Elon rages in SpaceX bubble crash

[00:00:00]All right, so apparently the AI bubble is absolutely popping today as SpaceX and Elon Musk are crashing out. And let me show you guys what's going on. So this was your headline then. S&P 500 closes lower as tech stocks slide.

[00:00:14]SpaceX notches 3-day losing streak. Yes, three days in a row now SpaceX stock has been down. And then today was the big one. 16% down six. Uh SpaceX stock tanks 16% extending slump following post IPO rally. And uh if you guys know anyone in this thing or if you're in this let me know where you're at. But at the moment, yeah, it's down. Now, they had a bunch of announcements today though, which I want to go over, which is crazy in itself. SpaceX bond offering expected to raise at least 20 billion. Okay, so they need to refinance their debt. I think they have like 29 billion in debt. Um, from the IPO though, they're supposedly raised 85 billion and then they said they have 100 billion in cash. So, it there's a lot of um pies in the air with this company. We we'll we'll leave it that way. And then when you're looking at the stock, the stock was down um 16.43% to precise. And after hours, it's kind of bouncing up and down. I think it hit 153 at the lowest and then currently at 155 in the after hours. So, uh, this is where we're at. And it was just it was a one-way ticket if you watched it today.

[00:01:23]Uh, here's some more. Bullish investors are betting big on prospect of Musk driving long-term returns at SpaceX.

[00:01:31]Okay, so if you think Musk can do it and you're all in, I guess, uh, the company posted a 4.9 billion net loss in 2025.

[00:01:39]So, that's not good. You're losing money. And lost 4.28 billion in the first quarter. Ow.

[00:01:47]So, if that trend continues, I mean, you're just bleeding billions in this idea that, hey, take all my money. I guess some people are on board with that. Um, for example, this is someone from our community writing that they know someone who's in this stuff. This is from Medio. Medio says at work yesterday, I heard this kid, not a day over 20, so young kid, talking on the phone about his quote, investments. I asked about it and he told me, "Yeah, bro. I'm doing pretty good. I just sold my Bitcoin to go all in on SpaceX.

[00:02:20]Face love, right? So, um, if you know any of the bros who are, uh, absolutely making bank with SpaceX today, let me know. But, yeah, it's down 16%. It is still above the IPO price if you got in early. I believe that was 135 and then at the moment was at 155. So, the people are going to say, "Oh, Chris, you're so dumb. It's not crashing. We're at 155."

[00:02:42]But the thing is it topped out around 225. So some people are down pretty big.

[00:02:48]If you're buying at 220, please raise your hand. I'd love to hear about that.

[00:02:52]If you know anyone, please raise your hand. I'd love to hear about that. And uh essentially what's going on is you're going to start to see more unlocks. So I don't think you got the big unlocks yet, meaning that insider selling, but it's going to come soon. This is Ross Gerber.

[00:03:04]He says, "Pay attention to this. SpaceX investors have uh a lot of stock locked up." Okay, here's a full SpaceX share unlock time. Right now, only 4.9% of the shares are in the free float. So, you still got 95% shares are going to lock and just, you know, get dumped. Um, here's how that changes over the next 14 months. And it's it's staggered. So, maybe starting around August 8th, according to this chart, and I've heard different estimates on this, but I'll just say this, they they will unlock over the next year. And it's going to be wild because I I saw articles saying, "Oh, guys, look at all these SpaceX employees that are millionaires. Look how awesome they're doing." But they don't actually get that money until they sell their stock, right? So that's why we're going to be watching this. Now, regarding the AI bubble, it was actually all over the market. Uh Nvidia, Google, Microsoft, Amazon, SpaceX, right?

[00:03:55]Broadcom, Apple, etc. And uh this was actually part of it. There's a lot of you know money was going into AI a lot of moving around and then evidently there are like big employees that are leaving Google to go to other competitors be it open anthropic etc right so Alphabet paces for worst day in a year on AI concerns after highprofile exits and this is um this is something that you got to bring up because Elon you know the Elon fanboys and fan girls always tell me how dumb I am oh Chris you're so dumb we're all going to go to Mars right Okay, so this is an older article and all the stuff is public. You can look it up pretty easily. SpaceX founder Elon Musk plans to get humans to Mars in six years. Wow, in six years.

