Financial Times: SpaceX IPO showcases Musk's narrative ability, but the $1.78 trillion valuation still needs to be validated by real cash flow.

According to BlockBeats, on June 5th, the Financial Times published an article stating that the most unique aspect of SpaceX's IPO is the difficulty in predicting what kind of company it will become in 10, 5, or even 2 years—which may be exactly what Musk hopes to present. SpaceX confirmed on Wednesday that it is seeking a $1.78 trillion valuation, which, if achieved, would make it the world's seventh-largest company by market capitalization. However, the path to supporting this valuation is unclear. In February of this year, Musk merged SpaceX with xAI, suddenly making AI SpaceX's most important business. Previously, SpaceX's core goal was to make humanity a multi-planetary species; now, AI dominates the company's plans, with xAI contributing over three-quarters of capital expenditures in the first quarter, and 93% of the serviceable markets listed in the prospectus related to AI. Musk is adept at constantly reorganizing the narratives of his businesses based on market preferences. Previously, SolarCity was merged into Tesla and reshaped into an alternative energy group, and Twitter was later combined with xAI. SpaceX is currently supporting its xAI deal with a narrative combining rockets and AI, aiming to surpass competitors by deploying AI data centers in space. However, SpaceX launched approximately 2,200 metric tons into orbit last year, while Musk claims the company would need to launch 1 million metric tons annually to participate in the orbital data center business. While SpaceX rockets and the Starlink satellite communication network are indeed significant achievements, Musk's real strength lies in crafting a narrative. He also points out that ultimately, real cash flow will remain the key factor in evaluating valuations.