Meet the Company Taking on SpaceX and Tesla -- It Could Be Worth More Than Both Combined by 2027
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Meet the Company Taking on SpaceX and Tesla -- It Could Be Worth More Than Both Combined by 2027
May 26, 2026 — 02:50 am EDT
Written by
Adam Levy for
The Motley Fool->
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Key Points
- SpaceX is set to IPO with a $1.75 trillion valuation while Tesla maintains a $1.6 trillion market cap.
- This company could be worth well over $3 trillion based on its core businesses.
- SpaceX and Tesla's valuations are tied to uncertain business prospects.
- These 10 stocks could mint the next wave of millionaires ›
There's a growing expectation that Elon Musk will eventually combine all his businesses under a single entity.
Earlier this year, he oversaw the merger of SpaceX and xAI, the latter of which had previously acquired his social media company, X (formerly Twitter). The next step of combining SpaceX and Tesla (NASDAQ: TSLA) may be a bit more difficult, but it's still well within reason. Musk further strengthened the tie between the two companies earlier this year with the launch of their Terafab joint venture, which aims to make custom chips for both companies' artificial intelligence (AI) endeavors.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
Despite the sprawling business empire Musk has built, one company finds itself with a significant number of operations that go head-to-head with Tesla or SpaceX. And it could be worth more than both companies combined by next year. Here's why Amazon (NASDAQ: AMZN) should be on your radar.
Image source: Getty Images.
Can Amazon top $3 trillion?
SpaceX is set to make its public debut at a valuation of $1.75 trillion. Tesla's market cap is around $1.6 trillion. That means Amazon will have to top $3 trillion to outweigh the combined heft of the two competitors.
To be sure, Amazon is already within spitting distance of $3 trillion, with a market cap of $2.85 trillion at this writing. Still, the stock looks undervalued based solely on its core businesses of retail and cloud computing. And it has potential upside in business endeavors in satellite internet and robotaxis, where it directly competes with SpaceX and Tesla.
In retail, the company is producing solid double-digit revenue growth, but the real story is its expanding operating margin. There are three key drivers of its operating margin. Amazon's improved logistics network is driving down shipping costs. Amazon's new stand-alone logistics service could continue to drive down cost-per-unit thanks to scale advantages. Additionally, high-margin Prime subscription and advertising revenue continue to outpace retail sales.
Meanwhile, Amazon's cloud computing business, Amazon Web Services (AWS), has seen revenue growth accelerate in each of the last three quarters. Accelerating revenue is closely tied to its growing capital expenditure (capex) budget. With another big step up in spending this year, that revenue acceleration should continue.
AWS is the largest cloud computing platform in the world, but SpaceX could present a significant competitor. Its initial public offering (IPO) filings revealed Anthropic agreed to pay $1.25 billion per month for access to its Colossus data centers over the next three years, and it expects to sign similar deals in the future. But AWS can produce much better profits than SpaceX thanks to its scale and its custom chips.
During Amazon's first-quarterearnings call CEO Andy Jassy said the majority of AI accelerators coming into its data centers are its custom Trainium chips. He noted that using its own chips will provide several hundred basis points of operating-margin improvement for AWS.
The retail and cloud computing businesses are firing on all cylinders and should produce substantial operating profit growth for the foreseeable future, pushing Amazon's valuation higher. And Amazon's satellite internet service and robotaxis could add substantial upside. In fact, both SpaceX and Tesla derive the vast majority of their valuations from those two businesses.
Are SpaceX and Tesla overvalued?
Both of Musk's companies are valued based on their potential earnings rather than their current financial results.
That means making many guesses about how big their addressable markets will be, what percentage of the market they can capture, and what competitive pressures will affect their operating margins. There's no shortage of optimism around either Tesla or SpaceX.
Valuation expert Aswath Damodaran estimates SpaceX's intrinsic value is about $1.2 trillion. That's based on its profit