SpaceX IPO Goes NUCLEAR

[00:00:00]Elon Musk is apparently now a trillionaire. And SpaceX, which I will remind you lost about $5 billion last year on a revenue of $18 billion, sorry, 18 and a half, I should be fair, is now worth well over $2 trillion. It's worth that much, Wall Street tells me in a way that makes no sense. But, uh, that means that Musk is currently the richest man in the world. I mean, he already was, but he owns 6 billion shares of SpaceX.

[00:00:29]So now he's even more the richest man in the world. So as of producing this story, it's probably changed. SpaceX trades at about $173 a share. The company hit the market at $135 a share.

[00:00:40]And uh even though SpaceX is going public and allowing essentially anyone to own a part of the company for the first time, that doesn't mean you matter to the company. Elon Musk has ensured that his voice is the only one that matters. And no matter what happens out there on Wall Street, no one or no collection of anyone is going to change the path of SpaceX. He controls more than 82% of the shareholder votes in the company in part due to his large ownership ownership of super voting shares. Reminds me of the DNC in 2016, which granted him 10 votes for every share and other corporate agreements.

[00:01:15]And so SpaceX has now set the record for the largest IPO uh in history, beating Saudi Aramco from a while ago. And I know that on this channel they've described a number of ways that the the path to getting to this IPO is inherently and fundamentally corrupt. It is going to blow up. It was set up in a way that would ensure that it would blow up, but that along the way Elon Musk and a bunch of other people would make some money. But there's a lot of stuff that's super shady about this. First of all, the fact that he was able to maintain that overwhelming permanent control of the company despite it now being a publicly traded company. That didn't have to be the case. And uh it didn't have to be artificially pumped up with a little bit of actual business and mostly hype with the fact that SpaceX, which is a sensibly a rocket company, uh also includes Starlink, but at least that's like tangentially related to space. So that's something. And that is, by the way, by far the most profitable part of all of this. It also has XAI, an AI company for some reason, and I know the reason actually. And of course, it also has Twitter. um not because it makes sense for these things to be related, but just because it seems bigger. And also if some of the parts of this are even more wildly unprofitable than SpaceX, well, now it's kind of hidden.

[00:02:32]It just you have one big number. So maybe Twitter isn't worth a third what it was when Elon Musk bought it, but that's now been swamped by the gargantuan SpaceX. And you know, maybe XAI is burning money faster than if you literally threw it in a volcano, but it's kind of swamped again by SpaceX.

[00:02:50]And so this is the sort of thing that should have given a little bit of qualms, urged a bit of caution amongst investors, but there has never been a willingness to see through Elon Musk's hype. and his lifetime of lies and exaggerations and wildly optimistic timelines have seemingly not gotten through to anybody on Earth other than me. And so this is where we're at. And that would be fine, by the way, if this was just SpaceX. But because they decided to manipulate the rules to allow it to effectively eat up 401k and index funds and that sort of thing, when it blows up, it won't just be Elon Musk cultists that end up holding the bag and have to pay for it. Everyone will. I will, you will, your grandpappy is going to have to end up paying for this because of the corrupt way that we got to this point. And so obviously I'm frustrated. Bernie Sanders is up frustrated. He says, "Today, Elon Musk, a trillionaire, pays the same amount into social security as someone making$845,000, uh, reminding everyone that there is, for literally no reason that makes sense other than corruption, a cap on contributions to the social security fund." [snorts] Uh, Roana points out that Musk is worth more than South Africa's GDP. Bernie Sanders and I proposed a 5% tax on people like him. In one year, it could fund pre free public college and trade school, $10 a day child care. My god, I would love that.

[00:04:15]uh special needs education nationwide.

[00:04:17]Wealth inequality is the moral failing of our time and uh Kyle Kolinsky over on Secular Talk points out all the things that it could pay towards medical bills and homelessness and all that. But that yeah, that seems a bit radical. I mean, if you took 5% of Elon Musk's money, then why would he even bother anymore?

[00:04:32]He'd only have like $1.02 trillion. He probably wouldn't even work. What do you think?

[00:04:38]>> It is incredible that this man is now allegedly a trillionaire. Whatever that even means, right? Because that is something that honestly like like we can't comprehend like our brains cannot comprehend that Elon Musk doesn't even know how much money that is because our brains are not made to comprehend that much money that much of anything really.

