"Elon Musk worship" sweeps the globe! SpaceX's mega IPO feast ignites a frenzy of commercial space investment.

Elon Musk, leader of Tesla, Inc. and the world's richest person, is about to take his global space exploration leader SpaceX public, causing a global influx of funds towards those cutting-edge space exploration companies closely related to the broader commercial space sector that operate on a smaller scale compared to SpaceX. Global stock market investors are eager to find ways to ride along with this potential IPO, which could become the largest IPO in stock market history. According to a statistic compiled by an institution, the Procure Space ETF (UFO) with a market value of approximately $415 million attracted nearly $175 million in funds in the first quarter of this year, setting a record for the largest fund inflow since its establishment in 2019. As investors look for ways to invest in SpaceX a tech giant engaged in space exploration, satellite communications, and cutting-edge artificial intelligence technologies that has become one of the most anticipated IPO companies in recent years this record-breaking fund inflow follows suit. "There is indeed a series of impacts that revolve around the special excitement that could potentially participate in a trillion-dollar IPO," says Philip Blancato, Chief Market Strategist at Osaic Holdings. Osaic Holdings is the 15th largest institutional type ETF holder of this ETF. He also stated that his investment advisory firm is seeing a strong demand from investors for obtaining exposure to SpaceX investments and long-term positioning. As shown in the chart above, the quarterly fund inflow for the Procure Space ETF surged to near record highs. Blancato stated that even five years ago, investing in this UFO ETF would have been considered a "completely crazy" idea in his view. However, he added that the situation has changed significantly with the expected acceleration of commercial space exploration due to global government stimulus measures. The "Musk Belief" raises SpaceX's valuation to the sky A basket of American space stocks compiled by Bank of America Corp, which includes companies crucial to the space race as key participants and potential beneficiaries, has surged by 23% this year, compared to a 3.4% decline in the S&P 500 index and a 4.2% decline in the Nasdaq 100 index. As shown in the chart above, the space stock index has significantly outperformed the S&P and Nasdaq since the beginning of the year. Among the stocks in Bank of America Corp's basket, the biggest gainer percentage-wise is the space exploration company Satellogic Inc. This company uses satellites to map the Earth and has received funding from Liberty Strategic Capital, owned by Steven Mnuchin, as well as Cantor Fitzgerald LP an American investment bank run by the children of the U.S. Secretary of Commerce, Howard Lutnick. The stock has surged by nearly 280% this year. Other big gainers include the satellite communications company Iridium Communications Inc. and Planet Labs PBC. According to insiders, SpaceX is considering going public as early as June, as the company has secretly submitted an IPO application and raised its target valuation to over $2 trillion. Investing in Elon Musk's tech companies whether it be Tesla, Inc., SpaceX, or xAI (which has already merged with SpaceX) is more about trusting his vision for future growth than beating the market based on financial fundamentals. The most typical case of "Musk Belief" is SpaceX, as investors flock to assets associated with SpaceX through Tesla, Inc. and the Destiny Tech 100 ETF, not just for today's satellite broadband empire and rocket launch business, but for the "100 million satellites, super-scale space cloud servers, CECEP Solar Energy-powered space orbit AI computing system, and even a lunar satellite factory," and even far-fetched blueprints like the Kardashev II civilization, paying high premiums. With the biggest bottleneck in global AI data centers shifting from "AI chips" to "power systems and deployment", SpaceX's vision of "sending data centers into space orbit and powering them with CECEP Solar Energy" is entering an engineering trial-and-error period, with the capital market urgently needing larger, more stable capital pools and more unified organizational boundaries. In Musk's AI computing infrastructure plan, as the AI boom faces increasing bottlenecks in large-scale infrastructure and energy supply, the next major leap in artificial intelligence may not occur on land, but in space. SpaceX plans to launch an astonishing 1 million satellites, which will serve as a distributed space-level cloud computing super server system. These orbiting data centers are said to utilize CECEP Solar Energy to handle massive artificial intelligence workloads. Musk believes that to achieve this goal, a super satellite factory must be built on the moon to accelerate AI super satellites to lunar escape velocity using mass drivers (electromagnetic railguns). Without a doubt, his visionary scenarios resembling Hollywood sci-fi films will require a large amount of cash and the potential SpaceX IPO is a major source of funding. SpaceX is considering going public in June (around Musk's birthday), with a potential fundraising of up to $50 billion, making it potentially the largest IPO in history. It is expected to achieve a staggering valuation of over $2 trillion, surpassing Tesla, Inc.'s current valuation of about $1.3 trillion. The "triple play" of Tesla, Inc., SpaceX, and xAI forming the "Musk super business empire" may be the ultimate destiny of these three companies founded by Musk. With Musk recently making positive progress in areas such as space AI data centers, large-scale energy storage, artificial intelligence, fully autonomous driving (FSD), Robotaxi, and innovative "Optimus" humanoid Siasun Robot & Automation, the world's richest person seems to be stringing together a "super vertical integrated asset chain" of