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Speaker 1: Bloomberg Audio Studios, podcasts, radio news. Bloomberg Tech is alive

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Speaker 1: from coast to coast with Caroline Hyde in New York

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Speaker 1: and Ed Lovelow in San Francisco.

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Speaker 2: This is Bloomberg Tech.

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Speaker 3: I'm Ed Ludlow and I'm Caroline Hyde.

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Speaker 4: And today is the day SpaceX's big debut in the

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Speaker 4: public markets. The company is set to begin trading any

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Speaker 4: moment now.

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Speaker 5: And break down what that means for investors and for

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Speaker 5: the space economy and for the IPO pipeline. Elon Musk,

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Speaker 5: speaking at Star based Texas just a couple of hours ago.

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Speaker 6: I give SpaceX less than a ten percent chance of

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Speaker 6: succeeding at all.

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Speaker 2: To be clear, In fact, I told people this.

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Speaker 6: Look, we're probably gonna fail, but you know, we should

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Speaker 6: give it a try, because if we don't, if there's

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Speaker 6: not an new company that erospace, we will never be

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Speaker 6: a truly space varing civilization.

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Speaker 4: And we check in on these markets as the latest

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Speaker 4: indicated price of SpaceX shares is one hundred and sixty

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Speaker 4: two dollars each, the IPO price one hundred and thirty

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Speaker 4: four dollars.

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Speaker 3: We look at the Nasdaq one hundred ed are we're

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Speaker 3: up rockit rightti percent.

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Speaker 4: Yeah, and look, this is about geopolitics, this is about

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Speaker 4: hopes on some sort of deal and are you with

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Speaker 4: Iran in the United States? But thus far we are

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Speaker 4: completely focused on the impact of this IPO.

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Speaker 2: Yeah.

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Speaker 5: Look, there is a lot of evidence that whatever asset

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Speaker 5: class you look at, people are trying to be positioned

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Speaker 5: to play this IPO in the moment when we start

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Speaker 5: trading imminently, starting trading indicated right now to open at

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Speaker 5: one hundred and sixty two dollars each.

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Speaker 2: We price the IPO one hundred and thirty five.

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Speaker 5: But loads of disappointed people on the institutional side and

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Speaker 5: the retail side.

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Speaker 3: Yeah, who didn't get allocations.

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Speaker 4: But if you've got an allocation, you're looking at maybe

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Speaker 4: a twenty percent pop if it opens at that level.

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Speaker 4: Your hira a land is down at the Nasdaq for us.

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Speaker 3: What are you hearing? What are you seeing?

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Speaker 7: Well, the fanfare from the opening well is over, but

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Speaker 7: we still have legions of Elon Musk fans outside and

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Speaker 7: some movement behind me on the Nasdaq floor. But as

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Speaker 7: you guys were saying, we've gotten a series of indications

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Speaker 7: throughout the morning and they've continued.

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Speaker 3: To edge lower. As traders work through.

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Speaker 7: The price discovery process. The latest indication is one hundred

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Speaker 7: and sixty two dollars a share, down from earlier levels

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Speaker 7: that were around one seventy five. Even so, that is

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Speaker 7: above the one hundred and thirty five IPO price and

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Speaker 7: does imply a valuation of some two point one trillion dollars,

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Speaker 7: meaning SpaceX would still rank among the most valuable companies

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Speaker 7: in the world from its very first trade.

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Speaker 5: One sixty two a share twenty percent from the IPO price, exactly,

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Speaker 5: implying a market value roughly two point one trillion dollars.

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Speaker 5: Bloombok to your heart and end back throughout the hour

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Speaker 5: at the Nasdaq. Let's talk about SpaceX. Christian Garrett one

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Speaker 5: three seven venches, managing partner. SpaceX was one of the

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Speaker 5: first investments that one three seven Benches made net net.

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Speaker 5: In the end, the state worth billions and billions of dollars.

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Speaker 5: And you've been with the company as its story changed,

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Speaker 5: started with reusability and rockets. It's a future of AI

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Speaker 5: and the enterprise. I just ask you, Christian, to reflect

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Speaker 5: on what this IPO represents to you in the firm.

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Speaker 8: Well, you know, first off, we're extremely excited for the IPO.

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Speaker 8: It's a great milestone, but you know, as long term investors,

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Speaker 8: this is just the beginning of the journey.

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Speaker 2: For the Company'd say that, of course, Look.

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Speaker 8: I think you know, the company, like you mentioned, has

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Speaker 8: gone through this evolution, and many things have grown in

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Speaker 8: the vision or scope, but many things have stayed the

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Speaker 8: exact same. The company has always had the mission to

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Speaker 8: make humanity multiplanetary, to expand consciousness across the universe, and

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Speaker 8: they knew that they had to find incredible business models

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Speaker 8: where they had advantages in order to fund that vision.

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Speaker 8: They started by really bringing launch back to America, which

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Speaker 8: in and of itself is an incredible thing to be

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Speaker 8: a part of. They were the first company to build

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Speaker 8: a reusable rocket, a partially re usable rocket, which dramatically

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Speaker 8: dropped costs for launch. That advantage gave them the infrastructure

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Speaker 8: to build Starlink, which is the world's largest constellation, and

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Speaker 8: from there you're seeing that they have the advantage to

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Speaker 8: build infrastructure terrestially and hopefully in orbit for data centers. A. L.

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Speaker 4: Musk We started the show saying, just a ten percent

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Speaker 4: chance that was survival. Was that what you thought when

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Speaker 4: you first were getting under the skin of this company

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Speaker 4: at one, three seven, Did you have bigger bets from

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Speaker 4: that in terms of thinking it'd be more than ten

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Speaker 4: percent probability? And where do you see your holdings going

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Speaker 4: longer term?

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Speaker 8: I think, guys, investors, you always can have some revisionist

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Speaker 8: history sometimes and so I'm sure we were always extremely

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Speaker 8: confident in the company. But look, I mean, I think

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Speaker 8: there's just been multiple points of inflection for the business,

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Speaker 8: and so I think there's high confidence that NASA really

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Speaker 8: we needed launch capacity to come back to the state.

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Speaker 8: So it was an understandable bet back in the day

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Speaker 8: when my two partners were at Founders Fund in one

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Speaker 8: of the early investment in the company. When we continue

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Speaker 8: to invest when what the Seven Ventures was formed two ten,

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Speaker 8: twenty eleven onward and inve in the company every single

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Speaker 8: year for sixteen years, I think the bet still remain

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Speaker 8: the same, which was fundamentally.

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Speaker 2: After they nail launch.

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Speaker 8: After the Nail reusability, you then were making a future

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Speaker 8: bet on Starlink, which was unclear, but the technology was

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Speaker 8: proven and in just a couple of years that business

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Speaker 8: went from zero dollars in revenue to over eleven billion

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Speaker 8: dollars in revenue and the largest constellation. I think you're

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Speaker 8: seeing a similar inflection point now where you're betting on starship,

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Speaker 8: you're betting on data centers in space, and you have

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Speaker 8: early data and indications that many investors, including ourselves, are

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Speaker 8: extremely confident in, and I think other people will see

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Speaker 8: that same execution. That's basics is historically they're going to

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Speaker 8: continue to do in the future.

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Speaker 2: They're doing this IPO. They need capital.

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Speaker 5: That's why you know he could in the end he

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Speaker 5: got there when musc was speaking to Jamie Diamond, Well,

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Speaker 5: we need capital.

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Speaker 2: How do you expect them to deploy?

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Speaker 5: That is a completely separate question, right The thing that's

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Speaker 5: missing in their perspectus is where the Capex plans. What

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Speaker 5: do you see happening in the first instance, Christian, I.

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Speaker 8: Think the company has been pretty consistent publicly and talking

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Speaker 8: about of their plans. You know, Brett Johnson just did

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Speaker 8: a great interview with the friend of ours of the

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Speaker 8: firm having Makavin Baker, which was great and they talked

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Speaker 8: a lot about one the infrastructures build out data centers,

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Speaker 8: I think terrestrially, and you see with XAI, you know

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Speaker 8: a lot of the Capex investments for that young company

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Speaker 8: over the last couple of years that investors have been

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Speaker 8: trying to understand. And then obviously data centers in space

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Speaker 8: is going to be a huge CAPEX investment, their continued

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Speaker 8: investment starship development. But for the most part, I would

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Speaker 8: say it's going to be heavily focused on data centers

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Speaker 8: within the XAI business because.

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Speaker 4: That almost was what shops everyone right head in the

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Speaker 4: S one the total addressable market more than twenty eight

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Speaker 4: trillion dollars was like enterprise application.

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Speaker 3: It was AI was really where a lot of this

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Speaker 3: is coming from.

