We offer our view of SpaceX because it is part of the total ARK Venture Fund portfolio. To see the most updated portfolio, please click here.
Space Exploration Technologies Corp. (SpaceX) designs and manufactures rockets and spacecrafts. The company offers launch services through its rockets and global connectivity through its Starlink satellite constellation, as well as Starshield, a satellite network for government entities.
In 2017, SpaceX demonstrated the ability to reuse the first stage of its Falcon 9 rocket, and in 2022 it was able to refurbish a Falcon 9 first stage in 21 days.[1] In 2023, SpaceX is launching a rocket roughly every four days.[2] Despite demonstrating the capability and robustness of reusable rockets back in 2017, ARK believes SpaceX has no competitor capable of rocket reusability. Based on ARK’s research, the company’s ability to re-use rockets results in structurally lower launch costs than competitors that will prove difficult to match. SpaceX also has the most aggressive and advanced technological roadmaps for rocket, satellite, and interplanetary development, which are all underway today. SpaceX’s latest reusable rocket is Starship, a two-stage super heavy lift launch vehicle and spacecraft. It is the heaviest, tallest, and most powerful space launch vehicle to have flown, and SpaceX plans for Starship to be fully reusable.
The largest near-term opportunity for SpaceX is its Starlink satellite constellation that is designed to deliver global internet access. SpaceX has already deployed 1,000s of Starlink satellites into orbit.[3] BroadbandNow Research reported that 42 million Americans do not have access to broadband.[4] If that number is correct, then offering broadband service to the underserved in the US could represent an addressable market of roughly $10 billion per year, if one assumes that the average household contains 2.6 people and that the average monthly broadband bill is $50. That is in the US alone.
Globally, there are billions of individuals who lack consistent internet access.[5] At 1/10th the price-point of developed market customers, we believe this population still represents a compelling market opportunity.
All-in, we believe that the satellite connectivity market could approach $100 billion annually over the medium term, and Starlink is well-placed to win the lion’s share given their unique positioning.
If Starship is successful in achieving rapid reusability, ARK’s research suggests there should be a $270 billion annual revenue opportunity for point-to-point transportation.
Disclosures
Holdings subject to change. Not a recommendation to buy, sell, or hold any specific security.
BEFORE INVESTING YOU SHOULD CAREFULLY CONSIDER THE FUND’S INVESTMENT OBJECTIVES, RISKS, CHARGES AND EXPENSES. THIS AND OTHER INFORMATION IS IN THE PROSPECTUS, A COPY OF WHICH MAY BE OBTAINED HERE. PLEASE READ THE PROSPECTUS CAREFULLY BEFORE YOU INVEST.
There is no assurance that the Fund will meet its investment objective. The value of your investment in the Fund, as well as the amount of return you receive on your investment in the Fund, may fluctuate significantly. You may lose part or all of your investment in the Fund or your investment may not perform as well as other similar investments. Therefore, you should consider carefully the risks at the bottom of this page before investing in the Fund.
ARK Investment Management LLC is the investment adviser to the ARK Venture Fund.
Foreside Fund Services, LLC, distributor.
SpaceX. 2023. “Table of Falcon 9 Cores.”
Wall, M. 2023. “SpaceX aims to launch 144 missions next year.” Space.com
Roulette, J. 2022. “SpaceX whizzes past annual launch record with Starlink mission.” Reuters.
As of May 6, 2022. Busby, j. et al. 2023. “FCC Reports Broadband Unavailable to 21.3 Million Americans, BroadbandNow Study Indicates 42 Million Do Not Have Access.” BroadbandNow.
Cable.Co.UK. 2023. “Global broadband pricing league table 2023.”
ARK’s statements are not an endorsement of any company or a recommendation to buy, sell or hold any security. ARK and its clients as well as its related persons may (but do not necessarily) have financial interests in securities or issuers that are discussed. Certain of the statements contained may be statements of future expectations and other forward-looking statements that are based on ARK’s current views and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance, or events to differ materially from those expressed or implied in such statements.
