SpaceX: $28.5T TAM, $1,000+ Stock Potential?

Space Exploration Technologies, valued at approximately $2 trillion, is aiming for what it calls the largest actionable total addressable market in history, estimated at $28.5 trillion. This vast growth runway suggests considerable long-term potential for the space stock.

Currently trading in the triple digits, SpaceX shares could theoretically rise above $1,000 if the company successfully capitalizes on its growth opportunities. One Wall Street analyst has already set an $800 price target, underscoring this optimistic outlook.

Stock splits are often considered when share prices become high. Factors such as making shares more attainable for retail investors and improving market liquidity can drive a company to split its stock. These elements would be relevant for SpaceX if its share value continues to climb.

Historically, companies like Berkshire Hathaway have avoided stock splits for their Class A shares, believing higher prices attract more serious, long-term investors. However, Berkshire later introduced Class B shares and conducted a significant split to facilitate a major acquisition, demonstrating that strategic reasons can indeed prompt stock splits.