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Speaker 8: Yeah, absolutely, I think the company really sees that business

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Speaker 8: line being a massive opportunity and quite frankly, if you

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Speaker 8: look at their advantages going after that, it's fundamentally driven

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Speaker 8: by cost structure. Right, they have infrastruts, they have a platform,

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Speaker 8: they can deliver capabilities at a lower costs and get

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Speaker 8: to scale that other people can't. And I think one

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Speaker 8: of the great touch points for that is if you

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Speaker 8: look at their Classes one and two data centers and

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Speaker 8: you look at the business that they just launch on

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Speaker 8: the compute side, they're giving you signal that terrestrially this

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Speaker 8: can be a massive business. So in orbit, it will

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Speaker 8: be a much much larger one. They're on a twenty

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Speaker 8: six billion dollar run rate for their interrestrial compute business

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Speaker 8: and those are just two deals within a month. Imagine

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Speaker 8: where this business is going to be in ten years.

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Speaker 5: I think there are questions from a lot of investors

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Speaker 5: will hold on, why aren't you using that capacity for

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Speaker 5: your own models, either training or on inference, and we

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Speaker 5: will get to that. Christian Garrett, partner at one three

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Speaker 5: to seven stays with us. One quick note, look at

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Speaker 5: shares of rocket Lab actually down now about six percent.

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Speaker 5: That was selling everywhere right when we started to get

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Speaker 5: those indications of SpaceX. However, it was up in the

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Speaker 5: pre market. Nasdak announced it will be one of the

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Speaker 5: five companies joining the Nasdaq one hundred index on June

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Speaker 5: twenty second, And obviously like highly analogous with SpaceX, but

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Speaker 5: the distant, small number two launch provider in the United

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Speaker 5: States right now, and now.

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Speaker 4: We go back to the number one because coming up

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Speaker 4: SpaceX is launching onto the public markets. But it's about

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Speaker 4: far more than rockets. So we're just talking. We're going

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Speaker 4: to delve ever more into this AI growth story.

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Speaker 3: This is bloombg Tech welcome back.

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Speaker 4: All in on this record SpaceX IPO, which we understand

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Speaker 4: the shares are indicated to open at one hundred and

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Speaker 4: sixty dollars per share, that is nineteen percent above the

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Speaker 4: IPO price. Many Singh is our global head of tech

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Speaker 4: research bloomg Intelligence, and he joins us along with Christian

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Speaker 4: Garrett from one three seven Ventures, who has been investing

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Speaker 4: round after.

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Speaker 3: Round, and SpaceX from the venture side.

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Speaker 4: Mandy, you're out with new research stating that xai could

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Speaker 4: soon dominate SpaceX's sales by the end of the year.

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Speaker 3: This is an AI company. Walk us through.

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Speaker 9: You're thinking, yeah, I think the two recent deals and

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Speaker 9: Tropic and Google. I mean they add almost twenty six

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Speaker 9: billion dollars in recurring revenue, and we know cloud is

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Speaker 9: a very high, stable margin business and so this is

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Speaker 9: no different. You know, they have become a neo cloud

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Speaker 9: AI infrastructure player overnight, and no one really saw this

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Speaker 9: coming because the focus was clearly on the space launch

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Speaker 9: business and the starlink business. But I think the recurring

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Speaker 9: revenue gives them a lot of stability in terms of

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Speaker 9: driving that top line growth, and they're showing a lot

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Speaker 9: of capex sufficiency. That's the other aspect about what they've

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Speaker 9: done here.

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Speaker 5: So team, there's a discrepancy here, right. So Christian and

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Speaker 5: the team at one three seven started investing when this

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Speaker 5: was about reasonability and rockets. The pitch for this IPO

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Speaker 5: is a future where the entire TAM basically twenty six

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Speaker 5: point five trillion is enterprise AI. Your thesis is based

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Speaker 5: on them being a neocloud running out capacity. When does

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Speaker 5: GROC start making money? When do the models become valuable?

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Speaker 9: So that's where I think if they close the Cursor

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Speaker 9: deal within the first thirty days, I mean that's huge

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Speaker 9: in terms of improving rock model and coding agent is

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Speaker 9: the real success story when you think about llms. That's

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Speaker 9: where every frontier lab is making money. Guess what Cursor

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Speaker 9: is the top asset outside of the frontier labs when

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Speaker 9: it comes to coding agents. So a huge acquisition. I

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Speaker 9: think they will close it and that will really beef

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Speaker 9: up you know the grock side of things where it's

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Speaker 9: mostly consumer subscriptions and we know that's not the high

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Speaker 9: growth drivers. It has to be Cursor.

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Speaker 4: I mean, Christian go up through the thinking for us

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Speaker 4: because initially you need and reaction might be why.

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Speaker 3: Have they got spare capacity from that.

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Speaker 2: That was kind of my point.

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Speaker 4: Compute, if it's not being put and deployed into groquai,

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Speaker 4: will they be able to have more and more to

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Speaker 4: sell to Athropic, to Google and others, or they get's

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Speaker 4: not using it themselves.

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Speaker 8: One of the fascinating things about the company is actually

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Speaker 8: the speed that they've gotten this capacity of, and that

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Speaker 8: changes the underwriting here. If you look at Colossus one

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Speaker 8: and two, some of the fastest data centers built right

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Speaker 8: within the ecosystem for these kind of neoclouds focused on

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Speaker 8: AI compute. Colossus three obviously a project that's coming online,

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Speaker 8: and so I do think that what you're going to

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Speaker 8: see is that they build these data centers faster, cheaper,

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Speaker 8: and that gives them sphare capacity on the older ones

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Speaker 8: to be able to offer it for the hyperscalar business.

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Speaker 8: And then companies like Cursor, which obviously the acquisition probably

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Speaker 8: closes after the listing, and then the Grock models will

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Speaker 8: give them their own kind of first part of the

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Speaker 8: enterprise AI offerings that they can use that compute for.

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Speaker 8: And I think a lot has publicly said that they

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Speaker 8: want to work with their partners, you know, if demand

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Speaker 8: drastically increases, they may take some of that capacity back

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Speaker 8: the older capacity. If you demand continues a scale, but

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Speaker 8: they build capacity at a similar rate, then there's more

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Speaker 8: than enough to go around for everyone. I think once again,

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Speaker 8: it's just the company realizing what are their inherent advantages

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Speaker 8: and it's really building infrastructure, and so I think that's

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Speaker 8: fundamentally the that you want to make is can they

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Speaker 8: build infrastructure, can they vertically integrate.

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Speaker 2: And cut costs?

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Speaker 8: And does that give them some advantage on these huge markets?

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Speaker 5: If you look inside the tin can and where the

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Speaker 5: tin cans are a lot of differences between Colossus one

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Speaker 5: and Colossus two and three. Bring it a bit more

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Speaker 5: about that later, what happens next for the company. And

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Speaker 5: you know, if you're high up the cap table as

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Speaker 5: a VC that's been on the long journey, there's a

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Speaker 5: lot of daylight between present day and the future. It's

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Speaker 5: still all predicated on Starship working and being reusable.

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Speaker 2: How much do you think about.

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Speaker 8: That, Yeah, Starship's a huge piece of the equation. It's

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Speaker 8: what unlocks you know, the Version three satellites for Starlink.

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Speaker 8: It's what helps obviously unlock and be able to launch

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Speaker 8: data centers in space. It's what gets to the Moon,

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Speaker 8: is what gets the Mars. It's a very important piece

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Speaker 8: to the platform. The businesses you see if you look

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Speaker 8: at Starlink has just been built on the Falcon nine platform, right,

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Speaker 8: if you look at their AI compute business.

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Speaker 2: That's terrestrial.

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Speaker 8: So there's a lot of scale for the business on

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Speaker 8: just where they are today with the current sets of

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Speaker 8: launch capabilities. But Starships is a huge a huge driver

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Speaker 8: for that, and quite frankly, I think it's one of

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Speaker 8: these things that is as an American and I think

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Speaker 8: for everyone around the world, that you want to root

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Speaker 8: for because SpaceX is the launch provider for the entire world. Right,

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Speaker 8: most of the world has works with them, and they

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Speaker 8: are all on the same boat of really wanting this

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Speaker 8: company to succeed because of what they've unlocked for I

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Speaker 8: think the country here in the States and on our

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Speaker 8: allies as well. By bringing launch capacity back, Starship's going

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Speaker 8: to take that to a next level where I think

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Speaker 8: it's going to unlock not just new opportunities in new markets,

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Speaker 8: but also help more and more businesses be formed in space.

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Speaker 8: You know, the Falcon nine platform led to companies like

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Speaker 8: Varda being formed. What happens when Starship, you know, reaches

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Speaker 8: the kind of scale and capacity that SpaceX is targeting.

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Speaker 8: What kind of businesses could be launched?

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Speaker 10: Then?

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Speaker 6: Right?

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Speaker 2: We have no idea?

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Speaker 8: Right, maybe instead of venture backed businesses, it turns out

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Speaker 8: you can have small businesses and small business owners be

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Speaker 8: able to build businesses in space.

