launches. This enabled the operation of numerous LEO satellites, leading to the commercialization of satellite communication services like Starlink. LEO satellites can provide seamless communication services in areas without ground stations, a strength that became widely recognized during the war in Ukraine. Through its "Starship" project, SpaceX plans another revolutionary cost reduction by making not just the launch vehicle, but the spacecraft itself, reusable.
The U.S. Space Force budget has already begun to surpass NASA's budget starting in 2024. Furthermore, President Trump’s "Golden Dome" missile defense project necessitates a space-based interception system. Reflecting this trend, investment in space startups surged in 2025, with over $3.1 billion pouring into the top 20 companies. This signifies that the space industry has emerged as a next-generation growth engine.
A representative Exchange-Traded Fund (ETF) investing in the space theme is the U.S.-listed ARK Space Exploration & Innovation ETF (Ticker: ARKX). ARKX currently invests in 35 stocks, with a portfolio comprising defense and space launch companies such as L3Harris Technologies (LHX), Kratos Defense & Security (KTOS), and Rocket Lab (RKLB).
In the domestic market, the 1Q US Aerospace Tech (0131V0) ETF, listed last November, offers concentrated investment in 12 stocks. Its major holdings include RKLB, Joby Aviation (JOBY), and AST SpaceMobile (ASTS), with a higher weighting toward aerospace companies rather than traditional defense firms.
A point of caution when investing in the space theme is that pure aerospace-related companies—excluding large defense contractors—are still in a deficit phase. While it is undoubtedly a growing industry, it remains vulnerable to market volatility. From a long-term perspective, however, this volatility can be viewed as a buying opportunity. Rather than trying to predict timing or price, a split-investment (dollar-cost averaging) approach will likely increase the probability of success.