[00:04:59]Okay. So this is so incomprehensible and we're over here like please can we have 5% of that? Like that is what we're still doing. It's it's so unbelievable that that we're at this point that we're still like like treading lightly trying to be like, "Oh, but is it okay because capitalism still like I'm not trying to take anybody's money because he earned that money. He earned that money." Okay, that is what people are still actually saying. Just some of the rhetoric that I've seen floating around on the internet, they're still saying he earned that money. There is no way anyone could earn that money. If you or I tried to to earn that much money, we would be working for millions of years, John.

[00:05:37]Okay. Like it it's so it's so unbelievable. But this is where we are as a country, right? We are so um just beholden almost like like we don't have a choice anymore. Like our brains have been overcome and just indoctrinated with this capitalistic ideology that someone becoming a trillionaire, our first instinct as a people is to be like, "Good for him. He earned it. He deserves it. He does so much. He is so benevolent. He does so much. And please, can we please have like 5% of that? Just 5%. Which honestly, I'm surprised that they're even asking for that much.

[00:06:12]Usually, it's like 1% that they try to get out of these people. But please, can we just have a little bit so that people aren't homeless, so that people can get the medical care that they need, so that people can have food on their table that isn't like covered in glyphosate or whatever, you know, so people can have clean air, clean drinking water. can we please have just 5% of your money, you weirdo hoarder, you know, like and it's it's never going to be enough for him, right? Like he's just gonna keep going going going because capitalism is a game. Okay, >> look, I don't know what your plans are for the summer, but if you're still paying Verizon or AT&T tons of money for your phone plan, you should stop.

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[00:07:55]>> They they made a game out of it. It's called Monopoly, right? So, like these are games and they're they think they're winning. They're the ones who are winning the game, right? They seem miserable.

[00:08:03]>> I sent [gasps] like I saw the the the post of him becoming a trillionaire and I sent it to somebody on Instagram and I was like, a trillion dollars and he still like doesn't have a chin. You know what I mean? Like like it's just like priorities. Like you can't have it all.

[00:08:17]Okay.

[00:08:18]>> Yeah. I look, he has a trillion dollars and I don't, but I don't know. This morning I had a dance party with my daughter who talks to me. We have an actual relationship and apparently a trillion dollars can't buy that. So, you know, he's got a nicer car than me, I suppose. But anyway, um yeah, this is this is a massive ridiculous issue as as you said, we could you nobody can earn this money. I've seen thrown around that if you if you went back to when Jesus was born and earned $7,000 an hour from then until literally I'm saying this sentence, you wouldn't have as much money as Jeff Bezos. And I've seen people check the math and that is true.

[00:08:52]And the funny thing about that is we are closer in net worth to Jeff Bezos than Elon Musk is at this point. Jeff Bezos, I'm sorry Jeffy, you're kind of a broke in comparison to Elon Musk. That's how ridiculous all of this has become.

[00:09:07]And that has of course a political component because in addition to us manipulating us Trump's uh DOJ and the rest of the regime manipulating things to allow him to get onto these exchanges and fasttrack being allowed to you know like have the index funds and the 401ks invest in them rather than maybe waiting a year to see if the whole thing blows up first. Um in addition to that he already spent $290 million on the 2024 election cycle. So like he could spend 5 billion, 10 billion. What what would be the difference? That's a rounding error on what he has and it would be legal to do it because we've legalized bribery as we've legalized more generalized corruption and we're supposed to believe that all of that is cool and all of that is fine as he gets ready to potentially ruin all of our collective retirements.

[00:09:56]And uh you know we we have a video of SpaceX sort of making clear that they understand the the effectively the rug pull that's being uh played out here. So take a look.

[00:10:06]>> While most initial public offerings allocate 5 to 10% of the offering to retail investors, SpaceX is targeting 30%. And Brett Johnson, the CFO of SpaceX, told a room full of bankers on the record that retail is going to be a critical part of the IPO and bigger than any IPO in history. because in his words, "Retail buyers have been incredibly supportive of us and of Elon for a long time, and we want to make sure that we recognize that." Translated out of corporate speak, the CFO of SpaceX told a room of bankers that the largest initial public offering in history is going to dump 30% of its supply on retail buyers. And not because retail buyers help with price stability, not because they help with long-term shareholder alignment, because they're loyal to Elon. And that's how this story unfolds. The buyers and sellers of SpaceX don't show up at the same time.

