Nobel Prize-winning economist Paul Krugman has expressed skepticism about SpaceX's valuation, comparing it to Bitcoin. In a recent blog post, Krugman noted that while Elon Musk's company has a profitable division called Starlink, its overall valuation of $2.75 trillion is inflated due to hype surrounding the company and its CEO.
Krugman drew an analogy between SpaceX's valuation and Bitcoin's price surge in 2025, which he attributed to President Donald Trump's support for the cryptocurrency. He argued that investors are placing too much faith in Musk, whom they view as a 'wizard,' rather than assessing the company's underlying financial performance.
The economist also questioned how much SpaceX's valuation should be based on its technological prowess versus Musk's influence through his ties to President Trump and access to 'crony capitalism.' Krugman concluded that SpaceX is essentially a $2.75 trillion meme stock, with its price driven by viral internet hype and social media sentiment rather than the company's financial performance.