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Speaker 2: This is a totally new world that we're entering in.

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Speaker 3: This is an ecosystem.

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Speaker 4: This is maybe fueled and more angel investing, more venture

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Speaker 4: capital investing, but more founders as well.

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Speaker 3: But Mande the risks here?

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Speaker 4: What should an investor keep in mind as we await

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Speaker 4: the first trade?

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Speaker 9: I mean, look, the valuation is already likely to exceed

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Speaker 9: two trillion. So when I see that kind of market cap,

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Speaker 9: even with the triple digit growth that I am baking

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Speaker 9: in for the XAI side of things, I can't see

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Speaker 9: you know how that you know, one point five trillion

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Speaker 9: combined SpaceX and starlink valuation can be justified if my

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Speaker 9: numbers for XAI are closed through you know, three to

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Speaker 9: four hundred billion dollars with the growth rates. So I

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Speaker 9: just find the valuation to be quite rich at this level.

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Speaker 5: A lot of people I know that are already on

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Speaker 5: the cap tables say they're thinking about the evaluation in

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Speaker 5: twenty thirty or twenty fifty, and they work backwards. Mandeep

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Speaker 5: Singh Bloomberg Intelligence leads our research of technology. Christian Garrett

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Speaker 5: Investment Partner at one three seven, one of the early

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Speaker 5: and durable investors on the SpaceX cap table.

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Speaker 2: Coming up.

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Speaker 5: SpaceX's IPO marks one of the most significant wind pools

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Speaker 5: in bention capital history. We're going to discuss who the

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Speaker 5: big winners and the big names on that cap table are.

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Speaker 3: Character waiting with baited breath. But as we go to break,

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Speaker 3: here's actually a.

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Speaker 4: Live look at what's really happening right here, right now.

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Speaker 4: A panel Chevron CEO Mike Worsty there see, speaking with.

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Speaker 3: Amory Hold and Vern Houston follow along my lifego.

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Speaker 9: The supply was.

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Speaker 3: Shut off and so that's where you saw differentials getting

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Speaker 3: very wide.

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Speaker 2: But subsequently you know you've got supplied.

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Speaker 3: Some of the venture firms that are back SpaceX.

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Speaker 4: Are set to earn tens of billions of dollars in

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Speaker 4: returns today. They include founders Fund and recent Horowitze Koa Capital.

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Speaker 4: Brinberg's Ventures reporter Rebecca Torrance joins us now. I mean

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Speaker 4: it's paper money, but it's big money.

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Speaker 3: It's huge money.

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Speaker 11: And I think one of the most interesting things about

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Speaker 11: this is that not just SpaceX's early backers are going

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Speaker 11: to make a huge wind fall off of this, but

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Speaker 11: even some of.

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Speaker 3: The late ones as well.

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Speaker 11: So so Koya and Reeson Horowitz both came in fairly

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Speaker 11: late relative to the entire life cycle of this company,

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Speaker 11: you know, the multi decade history, and yet stand to

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Speaker 11: make tens of billions of dollars off of this IPO.

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Speaker 11: Of course, the same is true for some of its

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Speaker 11: early backers as well, and long time eland Musk allies,

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Speaker 11: including Valor equity partners and founders fund.

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Speaker 5: Yeah, the founder's fund number, like you double check it

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Speaker 5: fifty billion plus because you know, I was on stage

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Speaker 5: with Tray Stevens the other day, one of the twelve

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Speaker 5: investing partners at the firm. I think they did six

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Speaker 5: hundred million over a many period of time. Like just

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Speaker 5: talk about those two bigger beasts, right, So.

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Speaker 11: I mean, I think it is it's really fascinating to

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Speaker 11: see how Musk's early allies continued to back him. Of course,

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Speaker 11: you know, across the lifetime of this company. First investments

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Speaker 11: around two thousand and eight, two thousand and nine, and

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Speaker 11: of course has been many years since then. Some of

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Speaker 11: these were folks back from the PayPal days, for example

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Speaker 11: Peter Thiel and you know early investors that believes in

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Speaker 11: musk and it's base x before the space economy really

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Speaker 11: took off.

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Speaker 5: For Indreacing, this would be the biggest return in the

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Speaker 5: firm's history doing both Rebecca Torrent's top job, Thank you

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Speaker 5: very much. What does this IPO mean for other AI

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Speaker 5: IPOs in the pipeline? Goldman SAX President and COO John

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Speaker 5: Waldron thinks it's a step closer to a wave of listings.

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Speaker 12: Seventy five billion dollar ipo, the largest in history. I

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Speaker 12: think it presages the beginning of a pretty sizable wave

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Speaker 12: of IPOs, which we're excited about. I also think it

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Speaker 12: shows you that the capital markets, led by the US

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Speaker 12: capital markets, but the global capital markets, are demonstrating a

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Speaker 12: willingness to finance this AI infrastructure build and this building space,

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Speaker 12: which is quite exciting.

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Speaker 5: Pegas is founder in CEO and Isthuisman agrees, and it's

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Speaker 5: invested in all three companies, SpaceX, Open AI and Anthropic.

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Speaker 2: How difficult is that to pick the winner. It is

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Speaker 2: not that difficult.

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Speaker 13: Actually, I started investing in Spaceics first, and you know,

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Speaker 13: I had a fantastic time, and you know, we continued

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Speaker 13: seeing the growth of the Spacics. It was a space

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Speaker 13: exploration company, and then started doing good in Sterling and

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Speaker 13: Sterlink started expanding, and then came in open Ai and

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Speaker 13: Nthropy and they were all you know, connected to each

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Speaker 13: other in some sense. When Spacics started blooming, I think,

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Speaker 13: you know, we were feeling confident enough. When OpenAI came in,

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Speaker 13: we invested in OpenAI and then we followed it anthrofit.

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Speaker 13: So it happened one after another.

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Speaker 3: And there's room for all three.

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Speaker 4: Look, I've spoken to Thrive when they raised their last round,

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Speaker 4: and they are ride or dies, just open Ai. They

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Speaker 4: don't believe in spreading your bets like this. But is

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Speaker 4: it okay that they're all kind of in on the

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Speaker 4: same business model?

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Speaker 13: Here they are, But you know, AI is such a

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Speaker 13: big market. I mean, there's so much opportunity. When we

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Speaker 13: looked at OpenAI and they were doing good, at the

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Speaker 13: same time, we found that, you know, Anthropy was focusing

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Speaker 13: on more enterprise level, you know AI, so they're more

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Speaker 13: focusing on the business to business side. They were more

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Speaker 13: research oriented, so we felt that they have a different flavor.

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Speaker 13: So you know, you like vanilized the same time you

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Speaker 13: like chocolate as well. So you know, we kind of

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Speaker 13: like invested in two different types of you know, AI

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Speaker 13: in productor we're also interested in XAI. So you know,

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Speaker 13: we thought that we'll actually take part in every single

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Speaker 13: angles of the domains that this companies are focusing on.

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Speaker 4: I think what's really interesting here, Ed, and I'm pranis

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Speaker 4: to you is that, like if you think about Thrive,

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Speaker 4: they're in SpaceX too, but at the time they weren't

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Speaker 4: thinking of SpaceX as an AI company. Yeah, this has

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Speaker 4: become quite a link power of play fore long.

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Speaker 5: Yeah, and it's you know, Christian Garrett from one three

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Speaker 5: seven Ventures is with us and we're going to speak

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Speaker 5: to him later in the hour.

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Speaker 2: Again.

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Speaker 5: You know, the idea here is that the thesis is

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Speaker 5: constantly evolving with SpaceX.

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Speaker 2: You know.

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Speaker 5: But when I read the prospectus, the tam number, the

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Speaker 5: story that they're pitching investors of the future, I bet

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Speaker 5: you it's very similar to what Anthropic and Open AI

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Speaker 5: right in their perspectives. That's difficult to market it is.

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Speaker 13: But you know, if you look at SpaceX, they're you know,

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Speaker 13: I when I look at SPACEF I look at it

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Speaker 13: as an AI energy and connectivity infrastructure conclom erate. You know,

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Speaker 13: if you look at Starlink, I see the potential is huge.

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Speaker 13: We have only ten million subscribed ten twelve million subscribers

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Speaker 13: of space starlink right now. If you look at the

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Speaker 13: number of Internet users in the world, there's six billion

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Speaker 13: people using Internet and everybody is moving to sterling. So

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Speaker 13: if you look at that way that Starlink has a

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Speaker 13: huge potential. Then you look at their plan for what

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Speaker 13: they're trying to do. They're trying to create AI infrastructure

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Speaker 13: in the orbit. They can do it because they have

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Speaker 13: launch capability and they can do it at a minimum cost.