[00:10:56]The buyers are forced in early. The sellers are unlocked later. Shares move from insiders sitting on a lowcost basis to passive funds and retail whose retirement accounts absorb them at peak valuation. Portfolio manager George Noble said it best. Your 401k is the exit liquidity 100%. And it doesn't need to go up much for this to be massively valuable to those early adopters, the people that got in, you know, on the ground floor.

[00:11:22]Uh SpaceX uh stock went up 19% today and it did it because of the only thing that seems to drive Wall Street in the last few years is just high vibes expectations. Um I I just I want to remind everyone it doesn't make $und00 billion a year which considering the valuation I don't even know if that would be impressive. It doesn't do it.

[00:11:43]Elon Musk is promising something like a $400fold increase in profits in the next four years. And I don't believe that that is going to happen. Now, maybe I'm a dummy, or more likely, maybe he is. And I feel like he's been presenting evidence of that to you for literally years. Uh maybe I'm wrong. Maybe the increased profit statements will be delivered to Wall Street by an Optimus robot riding in a Tesla Roadster. And then he'll get in a rocket and he'll fly to our Martian colony. And along the way, he'll wave, you know, hello to all of the AI space data centers we have. Or maybe all of that was just hype targeted at marks.

[00:12:23]And maybe when they're recognizing the retail investors, that's the same thing as saying, "We know that Elon Musk has the most sheepishly devoted cultists in world history, and we are going to squeeze them for every cent we possibly can." Those are my thoughts. Yas, any other thoughts?

[00:12:40]>> Yeah, it Well, first of all, the word around NASA is like nobody likes working with the SpaceX people specifically. I just want to throw that out there just to be a little bit messy. Okay.

[00:12:50]>> I don't know how you'd know.

[00:12:51]>> I don't have any I don't have any connections, but I'm just like it's just like the word around the street. Okay.

[00:12:57]Uh but also the fact that he still has so many of these simps, like so many of these like loyal fans who are just willing to give him more and more money all the time is baffling to me. Like where have they been this whole time? We have been having this discourse for years. ever since um you know when Elon first came out he was like oh I'm going to do like environmentally friendly cars and people are like oh that seems nice and it was like very shortly afterwards that we were like oh he's just another billionaire because of course a billionaire is going to billionaire and now I guess he's going to trillionaire okay so like all of this is crazy and the fact that we still have people celebrating this and trying to ride these weird coattails is weird okay and only a few handful of people are going to get rich off of this and then they're going to tell you, "Oh, look at the stock price. Look at the stock market."

[00:13:44]D. We are not going to feel any of this.

[00:13:46]None of this is going to be good for the overall economy of the United States and for the people for for our actual communities, for our local um communities where people are actually living and trying to exist here in these United States. The wealth inequality is mind-boggling. The fact that our government let this happen because they definitely could have stopped this from happening a long time ago. That is why everybody feels so helpless. This is not just one evil like like cartoon villain here, okay? Our government is enabling him, not just our government, but probably a lot of other governments too because as you pointed out, he is very involved in electoral processes and that never gets investigated, you know, because why why would anybody investigate it? So, that's where we're at. But, you're absolutely right to point out, and I just want to make another point of it because it's so uh prudent. I think all of this has always been hype. He has always had so many uh funding rounds just funded on hype. He would say, "I'm going to do this." And people would give him money. He never delivers or he delivers something weird and like not good and then they say, "Oh, look, well, whatever. I'll still give you next more money for your next thing that you do." And you know, even with Tesla, he didn't build Tesla. You can say that he's he's good at business for what he's done with the company. Um I don't think you can say the same thing about X or formerly Twitter, but you know, whatever. I don't I really don't know why anybody still buys anything from him.

[00:15:13]>> Yeah, it's uh it's incredibly frustrating and consequential.

[00:15:16]>> Every time you ring the bell below, an angel gets his swings. Totally not true, but it does keep you updated on our live shows.