AI, communications, space, energy, Siasun Robot & Automation, and other globally popular investment themes or narratives, in order to leverage capital markets and industry simultaneously. Unifying these themes into a "full-stack super cutting-edge technology infrastructure platform" could greatly assist in pricing the SpaceX IPO, boosting Tesla, Inc. valuation, IPO roadshows in the short to mid-term, and investor structure. The era of Space Race 2.0 is here! "Launching a million tons of satellites per year, each satellite equipped with 100 kilowatts of power, could add 100 gigawatts of artificial intelligence computing power annually, with no operational or maintenance costs, and connected to the Starlink constellation via high-bandwidth lasers. Furthermore, a lunar satellite factory could be built, and using mass drivers (electromagnetic railguns) to accelerate AI satellites to lunar escape velocity, without rockets. This would increase artificial intelligence computing power to over 100 terawatts annually and help humanity take a significant step towards a Kardashev II civilization," Musk recently responded to fans in a post on X. The timing of this IPO comes at a time when global stock markets are seeing a significant surge in enthusiasm for space exploration. NASA's "Artemis II" spacecraft, carrying four astronauts, has embarked on a personal lunar voyage trajectory for the first time in over 50 years. As of Monday, they have traveled further in space than any astronauts in history. At the same time, the U.S. and Chinese governments are investing billions of dollars to try to send humans back to the moon and wholeheartedly support all sizes of commercial aerospace technology companies in actively exploring space, thereby significantly boosting investments in the entire commercial space sector. Leading U.S. cloud computing and e-commerce giant Amazon.com, Inc. recently received approval from the U.S. Federal Communications Commission to add approximately 4,500 satellites to its planned satellite constellation bringing the total to just under 8,000 satellites. About 200 satellites have been launched so far, and the entire constellation is expected to be operational by 2029. Meanwhile, China is also building its own two massive low-Earth orbit networks: one for government and security purposes and the other for international market clients, with a planned total of tens of thousands of satellites. While SpaceX is poised to establish a substantial monopoly in satellite communications and potential space AI data centers when it goes public, its well-funded competitors have the ability and resources to erode Musk's moat. For example, China's commercial space program is supported by multiple affiliated entities from different countries, which should enhance its likelihood of success. As for Amazon.com, Inc., its user terminal design is cost-effective, and if it passes the saved costs on to consumers to challenge Starlink at a lower price, it could gain a foothold in the market. "We are truly experiencing a real global Space Race 2.0 era, competing to be the first to establish a permanent space infrastructure system on the moon," says Andrew Chanin, CEO of ProcureAM, who manages the UFO ETF. Through EchoStar, a provider of satellite and internet services owned by Charlie Ergen, the fund already has a certain exposure to SpaceX, which holds a small portion of the space exploration enterprise owned by Musk. Chanin says that while space tourism including high-profile attempts made by Blue Origin, owned by Jeff Bezos of Amazon.com, Inc., and Virgin Galactic Holdings Inc., founded by Richard Branson attracted strong interest from some investors a few years ago, the market's attention has now shifted to satellite communications and emerging areas such as space-level super-scale AI data centers and lunar infrastructure. Furthermore, this industry overlaps significantly with another sector that has become a favorite of investors in recent years the defense military industry. "Right now, what you're building is no longer guns and bombs," Blancato says. "You're building an entire satellite-based space infrastructure and high-end drones, which is very different from what we used to do." The main contractors for NASA's "Artemis II" moon landing mission include Boeing Company, Lockheed Martin Corporation, Northrop Grumman Corporation, and L3Harris Technologies Inc. all of which are also major defense military system contractors for the U.S. military. However, market observers generally point out that SpaceX's upcoming entrance into the public market, along with Musk's personal star power, is the core driving factor behind the surge in investor interest in the sector. "The fact that the world's richest man is actively investing in the field of space exploration is giving unprecedented attention to the global commercial space industry that has not been seen in decades," says Matt Maley, Chief Market Strategist at Miller Tabak + Co. Undoubtedly, Musk's belief can generate strong valuation expansion and fundraising capabilities, but whether the stock price can enter a long-term super bull market ultimately depends on whether the vision can continue to new verifiable milestones. SpaceX's current "investor loyalty and durability test" is typical: Amazon.com, Inc.'s Kuiper and Amazon.com, Inc. are negotiating the acquisition of the satellite communications operator Globalstar, Inc., Chinese low-orbit satellite networks, and European sovereign alternative solutions are all eroding Starlink's near-monopoly position. According to preliminary valuation estimates, if Starlink corresponds to a valuation of about $700 billion, it may need to achieve approximately $39 billion in EBITDA by 2030 to adequately support this valuation, significantly higher than some optimistic forecasts. In other words, belief can lift the valuation to the sky first, but performance and competition will determine whether it can sustainably remain in the sky.