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Speaker 13: So if you look at SpaceX, I mean they're playing

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Speaker 13: a different tame. They're not only you know, thinking that

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Speaker 13: they're going to become an AI company, but they're an

440
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Speaker 13: infrastructure company. Down the line, you'll be able to help

441
00:21:03,480 --> 00:21:06,360
Speaker 13: open AI and anthropy as well, to be some kind

442
00:21:06,359 --> 00:21:09,840
Speaker 13: of the backbone of the whole software AI development you're

443
00:21:09,840 --> 00:21:10,440
Speaker 13: seeing right now.

444
00:21:10,520 --> 00:21:13,800
Speaker 4: Yes, briefly, SpaceX is one of your most significant positions

445
00:21:14,080 --> 00:21:16,199
Speaker 4: valued it over a billion dollars as it stands, and

446
00:21:16,320 --> 00:21:18,480
Speaker 4: is do you hold it for the long term?

447
00:21:19,200 --> 00:21:22,919
Speaker 13: I will hold it, actually, and I feel very positive

448
00:21:22,960 --> 00:21:27,440
Speaker 13: that the starlink usage is going to grow significantly. Every

449
00:21:27,440 --> 00:21:31,200
Speaker 13: single car, every single plane, every single person in the world,

450
00:21:31,720 --> 00:21:34,880
Speaker 13: every big portion of the six billion Internet users are

451
00:21:34,920 --> 00:21:38,399
Speaker 13: also going to come under starlink usage. And I feel

452
00:21:38,400 --> 00:21:40,920
Speaker 13: that this company will grow at least thirty percent each

453
00:21:41,000 --> 00:21:43,920
Speaker 13: year from here on for the next ten twenty years.

454
00:21:44,040 --> 00:21:45,760
Speaker 13: And I want to hold it for the long term.

455
00:21:45,880 --> 00:21:48,840
Speaker 4: Pegas has fouan a CEO, and he Swusamon fantastic to

456
00:21:48,840 --> 00:21:50,040
Speaker 4: have you staying up late for us.

457
00:21:50,240 --> 00:21:50,560
Speaker 2: You are.

458
00:21:51,280 --> 00:21:54,320
Speaker 4: We just get the latest indications of prices. SpaceX shares

459
00:21:54,400 --> 00:21:56,720
Speaker 4: indicated to open ed at one hundred and fifty nine

460
00:21:56,760 --> 00:22:01,120
Speaker 4: dollars ninety cents. That's eighteen percent above its IPO price.

461
00:22:01,200 --> 00:22:05,320
Speaker 4: Coming up, we're delving evermore into spaces is Blockbuster Wall

462
00:22:05,359 --> 00:22:08,280
Speaker 4: Street debut critical test for the company of Elon Musk

463
00:22:08,600 --> 00:22:11,040
Speaker 4: and what is therefore he worth more than a trillion

464
00:22:11,080 --> 00:22:13,360
Speaker 4: dollars if we hold onto this number, you've got the dilute.

465
00:22:13,240 --> 00:22:15,439
Speaker 5: Yeah, no, he would hear a trillion s status if

466
00:22:15,440 --> 00:22:17,120
Speaker 5: it was one hundred and thirty eight dollars a share,

467
00:22:17,200 --> 00:22:21,120
Speaker 5: so at one p ninety fully diluted, the company's worth

468
00:22:21,119 --> 00:22:23,560
Speaker 5: two point two trillion, which say it out loud again,

469
00:22:23,640 --> 00:22:26,200
Speaker 5: two point two trillion. Maybe we'll see there's a lot

470
00:22:26,240 --> 00:22:29,280
Speaker 5: more to come. State of play. It's not yet trading.

471
00:22:29,560 --> 00:22:33,040
Speaker 5: These are indications that we're getting ahead of the start

472
00:22:33,080 --> 00:22:35,959
Speaker 5: of trading on the Nasdaq in New York City and

473
00:22:36,000 --> 00:22:38,760
Speaker 5: in Texas where Elon musk folt this morning. And by

474
00:22:38,800 --> 00:22:42,199
Speaker 5: the way, markets are on a rocket ride today. A

475
00:22:42,240 --> 00:22:44,680
Speaker 5: lot of volatility and if you look at different assets.

476
00:22:44,840 --> 00:22:47,000
Speaker 5: Part of that story is I think some people are

477
00:22:47,000 --> 00:22:49,560
Speaker 5: trying to work out how they have some liquidity to

478
00:22:49,600 --> 00:22:51,480
Speaker 5: play the biggest side in history.

479
00:22:51,840 --> 00:22:54,520
Speaker 3: Enough puns that Lovelow not nearly enough puns bring them on.

480
00:22:54,440 --> 00:23:00,560
Speaker 2: Says Bloomberg Tech ely.

481
00:23:02,960 --> 00:23:06,200
Speaker 5: Welcome back to Bloomberg Tech, SpaceX and the biggest IPO

482
00:23:06,320 --> 00:23:11,000
Speaker 5: in history. It's trading debut is imminent. First, the markets.

483
00:23:11,080 --> 00:23:13,000
Speaker 5: We're now up almost a percentage point on the NASAK

484
00:23:13,040 --> 00:23:15,399
Speaker 5: one hundred, but we have swung between gains and losses

485
00:23:15,400 --> 00:23:17,439
Speaker 5: all morning, and there's a lot of evidence out there,

486
00:23:17,600 --> 00:23:20,840
Speaker 5: along with geopolitical risk that people are searching for a

487
00:23:20,880 --> 00:23:23,040
Speaker 5: plan on how they are going to play the IPO

488
00:23:23,080 --> 00:23:25,639
Speaker 5: when trading starts if they didn't get an allocation on

489
00:23:25,680 --> 00:23:29,359
Speaker 5: the institution or the retail side. That's Part one, Part two.

490
00:23:29,720 --> 00:23:33,600
Speaker 5: Elon Musk speaking earlier this morning at Star Based, Texas.

491
00:23:34,359 --> 00:23:36,640
Speaker 2: There are always problems on Earth. There are always problems

492
00:23:36,640 --> 00:23:36,840
Speaker 2: on Earth.

493
00:23:36,880 --> 00:23:39,480
Speaker 6: There are always things that we wish to be better,

494
00:23:39,560 --> 00:23:40,560
Speaker 6: that we want to solve here.

495
00:23:40,480 --> 00:23:42,600
Speaker 2: On Earth, and we should solve them.

496
00:23:42,760 --> 00:23:45,399
Speaker 6: But there also have to be things that get you

497
00:23:45,480 --> 00:23:49,240
Speaker 6: excited about the future, that make you glad to wake

498
00:23:49,359 --> 00:23:52,400
Speaker 6: up in the morning because you can't wait to see

499
00:23:52,440 --> 00:23:57,440
Speaker 6: what happens next. And that's the future that SpaceX wants

500
00:23:57,480 --> 00:23:57,920
Speaker 6: to bring to.

501
00:23:57,880 --> 00:24:01,880
Speaker 4: You, and the market can't wait to see what happens

502
00:24:01,920 --> 00:24:05,040
Speaker 4: with the price indicated to make it the sixth most

503
00:24:05,119 --> 00:24:08,240
Speaker 4: valuable player on the Nasdaq one hundred as and when

504
00:24:08,240 --> 00:24:10,200
Speaker 4: it joins that benchmark, you hire an and you're at

505
00:24:10,240 --> 00:24:10,760
Speaker 4: the Nasdaq.

506
00:24:10,800 --> 00:24:11,439
Speaker 3: What are you watching?

507
00:24:11,920 --> 00:24:14,719
Speaker 7: It seems like we're getting closer and closer to that

508
00:24:14,880 --> 00:24:18,399
Speaker 7: first trade, Caroline. You've gotten a series of indications and

509
00:24:18,480 --> 00:24:22,359
Speaker 7: they've continued to edge slightly lower as they continue to

510
00:24:22,440 --> 00:24:26,119
Speaker 7: work through the price discovery process. The latest indication is

511
00:24:26,240 --> 00:24:30,159
Speaker 7: one hundred and five fifty five dollars a share, that

512
00:24:30,359 --> 00:24:34,200
Speaker 7: is up fifteen percent from the one hundred and thirty

513
00:24:34,200 --> 00:24:38,320
Speaker 7: five dollars IPO price and implies a valuation of two

514
00:24:38,520 --> 00:24:41,920
Speaker 7: trillion dollars. That means SpaceX would still rank among the

515
00:24:41,920 --> 00:24:46,000
Speaker 7: most valuable companies in the world, more valuable than the

516
00:24:46,160 --> 00:24:49,560
Speaker 7: likes of Meta, Saudi Aramco, and even Tesla itself.

