SpaceX Rides High as CEO Musk’s Other Venture Falters: A New Look at America’s Largest Private Companies
In a noteworthy development for the aerospace sector, SpaceX achieved a significant milestone last week with the successful launch of its Starship rocket. President-elect Donald Trump was present at the event in southern Texas, donning a recognizable red "Make America Great Again" cap and surrounded by an enthusiastic crowd. Musk, who is now close to Trump after being appointed co-chair of the newly established Department of Government Efficiency (DOGE), has helped bolster SpaceX’s ties with the government. With an impressive valuation of $210 billion and nearly $20 billion in government contracts from NASA and the Department of Defense, the rocket company looks well-positioned for further success as it aims to revolutionize space travel for civilians and cargo.
SpaceX’s upward trajectory is marked by remarkable financial performance, with projected 2023 revenues nearly doubling to $8.7 billion. This impressive growth allows the company to ascend 85 spots to No. 60 on Forbes’ latest annual list of America’s Top Private Companies. A major driver of SpaceX’s revenue surge is its Starlink satellite internet service, which now boasts 4 million subscribers, up from 3 million. The service, powered by approximately 6,000 satellites, grants internet access to remote locales across Africa and the Middle East while also proving valuable in war-torn areas like Ukraine, where it facilitates communications for military operations. Moreover, SpaceX achieved a record of launching 96 rockets in 2023, reinforcing its capabilities and presence in the aerospace industry.
Despite SpaceX’s triumphs, Musk’s other venture, the social media platform X (formerly Twitter), has not fared as well. The company has experienced a steep decline, falling from No. 149 to No. 185 on the Forbes list, with projected revenues of $3.4 billion for 2023—down from $4.4 billion the previous year. X has faced significant challenges, primarily due to dwindling advertising revenue following Musk’s $44 billion acquisition of the platform in late 2022. Its struggles are reflective of a broader trend among companies, as 66 of the 275 top private firms reported lower revenues compared to last year.
Cargill, the agribusiness titan, also experienced a decline, with revenues decreasing nearly 10% to $160 billion, marking the first revenue drop for the company in five years. Nonetheless, Cargill retains its title as the largest private company in the U.S. for the fourth consecutive year. CEO Brian Sikes characterized the current agricultural landscape as "extremely challenging," reflecting conditions affected by falling commodity prices and an oversupply in the global market. The leaderboard of the top five companies remains unchanged for this year, although Mars, Inc. is in the process of acquiring Kellanova, a significant move that could influence next year’s rankings.
This year’s Forbes list saw the entry of 26 new private companies, all of which exceeded the minimum revenue threshold of $2 billion. The highest-ranked newcomer, at No. 62, is US LBM, a distributor specializing in building materials, with rapidly increasing revenue attributed to strategic acquisitions. Notable new entrants include Valve Corporation (No. 139), renowned for its Half-Life video game series, and Clark Associates (No. 174), a major player in restaurant supply. The Coca-Cola Beverages Florida also made its debut on the list, landing at No. 264, expanding the list of familiar brands contributing to the rankings.
Overall, a record total of 275 private companies made the list, an increase from 258 last year and a notable high since the threshold for inclusion was previously set at $1 billion in revenue. This year’s participants include a mix of well-known establishments such as SC Johnson, Chick-Fil-A, and Perdue Farms. However, 13 companies dropped from last year’s rankings due to acquisitions, mergers, or falling revenues, illustrating the constantly shifting landscape of the private sector.
In compiling its annual list, Forbes assesses U.S.-based companies that report revenue of $2 billion or more. While the majority of the rankings reflect companies’ performance through the calendar year 2023, some are based on fiscal years ending as recently as October 2024. The selection criteria exclude various entities, ensuring the list contains a diverse range of reputable private businesses, providing a snapshot of the current economic climate and business performance across several industries.