[00:04:42]Okay, I want to hear about this one.

[00:04:44]>> Really the key is uh is making this affordable to uh almost anyone who wants to go. And we think um based on this architecture um this architecture assuming optimization over time like the very first flights wouldn't be would be fairly expensive but the architecture allows for a cost per ticket um of less than $200,000 maybe as less maybe as little as $100,000. This system really gives gives you freedom to go anywhere you want in the greater solar system. So you can actually travel out to the capabil to the earth cloud. Um I wouldn't recommend this for um interstellar journeys but uh this uh this this basic system provided we have filling stations along the way um is means full access to the entire greater solar system.

[00:05:37]>> He was saying this back on September 28th 2016. So 10 years ago right? He was saying, "Guys, we're going to go to Mars. Get humans to Mars in six years."

[00:05:49]He was saying that 10 years ago. You do the math on that one. And if you can't understand this basic math that Ela Musk is a liar, well, I'll just say this. Don't bet with your emotions because you will lose all your money, right? And and um also can say this to to to in the nicest way possible. You have been tricked. You have been scammed. You have been bamboozled. This would be King Fluffer Farzod. He says here, "I can't help but be super impressed by SpaceX's ability to generate billions of dollars per year." Okay. One would think a rocket company would be a gigantic cash burning endeavor long term, not even two years ago, especially when the company is trying to colonize Mars.

[00:06:32]It's not one would think that it would be a cash burn company. It is a cash burn company, right? So, there's that.

[00:06:37]Um, but turns out, okay, that building the infrastructure for AI will be the thing that generates the dollar dollar sign, right, to fund Mars. Wow, we're going to Mars, Farzad. What an insane timeline we live in, you guys. This is what the uh bros are saying. Herbert says, "Then SpaceX has signed a new AI compute agreement with open source AI reflection a startup reflection AI worth up to right 6.3 billion through 2029.

[00:07:08]Under the deal, Reflection will gain access to SpaceX infrastructure and Nvidia GB300 chips paying approximately 150 million per month." Okay, so these kind of contracts, the way that they pump up the numbers is they extend out the years. So that might be true, right?

[00:07:25]The company's going to give 150 million.

[00:07:28]That's with the M per month starting July 1st. So that would be in like a week. Okay. Now, how long could this thing run? Because what if the AI bubble completely pops and this company, what's it called? Reflection AI. What if they just don't have any money anymore because there's no more money there, right? Then that obviously would end the contract with Musk and such because they can't pay it. either company can end the contract with 90 days notice after first three months. And um there was someone who pointed out recently that Elma SpaceX thing is becoming basically a a finance company I guess you call it where the the concept is I I borrow money I buy chips from Nvidia I build the data centers you know and I borrow money to do that and then I rent out the space to other companies right and then everyone's borrowing money to keep the thing going but what if people aren't buying your products anymore? Uh, someone wrote here, "Can someone explain to me like I'm 9 years old why uh SpaceX is crashing right now?" Right? And this is the kind of people who buy this stuff. Uh, and then this is an answer, and this is actually, you know, this a good way to answer to this audience. Uh, pretend SpaceX is a vending machine.

[00:08:34]Okay, I'm with you. The average vending machine in the USA makes around $400 a month in sales. Okay. What would you pay for the machine? Think about your answer before going forward. Would you pay $4,000 so you get your money back in a year, not including operation costs?

[00:08:51]Obviously, would you pay $10,000? Okay, good question. Maybe you think the snack business is going to have a massive spike over the next 10 years. So, you're willing to pay 50,000.

[00:09:02]Now, account for future growth. Now, imagine the vending machine had an X on the side because, you know, Elon Musk likes to put X in all his companies.

[00:09:09]Like, oh my god, they changed the vending machine to like X vending, right? I I I really want to buy now and cost what is this? $100 million but still make $400 per month in sales.

[00:09:20]Makes no profit at all. That's the value of SpaceX if you boil the numbers down.