517
00:24:49,840 --> 00:24:52,720
Speaker 5: Blue Mix you a hire and and back throughout the hour,

518
00:24:52,880 --> 00:24:56,040
Speaker 5: every blow by blow from the Nasdaq. SpaceX also recently

519
00:24:56,080 --> 00:25:00,679
Speaker 5: unveiled a detailed look at an AI data center satellite

520
00:25:00,760 --> 00:25:03,719
Speaker 5: SpaceX plans to build. It's a big development in the

521
00:25:03,760 --> 00:25:07,520
Speaker 5: final days that drove this historic IPO. The record breaking

522
00:25:07,560 --> 00:25:11,360
Speaker 5: seventy five billion dollar market debut is imminent. Bloomberg's chief

523
00:25:11,359 --> 00:25:14,080
Speaker 5: Space correspondent, Lauren Grushes with us and still with us.

524
00:25:14,200 --> 00:25:18,560
Speaker 5: Christian Garrett One threw seven Manager a Ventures managing partner,

525
00:25:18,680 --> 00:25:21,760
Speaker 5: investing partner, one of the sort of long term investors

526
00:25:21,920 --> 00:25:24,840
Speaker 5: on the cap table at SpaceX as a private company

527
00:25:24,880 --> 00:25:26,119
Speaker 5: and now as a public company.

528
00:25:26,400 --> 00:25:28,920
Speaker 2: Lauren out of this world right.

529
00:25:29,080 --> 00:25:32,560
Speaker 5: The whole point here is that SpaceX wants to get

530
00:25:32,600 --> 00:25:36,000
Speaker 5: Starship right so it can deploy data centers in the

531
00:25:36,040 --> 00:25:38,760
Speaker 5: form factor of a satellite. We have basically what a

532
00:25:38,840 --> 00:25:40,960
Speaker 5: renderings that Elon mush shared with us the other day

533
00:25:42,000 --> 00:25:44,639
Speaker 5: explain the basics of this. I know you don't have

534
00:25:44,680 --> 00:25:47,200
Speaker 5: a degree in astrophysics, but well, I've.

535
00:25:47,040 --> 00:25:49,280
Speaker 14: Been covering the company long enough. I hopefully I've picked

536
00:25:49,320 --> 00:25:52,320
Speaker 14: up some stuff along the way. No, but you said it.

537
00:25:52,359 --> 00:25:55,600
Speaker 14: Starship is key to all of this, right, So, originally

538
00:25:55,840 --> 00:25:58,119
Speaker 14: it was debuted as the vehicle that is going to

539
00:25:58,160 --> 00:26:02,159
Speaker 14: fulfill SpaceX and Eli Musk's dream of sending people to Mars,

540
00:26:02,359 --> 00:26:04,240
Speaker 14: and that's still the goal, but in the same time

541
00:26:04,240 --> 00:26:06,600
Speaker 14: they're also putting all of their hopes and dreams on

542
00:26:06,640 --> 00:26:10,160
Speaker 14: this rocket as well. It's going to be responsible for

543
00:26:10,400 --> 00:26:14,200
Speaker 14: launching the much larger, upgraded Starlink satellites, and then also

544
00:26:14,440 --> 00:26:18,000
Speaker 14: it'll be crucial for sending humans to the Moon for NASA,

545
00:26:18,320 --> 00:26:20,879
Speaker 14: and then of course it'll be the key that sends

546
00:26:20,920 --> 00:26:24,120
Speaker 14: these data center satellites into space. So that definitely has

547
00:26:24,160 --> 00:26:26,359
Speaker 14: to work, and it's had a bit of a rocky

548
00:26:26,880 --> 00:26:29,159
Speaker 14: road of development up until now. It's also meant to

549
00:26:29,160 --> 00:26:32,760
Speaker 14: be the first fully reusable rocket that's ever developed. I mean,

550
00:26:32,760 --> 00:26:35,560
Speaker 14: that is the holy grail of spaceflight. So if they

551
00:26:35,560 --> 00:26:38,640
Speaker 14: can get it working, that will be key to all

552
00:26:38,680 --> 00:26:41,679
Speaker 14: of the success. But that you know, win that will happen,

553
00:26:42,000 --> 00:26:44,560
Speaker 14: how that will happen if things get descoped along the way.

554
00:26:44,600 --> 00:26:47,080
Speaker 14: I think that's what we will be following now as

555
00:26:47,119 --> 00:26:48,440
Speaker 14: SpaceX as a public.

556
00:26:48,200 --> 00:26:50,760
Speaker 4: Company, and we follow the price indications. SpaceX shares now

557
00:26:50,840 --> 00:26:53,359
Speaker 4: indicated to open one hundred and fifty dollars as we stand,

558
00:26:53,359 --> 00:26:57,560
Speaker 4: eleven percent above is IPO pricing. Christian, that's an enormous

559
00:26:57,600 --> 00:27:00,760
Speaker 4: win for your venture fund and for the very early

560
00:27:00,760 --> 00:27:02,600
Speaker 4: bets you took in this company. Does it give you

561
00:27:02,640 --> 00:27:03,520
Speaker 4: any anxiety that the.

562
00:27:03,480 --> 00:27:05,440
Speaker 3: Business model just gets saying bigger and bigger and bigger.

563
00:27:05,440 --> 00:27:07,600
Speaker 4: I mean, talk to us about the orbital data centers

564
00:27:07,600 --> 00:27:10,119
Speaker 4: and how swiftly you really think that can get going

565
00:27:10,440 --> 00:27:14,480
Speaker 4: and almost them piece by piece, stress testing.

566
00:27:14,480 --> 00:27:15,400
Speaker 3: The potential of that.

567
00:27:15,880 --> 00:27:18,560
Speaker 8: Well, you know, I think historically the company has always

568
00:27:18,560 --> 00:27:23,000
Speaker 8: set very very aggressive and ambitious timelines and goals, and

569
00:27:23,680 --> 00:27:26,159
Speaker 8: at times they've exceeded them. At times things take a

570
00:27:26,200 --> 00:27:29,119
Speaker 8: little longer, but they've always delivered on what the ultimate

571
00:27:29,240 --> 00:27:31,960
Speaker 8: goal and outcome was, and whether that was getting to

572
00:27:32,080 --> 00:27:34,639
Speaker 8: partial re usability, whether that was building and launching the

573
00:27:34,640 --> 00:27:40,600
Speaker 8: Starlink constellation starships, development timelines, figuring out the physics engineering

574
00:27:40,640 --> 00:27:43,280
Speaker 8: around the Raptor engine, and so this is just another

575
00:27:43,320 --> 00:27:46,560
Speaker 8: example where they've in my opinion, some of the best

576
00:27:46,560 --> 00:27:49,520
Speaker 8: engineering teams in the world are at this company, and

577
00:27:49,560 --> 00:27:51,959
Speaker 8: they have high conviction on their ability to deliver on this,

578
00:27:52,080 --> 00:27:54,760
Speaker 8: and they set timelines to start launching these things within

579
00:27:54,840 --> 00:27:58,600
Speaker 8: the next couple of years. And so I think historically

580
00:27:59,000 --> 00:28:01,080
Speaker 8: the data has always shown the company is always right,

581
00:28:01,160 --> 00:28:03,119
Speaker 8: and sometimes they're early, sometimes they are late, but they

582
00:28:03,119 --> 00:28:04,720
Speaker 8: are always righting these things. And I think that's a

583
00:28:04,720 --> 00:28:07,159
Speaker 8: fair bet to make again here, and I think we're

584
00:28:07,160 --> 00:28:09,520
Speaker 8: going to see fairly soon the build out start happening.

585
00:28:10,600 --> 00:28:13,320
Speaker 5: The plan is as early as twenty twenty eight for

586
00:28:13,440 --> 00:28:15,680
Speaker 5: orbital day center deployment that was in the prospectus. I

587
00:28:15,680 --> 00:28:18,200
Speaker 5: think what Christian's hinting at. But people phone me and say,

588
00:28:18,240 --> 00:28:21,000
Speaker 5: is they see it happening sooner? But it's highly analogous

589
00:28:21,040 --> 00:28:23,000
Speaker 5: with Starlink, So I think a lot of value Lauren,

590
00:28:23,000 --> 00:28:25,359
Speaker 5: if you just catch up the Blombotech audience on the

591
00:28:25,400 --> 00:28:28,520
Speaker 5: scale of Starlink today. That's not a space based data center,

592
00:28:28,920 --> 00:28:32,600
Speaker 5: but it shows their competence in deploying satellites in constellation

593
00:28:32,640 --> 00:28:33,119
Speaker 5: at scale.

594
00:28:33,240 --> 00:28:37,040
Speaker 14: Absolutely, And when SpaceX was first saying they were going

595
00:28:37,080 --> 00:28:39,560
Speaker 14: to do Starlink, with the numbers that they were saying,

596
00:28:39,560 --> 00:28:43,160
Speaker 14: I mean they had projected at first a twelve thousand

597
00:28:43,840 --> 00:28:47,920
Speaker 14: plus constellation and now they have over ten thousand satellites

598
00:28:48,040 --> 00:28:49,880
Speaker 14: working in orbit, and I think a lot of us

599
00:28:49,880 --> 00:28:51,840
Speaker 14: were kind of wondering how that was actually going to

600
00:28:51,840 --> 00:28:54,240
Speaker 14: play out. And then look, now they are operating this

601
00:28:54,360 --> 00:28:58,959
Speaker 14: massive system. They are the world's largest global satellite operator today.

