Harvard Management Co. has disclosed a $2.2 billion stake in Space Exploration Technologies Corp. (NASDAQ: SPCX), marking the university’s largest public equity holding to date. The filing reveals that Harvard held 12.94 million shares of SpaceX Class A common stock as of June 30, valuing the position at approximately $1.81 billion at Friday’s closing price.

The investment represents a significant concentration within Harvard’s portfolio. The SpaceX stake accounts for more than half of the university’s $4.3 billion in total US equities disclosed in the filing. This positions SpaceX well ahead of Harvard’s next-largest holdings, which include Amazon.com Inc., Taiwan Semiconductor Manufacturing Co Ltd., Cerebras Systems Inc., and Nvidia Corp.

What the Numbers Show

The disparity between the disclosed stake value and current market valuation highlights the volatility following SpaceX’s public debut. While the 13F filing values the holding at $2.2 billion, the market value at Friday’s close was $1.81 billion. This divergence underscores the price action since the company went public on June 12, hitting an all-time high of around $225 before falling to roughly $104 in early August, a decline of more than 50% from its peak.

Institutional Interest and Market Context

SpaceX shares have rebounded following the company’s second-quarter revenue report of $7.81 billion, up 92% year-over-year and ahead of analyst expectations of $6.93 billion. This performance contributed to Elon Musk’s net worth topping $858 billion last week.

Other major institutional investors have also disclosed significant positions:

• Nvidia Corp. disclosed a $21 billion stake as of the end of the second quarter.
• Alphabet Inc. revealed a $94.1 billion stake, with about $80 billion under short-term sale restrictions and $14.1 billion locked up through the third quarter of 2027.
• Norway’s sovereign wealth fund disclosed a $1.22 billion stake, its first public position in the company.
• The University of California’s investment arm also holds a stake worth roughly $1 billion.

SpaceX shares closed 0.91% lower on Friday at $140, gaining 0.4% in extended trading.

Ross Gerber, co-founder of investment firm Gerber Kawasaki, has characterized Space Exploration Technologies Corp (NASDAQ: SPCX) valuation as reflecting what he terms the "Elon premium." In an interview with Benzinga, Gerber suggested that investors are paying an excess amount for the company due to its association with Elon Musk rather than purely on fundamental metrics.

SpaceX completed its initial public offering in June, raising nearly $86 billion and hitting a high of $225/share. The stock subsequently experienced volatility, falling below its IPO price of $135/share before recovering some value. Gerber noted that some clients had already liquidated portions of their holdings during this period.

Valuation And The Elon Premium

Gerber questioned the rationale behind SpaceX's current market capitalization of $1.3 trillion. He compared the price-to-earnings ratios of Tesla and SpaceX to those of companies like Google, stating they "don't really make sense" in relative terms.

He estimated that the "Elon premium" could range between $500 billion and $1 trillion added to the company's actual value. "I personally have chosen not to pay that premium for it," Gerber said. He indicated he might consider investing if the stock were to fall below $100.

Skepticism On Timelines And Projects

Gerber criticized Musk's management style, labeling it "management by hallucination" and expressing distrust in any timelines provided by the CEO. He dismissed claims about human colonization of Mars as "absurd" and suggested Musk uses such visions primarily to sell his broader agenda.

Regarding the proposed Terafab semiconductor facility, Gerber called it a "wonderful idea" but doubted the feasibility of Musk's timeline. He noted that the scale of the project creates financial challenges, suggesting Musk needs to spend more money than he can currently access.

Starlink As Core Business Driver

Despite his skepticism on valuation and timelines, Gerber identified Starlink as SpaceX's most robust business segment. He highlighted the service's strategic importance in defense applications, including its role in Ukraine and integration with U.S. drones.

Gerber noted that if Starlink continues to generate 50% margins while growing, it represents the company's best business opportunity. He also pointed to potential growth in commercial internet services for aviation, noting that most planes currently have poor internet connectivity except those using Starlink.

Orbital Compute And Competition

On the topic of orbital compute, Gerber described data centers in orbit as a "potential possibility" but not viable in the near term. He cited Starship's reusability as the main limiting factor for this concept. He suggested that building data centers on Earth using solar panels and batteries remains more practical for now.

Regarding competition, Gerber acknowledged Amazon.com Inc (NASDAQ: AMZN) plans to launch a rival low-earth orbit satellite service. However, he maintained that SpaceX holds a strong moat due to its launch cadence and reusable rocket technology. He identified geopolitical risks from U.S. adversaries targeting satellites as a greater threat than commercial competitors.