[00:09:25]Check my math. That's actually wild was but the basic idea though is that you are overpaying for SpaceX. Uh it is an unprofitable company and I think the last time we checked price of sales was like 100 something like that. And then Elon Musk was on the rampage. He's attacking Roana the representative. It's funny that Mus wants to sue Roana. Say what? Over his his speech because one must claim to be a free speech champion and absolutionist uh absolutist but uh which of course he isn't. Two Khan is simply linked to an academic study of deaths from US aid aids cuts which Musk presided over. And three, must just called Kana a robber and insider trader, which is way more defamatory and actionable under US liable law as a statement of false facts. So, it's maybe time for Connor to sue Musk. And and Musk, I mean, if you want to go look at Musk social media, you can, but he's going on and on about Roana. Um, Roana said recently, Elon, how about just paying the 5% instead of hurling random insults? And here are the facts. Your uh ASID cuts uh did this and actually basically we're talking about increasing tax on you know billionaire class like Musk by say 5%. And then the research was I guess this is from UCLA.

[00:10:51]It says research finds more than 14 million pre preventable deaths by 2030 if USAD defunding continues including more than four four million children under five. And basically what it is, it's stuff like um like AIDS, I think malaria, other tropical diseases, etc. Because one of the things that a USD funding is, you know, funds this kind of stuff um and and you know, food would be in here also, various aid programs. Remember Musk not only wants to cut this kind of funding, he wants to fire most of the people in the government so that no one's investigating the stuff that his companies are doing. For example, this just came out today. Fatal Tesla crash into Texas home now under federal safety investigation. And and I just asked this basic question. Okay, let's forget about Tesla. Let's just say it's any company.

[00:11:44]Let's say it's uh General Electric or Samsung for example. Whatever country doesn't company, it doesn't matter. And let's say let's use Samsung for example.

[00:11:52]Let's say uh you have a Samsung refrigerator or TV and it blows up in your house. Like it blows up and it finds out like you know lots of people in their houses have TVs that blow up.

[00:12:01]Wouldn't you want the government to investigate why are these TVs blowing up? I think that's a pretty reasonable thing to say. Or let's say you got a use example of Tesla got these cars that are supposed to have this brilliant robot driving and they're crashing into people's houses and killing people.

[00:12:18]Wouldn't you want the government to be like, "Yo, I I'm like want to see what's going on with this." I think that's a reasonable thing. And usually what happens is when something really wrong goes on, people's like, "Well, why why don't why didn't we look at that? Why didn't we investigate that?" Right. I mean, that's that's why you have regulations. You you want to keep people safe.

[00:12:36]>> You know, Elon made a great point. I was involved as a as a kid at PayPal a little bit. Whenever you'd turn off fraud or grift uh or change something, the people who would scream the most were the fraudsters.

[00:12:46]>> And that that was one of the arguments that Elon Musk made. They're like, "Oh, he's screaming. Ah, he must be a fraudster." Right? And it's like Elon Musk is always the one who's screaming the loudest. So, there's that. And and make no mistake, guys. This Elon Musk, dude, it's always after contracts. All these people, they want these government contracts. So, for example, this was the news today. White House set to host weapons makers amid stockpile worry, right? So, keep the war going, expend all your munitions. And then suddenly you say, "Hey guys, I I I need a bunch of drones, right? Where can we find drone making companies or AI companies?"

[00:13:19]And suddenly, you know, Trump's kids got, "Hey, I got a drone company." El, hey, I got an AI and drone company.

[00:13:25]Right? And that's it should be obvious to anyone. Um, and this is just where we're at. Or this is another one. This is new. FAA taps airspace intelligence to build AI traffic control tool. I'm sure Elon Musk and every bros are going to want a piece of that, right? And then you got stuff like this, which is whacked down in itself. SpaceX, again, Elon Musk company handed lowest possible ESG rating by MSCI. So basically, Mus blows up rockets over your house, dirties your water. the way he structures his uh company where he has all the voting power. It's a scam.

[00:14:02]Americans express unease over SpaceX influence on retirement savings and basically people understand the concept that if stuff goes into the index uh then basically your 401ks are forced to buy must scam and also by the AI bubble.

[00:14:17]So do not think that you are alone when you're like oh my god how are we letting people do this and that's why we talk about it. So love to hear your thoughts on this stuff. Thank you for your time and I'll catch youall on the next