602
00:28:59,200 --> 00:29:01,560
Speaker 14: So I think they do have that advantage in being

603
00:29:01,600 --> 00:29:04,560
Speaker 14: able to take the experience that they have from building

604
00:29:04,600 --> 00:29:07,440
Speaker 14: and operating that Starlink system and they will apply it

605
00:29:07,480 --> 00:29:10,120
Speaker 14: to this AI data center satellite. And that's and even

606
00:29:10,160 --> 00:29:13,040
Speaker 14: Elon Musk said when he unveiled that design for the

607
00:29:13,440 --> 00:29:16,160
Speaker 14: data center satellite is that he thinks it actually will

608
00:29:16,200 --> 00:29:19,200
Speaker 14: be easier to design for. I don't know about that necessarily.

609
00:29:19,240 --> 00:29:20,959
Speaker 14: I mean, if you look at those solar panels, those

610
00:29:21,000 --> 00:29:24,200
Speaker 14: are pretty big solar panels, and they've also talked about

611
00:29:24,440 --> 00:29:26,720
Speaker 14: launching up to one million satellites.

612
00:29:26,840 --> 00:29:27,560
Speaker 3: That is a lot.

613
00:29:27,840 --> 00:29:29,760
Speaker 14: Not saying it can't be done, but I do think

614
00:29:29,800 --> 00:29:34,520
Speaker 14: it does pose some engineering challenges, but as Gwynn said earlier,

615
00:29:34,960 --> 00:29:38,120
Speaker 14: SpaceX likes to tout that they just take the impossible

616
00:29:38,160 --> 00:29:38,960
Speaker 14: and they make it late.

617
00:29:39,480 --> 00:29:42,600
Speaker 5: Maybe the president's co SpaceX blooms Lauren Grush, thank you

618
00:29:42,760 --> 00:29:45,320
Speaker 5: very much. Christian Garrett of one three seven Ventures stays

619
00:29:45,360 --> 00:29:48,480
Speaker 5: with us. This is Bloomberg Tech, Friday, June twelfth, twenty

620
00:29:48,520 --> 00:29:52,200
Speaker 5: twenty six. SpaceX is IPO, the biggest in history. Trading

621
00:29:52,520 --> 00:29:56,240
Speaker 5: is imminent. SpaceX hasn't even started trading, and wool Street

622
00:29:56,440 --> 00:29:59,360
Speaker 5: is already publishing price targets and U Street Research quick

623
00:29:59,400 --> 00:30:01,720
Speaker 5: out the gate, initiating with a buy rating and a

624
00:30:01,800 --> 00:30:05,680
Speaker 5: one sixty five target price. The firm's valuation case leans

625
00:30:05,760 --> 00:30:08,960
Speaker 5: heavily on the businesses that are already making money in

626
00:30:09,000 --> 00:30:12,440
Speaker 5: space and how that cash gets funneled into AI.

627
00:30:12,720 --> 00:30:15,120
Speaker 2: Here's new streets. PF Feragu on Bloomberg Surveillance.

628
00:30:15,680 --> 00:30:18,160
Speaker 15: Space today is a lot of cash flow. It's very

629
00:30:18,200 --> 00:30:22,320
Speaker 15: cash generative. So telecom business is generating a lot of cash.

630
00:30:22,400 --> 00:30:24,600
Speaker 15: And if you have access to your own cash flow

631
00:30:25,120 --> 00:30:28,120
Speaker 15: in AI, you can buy your own infrastructure.

632
00:30:28,320 --> 00:30:30,320
Speaker 2: That makes it much cheaper for you. You don't have

633
00:30:30,400 --> 00:30:31,640
Speaker 2: to pay the margin.

634
00:30:33,000 --> 00:30:36,800
Speaker 4: Let's keep the SpaceX conversation going Nancy Tangler, CEO CIO

635
00:30:36,800 --> 00:30:39,480
Speaker 4: of Leff and Tangler Investments and independent but historically bullished

636
00:30:39,480 --> 00:30:40,680
Speaker 4: background mask of Tesla.

637
00:30:41,320 --> 00:30:42,280
Speaker 3: Do you want to.

638
00:30:42,160 --> 00:30:45,560
Speaker 4: Be buying SpaceX shares if they open one hundred and

639
00:30:45,600 --> 00:30:47,520
Speaker 4: fifty dollars as they're currently indicated to do so.

640
00:30:47,600 --> 00:30:51,920
Speaker 10: Nancy, Caroline, we are buying them at the open, and

641
00:30:52,240 --> 00:30:55,280
Speaker 10: it's not my preferred way of trading. I much rather

642
00:30:55,440 --> 00:30:59,920
Speaker 10: have gotten an allocation. We're using the analogy to Amazon

643
00:31:00,240 --> 00:31:04,680
Speaker 10: Public IPO in nineteen ninety seven. It was a company

644
00:31:04,680 --> 00:31:07,840
Speaker 10: that was impossible to value because there were no earnings,

645
00:31:07,880 --> 00:31:11,000
Speaker 10: only revenues, and this feels a lot more like that

646
00:31:11,120 --> 00:31:14,000
Speaker 10: than it does Meta. So we're interested in owning it

647
00:31:14,040 --> 00:31:17,120
Speaker 10: in our thematic portfolio, which has a theme of space,

648
00:31:17,320 --> 00:31:20,400
Speaker 10: and then also in our growth portfolio. So those are

649
00:31:20,440 --> 00:31:23,640
Speaker 10: the options that those are the places where we are

650
00:31:23,680 --> 00:31:24,040
Speaker 10: putting it.

651
00:31:25,320 --> 00:31:28,240
Speaker 5: Nancy, I wanted you to come on the program, and

652
00:31:28,440 --> 00:31:30,520
Speaker 5: I'm speaking so honest with the Bloembo Tech audience because

653
00:31:30,520 --> 00:31:34,920
Speaker 5: you're one of these investors of Tesla that gets access

654
00:31:34,960 --> 00:31:35,440
Speaker 5: to the company.

655
00:31:35,480 --> 00:31:35,560
Speaker 9: Right.

656
00:31:35,600 --> 00:31:39,200
Speaker 5: I'm thinking about when you were at the Robotaxi launch event.

657
00:31:39,960 --> 00:31:42,760
Speaker 5: Where do you stand. What is your thesis on the

658
00:31:42,800 --> 00:31:45,120
Speaker 5: combination of SpaceX with Tesla.

659
00:31:46,360 --> 00:31:49,840
Speaker 10: Oh yeah, so, Ed, I do believe that is going

660
00:31:49,880 --> 00:31:53,760
Speaker 10: to happen. I mean, Tesla already owned shares in SpaceX

661
00:31:53,800 --> 00:31:59,160
Speaker 10: through the XAI acquisition. That's the space SpaceX made. So

662
00:31:59,200 --> 00:32:02,440
Speaker 10: it's about a two billion dollar steak. It seems to

663
00:32:02,440 --> 00:32:05,920
Speaker 10: me to be just a beginning. And already SpaceX is

664
00:32:05,920 --> 00:32:09,200
Speaker 10: the most vertically integrated AI company if you think about

665
00:32:09,760 --> 00:32:11,760
Speaker 10: they have the capital, they've got the data, they've got

666
00:32:11,800 --> 00:32:15,600
Speaker 10: the large language models, they've got the hardware, the engineering talent,

667
00:32:15,680 --> 00:32:19,760
Speaker 10: the manufacturing talent. So we think it makes imminent sense

668
00:32:19,800 --> 00:32:22,440
Speaker 10: for them to combine with Tesla. And I don't know

669
00:32:22,480 --> 00:32:25,320
Speaker 10: if it's in twenty twenty seven or early twenty twenty eight,

670
00:32:25,560 --> 00:32:28,760
Speaker 10: but I think you'll begin to see evidence of a

671
00:32:28,800 --> 00:32:31,240
Speaker 10: tighter and tighter relationship as we move forward.

672
00:32:31,520 --> 00:32:35,000
Speaker 4: The public investor perspective, let's get the private investment perspective.

673
00:32:35,080 --> 00:32:37,040
Speaker 4: Christian Garret went through some venture, is still with us.

674
00:32:37,800 --> 00:32:40,240
Speaker 4: Do you think it makes strategic sense at least for

675
00:32:40,360 --> 00:32:41,960
Speaker 4: Tesla and SpaceX, comebine.

