(SeaPRwire) –
By: Oliver Hawthorne
Elon Musk’s empire is folding in on itself—and investors are nervous. SpaceX’s $2.1 trillion IPO last Friday has everyone talking, but the numbers don’t add up. The company lost $2.6 billion in operations last year. Yet it merged with xAI, which lost $6.4 billion, and houses X (formerly Twitter), another money pit.
Let’s lay out the facts. SpaceX, founded in 2002, owns Starlink—its only profitable arm, with $4.4 billion in operating income last year. Musk bought Twitter for $44 billion in 2022 and parked it under xAI. Tesla, which he’s led since 2008, lost its top EV spot to BYD last year. Neuralink, co-founded in 2016, has 21 trial participants. The Boring Company’s Vegas Loop faces safety accusations and delays. Musk’s initial $200 million came from selling Zip2 and PayPal, funding SpaceX and Tesla.
Here’s the commercial loop: Starlink’s cash flows into SpaceX’s unprofitable ventures. The end-game? Either SpaceX’s overvaluation crashes when investors realize unproven tech (Mars colonization, space data centers) can’t deliver, or Musk keeps leveraging Starlink until even it can’t carry the load.
Author bio: Oliver Hawthorne, Principal Correspondent at an international tech review, covers global tech giants and their market strategies.
