The stock market’s romance with technological disruption has once again collided with an inconvenient reality: even the most visionary companies must eventually be judged by their ability to generate sustainable profits. The extraordinary debut of SpaceX on the public markets and the subsequent cooling of investor enthusiasm offer a timely reminder that valuations built solely on expectations can rarely escape scrutiny forever.

Elon Musk has long demonstrated an unmatched ability to attract capital by persuading investors to buy into the future rather than the present. Tesla transformed perceptions of the automobile industry. SpaceX revolutionised commercial space launches. Starlink redefined satellite internet. It is therefore unsurprising that public investors rushed to own a stake in a company seen as operating at the intersection of aerospace, artificial intelligence and digital infrastructure. Yet the first month of trading has exposed a familiar pattern. Investors initially priced the company as a limitless technology platform rather than as a business with substantial costs, uncertain earnings and ambitious revenue projections.

Once the excitement subsided, attention shifted to more conventional questions. How quickly can revenues grow? When will profits come? Can ambitious forecasts survive........

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