676
00:32:42,200 --> 00:32:44,520
Speaker 8: I think the businesses have obviously a lot of commonalities,

677
00:32:44,520 --> 00:32:47,960
Speaker 8: a lot of share projects, the Terrifat project being one example,

678
00:32:48,880 --> 00:32:50,920
Speaker 8: and so you know, obviously, I think it's a great

679
00:32:51,280 --> 00:32:54,560
Speaker 8: sort of discussion point to sort of theorize what would

680
00:32:54,600 --> 00:32:57,640
Speaker 8: happen to these companies integrated together. I think they have

681
00:32:57,680 --> 00:32:59,959
Speaker 8: a credible partnership as stands, and so in neither sent there,

682
00:33:00,200 --> 00:33:03,040
Speaker 8: I think it's super exciting the work that they're doing together,

683
00:33:03,120 --> 00:33:05,680
Speaker 8: and for that to happen, it's exciting. If it doesn't happen,

684
00:33:05,680 --> 00:33:09,320
Speaker 8: it's also exciting nonetheless, and both are obviously generational businesses.

685
00:33:09,920 --> 00:33:13,120
Speaker 5: We have live pictures from the Nasdaq. We believe that

686
00:33:13,200 --> 00:33:17,800
Speaker 5: the trading of SpaceX in the United States is imminent,

687
00:33:19,680 --> 00:33:22,040
Speaker 5: something that we've been discussing throughout the hour for actually

688
00:33:22,160 --> 00:33:25,880
Speaker 5: to be fair for like days, Nancy Tengler is, if

689
00:33:25,920 --> 00:33:28,320
Speaker 5: you've just put to one side the vision of the

690
00:33:28,360 --> 00:33:31,920
Speaker 5: future and the twenty six point five trillion AI tam

691
00:33:32,120 --> 00:33:35,600
Speaker 5: that SpaceX presented, how much does your team focus on

692
00:33:35,640 --> 00:33:38,280
Speaker 5: the here and now of their data center business or

693
00:33:38,320 --> 00:33:41,440
Speaker 5: neo cloud business that they've done with Anthropic and Google.

694
00:33:42,440 --> 00:33:44,960
Speaker 10: Yeah, I think it's important. By the way, I loved

695
00:33:44,960 --> 00:33:49,520
Speaker 10: what Christian just said. It's exciting either way. I also

696
00:33:49,640 --> 00:33:52,040
Speaker 10: love to headline on Bloomberg that said this company is

697
00:33:52,120 --> 00:33:56,920
Speaker 10: cheap on a price to Cosmo ratio. So I think

698
00:33:57,080 --> 00:33:59,480
Speaker 10: this is a name that is more of a narrative

699
00:33:59,560 --> 00:34:02,880
Speaker 10: name for us than it is valuation. Our thematic portfolio

700
00:34:02,920 --> 00:34:07,000
Speaker 10: does not focus on valuation. It focuses on obviously themes,

701
00:34:07,480 --> 00:34:10,480
Speaker 10: and so I don't know how you quantify some of this.

702
00:34:10,680 --> 00:34:14,600
Speaker 10: I think what's interesting is that the cash incinerator right

703
00:34:14,600 --> 00:34:18,200
Speaker 10: now is AI. But that is, as you just pointed out,

704
00:34:18,239 --> 00:34:21,400
Speaker 10: twenty six point five percent of the TAM of twenty

705
00:34:21,400 --> 00:34:25,440
Speaker 10: eight point five I'm sorry's twenty six point five trillion

706
00:34:26,160 --> 00:34:29,399
Speaker 10: of the twenty eight point five tams. So I think

707
00:34:29,440 --> 00:34:32,520
Speaker 10: you have to think about the data center business. It's

708
00:34:32,520 --> 00:34:37,480
Speaker 10: what excites us to a great extent. But Starship, you know,

709
00:34:37,520 --> 00:34:39,839
Speaker 10: as required as we know. I think they'll get there.

710
00:34:39,840 --> 00:34:41,880
Speaker 10: I have no doubt they'll get there. It's just a

711
00:34:41,960 --> 00:34:45,359
Speaker 10: question of when. So we're really buying the future when

712
00:34:45,400 --> 00:34:47,759
Speaker 10: we buy this company. In our time horizon is five

713
00:34:47,800 --> 00:34:48,839
Speaker 10: to ten years.

714
00:34:48,640 --> 00:34:50,200
Speaker 3: And you are buying at the open.

715
00:34:50,280 --> 00:34:53,160
Speaker 4: Nancy Tanger of Leafa Tenger Investments a joy to speak

716
00:34:53,160 --> 00:34:55,839
Speaker 4: with you today, Thank you very much. Indeed, look, we've

717
00:34:55,840 --> 00:34:58,120
Speaker 4: got to get to bloembgs Bailey Lipschaltz, who has been

718
00:34:58,200 --> 00:35:02,280
Speaker 4: driving the coverage of this IPO since we first got

719
00:35:02,520 --> 00:35:05,520
Speaker 4: the confidential filings, the actual filings, and now we wait

720
00:35:05,560 --> 00:35:06,200
Speaker 4: with baited breath.

721
00:35:06,200 --> 00:35:08,560
Speaker 3: We are but moments away from the opening trade, Bailey.

722
00:35:08,360 --> 00:35:11,120
Speaker 16: We are but moments away from a historic moment. And

723
00:35:11,160 --> 00:35:13,480
Speaker 16: it's going to be fascinating to see if we do

724
00:35:13,600 --> 00:35:16,439
Speaker 16: avoid a Facebook two point zero, and just to see

725
00:35:16,440 --> 00:35:18,520
Speaker 16: how this not only opens, how it trades, and really

726
00:35:18,600 --> 00:35:21,319
Speaker 16: when we start to see retail investors flowing through and

727
00:35:21,360 --> 00:35:23,839
Speaker 16: placing those orders, what that ultimately looks like and does

728
00:35:23,920 --> 00:35:25,920
Speaker 16: to the stock, just given the fact that this is

729
00:35:25,920 --> 00:35:27,600
Speaker 16: going to be potentially pretty volatile.

730
00:35:27,239 --> 00:35:27,839
Speaker 2: It's so Bailey.

731
00:35:27,880 --> 00:35:30,640
Speaker 5: The latest indication indication of opening is one hundred and

732
00:35:30,640 --> 00:35:33,280
Speaker 5: fifty dollars a share, eleven percent above the IPO price

733
00:35:33,320 --> 00:35:36,920
Speaker 5: and implies a market value of roughly just two trillion.

734
00:35:37,239 --> 00:35:39,359
Speaker 2: Just you and I reported out the numbers.

735
00:35:39,040 --> 00:35:44,560
Speaker 5: Right on the retail allocation long only asset allocation. Somebody's

736
00:35:44,600 --> 00:35:47,480
Speaker 5: going to be disappointed. How does that translate when we

737
00:35:47,520 --> 00:35:48,719
Speaker 5: do start trading.

738
00:35:48,480 --> 00:35:50,480
Speaker 2: Everyone is disappointed. Let's just state it that way.

739
00:35:50,560 --> 00:35:53,160
Speaker 16: Everyone pretty much for a ontents and purposes, didn't get

740
00:35:53,160 --> 00:35:55,600
Speaker 16: what they were hoping for. The big question now is

741
00:35:55,680 --> 00:35:58,520
Speaker 16: does that drive follow through buying or does it irk

742
00:35:58,560 --> 00:36:00,360
Speaker 16: people when they say, you know what, I'll just provide

743
00:36:00,400 --> 00:36:02,799
Speaker 16: some liquidity, sell the stock, hopefully it a nice ten

744
00:36:02,840 --> 00:36:05,279
Speaker 16: to eleven percent gain, and move on with my life.

745
00:36:05,320 --> 00:36:07,880
Speaker 16: Because the big question when we do see these debuts

746
00:36:07,960 --> 00:36:10,239
Speaker 16: is where does it open. Do we see steady follow

747
00:36:10,280 --> 00:36:13,040
Speaker 16: through to the upside, and how does the volatility play out?

748
00:36:13,080 --> 00:36:16,440
Speaker 16: Are people holding on for massive gains, providing quick quick

749
00:36:16,480 --> 00:36:18,520
Speaker 16: ins and outs, or is this something that we're going

750
00:36:18,600 --> 00:36:20,799
Speaker 16: to be really tracking in the next week, in the

751
00:36:20,800 --> 00:36:21,799
Speaker 16: next five trading days.

752
00:36:22,080 --> 00:36:25,560
Speaker 4: And I bring back Christian Garrett, of course isn't disappointed

753
00:36:25,600 --> 00:36:27,960
Speaker 4: because he's been in this company from almost its birth,

754
00:36:28,320 --> 00:36:32,560
Speaker 4: and you've been reallocating, upping the investment each and every round.

755
00:36:33,000 --> 00:36:36,040
Speaker 4: We know lookups expiring about August, So what happens to

756
00:36:36,120 --> 00:36:36,720
Speaker 4: your holding?

757
00:36:37,320 --> 00:36:40,080
Speaker 8: So us and alongside many of the investors who've been

758
00:36:40,120 --> 00:36:42,240
Speaker 8: invested for a long time that are running institutional firms,

759
00:36:42,360 --> 00:36:44,520
Speaker 8: I'll have the same dynamic where we will distribute back

760
00:36:44,560 --> 00:36:46,920
Speaker 8: to our alps and let them make their own decisions.

761
00:36:46,920 --> 00:36:49,680
Speaker 8: And within that, I think one of a lot of

762
00:36:49,719 --> 00:36:51,319
Speaker 8: the articles that have come out which have been great

763
00:36:51,320 --> 00:36:53,880
Speaker 8: really highlighting how large a position SpaceX is for a

764
00:36:53,880 --> 00:36:56,600
Speaker 8: lot of these institutional investors. And so you know, whether

765
00:36:56,640 --> 00:36:59,960
Speaker 8: it's an endowments or a pension plan, whether it's you know,

766
00:37:00,080 --> 00:37:02,399
Speaker 8: a friend or a family office or other different types

767
00:37:02,400 --> 00:37:05,960
Speaker 8: of institutions, foundations, all these folks are going to end

768
00:37:06,040 --> 00:37:08,600
Speaker 8: up receiving their distribution of the stock. And then many

769
00:37:08,600 --> 00:37:10,560
Speaker 8: of them are not going to be selling right. Some

770
00:37:10,600 --> 00:37:12,560
Speaker 8: may have liquidity needs, and I think that's a decision

771
00:37:12,600 --> 00:37:14,080
Speaker 8: that each LP will make.

772
00:37:14,560 --> 00:37:16,800
Speaker 5: Something that you touched on earlier is critically important. We

773
00:37:16,880 --> 00:37:19,200
Speaker 5: might get interrupted any moment, you know that, But like

774
00:37:19,760 --> 00:37:24,160
Speaker 5: there have been regular liquidity events for SpaceX staff and employees.

775
00:37:24,680 --> 00:37:27,279
Speaker 5: There will be more than four thousand millionaires minted at

776
00:37:27,280 --> 00:37:32,000
Speaker 5: SpaceX from this transaction. They chose to stay, We've reported

777
00:37:32,040 --> 00:37:33,759
Speaker 5: many of them tried to get more shares through the

778
00:37:33,760 --> 00:37:36,920
Speaker 5: direct share program and otherwise speak to that, like what

779
00:37:37,080 --> 00:37:38,800
Speaker 5: is that signal to you?

780
00:37:38,880 --> 00:37:42,120
Speaker 8: So SpaceX really pioneered the staying private for a longer trend.

781
00:37:43,239 --> 00:37:46,680
Speaker 2: Our firms started eleven really.

782
00:37:46,920 --> 00:37:48,600
Speaker 8: On the heels of Facebook, which we really is the

783
00:37:48,600 --> 00:37:51,280
Speaker 8: first one, and SpaceX really took it obviously to another level.

784
00:37:51,760 --> 00:37:53,279
Speaker 8: One of the dynamics that they did in order to

785
00:37:53,280 --> 00:37:56,280
Speaker 8: stay private longer was offer regular locruity events for their employees.

786
00:37:57,000 --> 00:38:01,239
Speaker 8: During that dynamic, over almost two decades, employees have had

787
00:38:01,400 --> 00:38:03,960
Speaker 8: ample time to get liquidity and cover different needs. And

788
00:38:04,000 --> 00:38:06,640
Speaker 8: I think that's something that's underappreciated about the business. Is

789
00:38:06,680 --> 00:38:08,880
Speaker 8: not just the impact they had on the venture ecosystem, right,

790
00:38:08,960 --> 00:38:10,560
Speaker 8: So much of what we're experiencing is because of how

791
00:38:10,640 --> 00:38:12,760
Speaker 8: much capital is flooded in as companies say private longer,

792
00:38:12,880 --> 00:38:15,120
Speaker 8: but in particular, a lot of the employees have already

793
00:38:15,120 --> 00:38:17,640
Speaker 8: had their chances of liquidity, and so as I mentioned,

794
00:38:17,680 --> 00:38:19,160
Speaker 8: a lot of these folks are long term holders and

795
00:38:19,200 --> 00:38:20,160
Speaker 8: are not selling as well.

796
00:38:20,280 --> 00:38:23,320
Speaker 4: We're getting excitement building from the floor of the Nasdaq

797
00:38:23,360 --> 00:38:27,800
Speaker 4: as we await the opening trade of SpaceX, most recently

798
00:38:27,800 --> 00:38:31,120
Speaker 4: indicated at one hundred and fifty dollars, rating it at

799
00:38:31,120 --> 00:38:33,920
Speaker 4: about a market capitalization if you're looking at a fully

800
00:38:33,920 --> 00:38:37,640
Speaker 4: dilated diluted basis of just under two trillion dollars, I

801
00:38:37,680 --> 00:38:40,400
Speaker 4: make it the sixth biggest company on the nasat one hundred,

802
00:38:40,640 --> 00:38:43,880
Speaker 4: just below Amazon, just above Broadcom and Bailey. You've been

803
00:38:43,920 --> 00:38:46,880
Speaker 4: talking about how integral this is to the retail investor.

804
00:38:47,680 --> 00:38:50,000
Speaker 4: How much allocation do the retail investor get? How much

805
00:38:50,000 --> 00:38:51,000
Speaker 4: did they get pump up the stock?

806
00:38:51,239 --> 00:38:54,160
Speaker 16: We reported a twenty percent, so about fifteen billion dollars,

807
00:38:54,160 --> 00:38:56,640
Speaker 16: which is a large number, granted is we'd also reported

808
00:38:56,680 --> 00:38:58,719
Speaker 16: they put in orders for about one hundred billion, So

809
00:38:58,760 --> 00:39:01,120
Speaker 16: again a lot of people getting far less than they

810
00:39:01,160 --> 00:39:04,040
Speaker 16: were expecting. And the big thing is going to be again,

811
00:39:04,280 --> 00:39:07,920
Speaker 16: are these individual investors going to show up in size?

812
00:39:07,920 --> 00:39:09,920
Speaker 16: If you put in for thirty thousand dollars worth of

813
00:39:09,920 --> 00:39:11,960
Speaker 16: the stock and you've got five thousand, are you going

814
00:39:12,000 --> 00:39:14,120
Speaker 16: to then still buy twenty five thousand in the open market.

815
00:39:14,120 --> 00:39:16,440
Speaker 16: The other thing to keep in mind too is the

816
00:39:16,480 --> 00:39:19,080
Speaker 16: fact that I would say the vast majority of individuals

817
00:39:19,320 --> 00:39:21,520
Speaker 16: use market orders. They don't set the price, they buy

818
00:39:21,560 --> 00:39:22,279
Speaker 16: wherever they can.

819
00:39:22,200 --> 00:39:25,520
Speaker 5: Get filled, and most Bailey Lipshaltz, Christian Garrett one through

820
00:39:25,520 --> 00:39:27,640
Speaker 5: seven ventures stay with us. Thank you both very much.

821
00:39:27,640 --> 00:39:32,680
Speaker 5: SpaceX begins training today under ticker sp c X indications

822
00:39:32,680 --> 00:39:35,120
Speaker 5: one hundred and fifty dollars a share, eleven percent premium on.

823
00:39:35,080 --> 00:39:36,640
Speaker 2: The IPO price of one thirty five.

824
00:39:36,880 --> 00:39:40,600
Speaker 5: They raised one hundred seventy five billion dollars largest IPO. Ever,

825
00:39:40,880 --> 00:39:44,520
Speaker 5: the deal was so heavily oversubscribed, especially in the retail category.

826
00:39:44,560 --> 00:39:48,840
Speaker 5: As Bailey outlined, Elon Musk promised loyal Tesla shareholders priority

827
00:39:48,880 --> 00:39:52,279
Speaker 5: access to the SpaceX IPO for a long time.

828
00:39:52,440 --> 00:39:53,440
Speaker 2: But did they get it?

829
00:39:53,480 --> 00:39:57,320
Speaker 5: And how is Tesla's retail base reacting to SpaceX is listing.

830
00:39:57,800 --> 00:40:01,000
Speaker 5: Alexandra Mertz, better known as test Labuma Mamma, one of

831
00:40:01,080 --> 00:40:06,000
Speaker 5: Tesla's most prominent retail shareholders and investors that are active

832
00:40:06,040 --> 00:40:10,080
Speaker 5: in the investor retail base, joins us. Now, my understanding

833
00:40:10,120 --> 00:40:12,280
Speaker 5: is that you did not try and get an allocation

834
00:40:12,360 --> 00:40:18,319
Speaker 5: in this IPO. That you won't try, alex stay put caro.

835
00:40:18,640 --> 00:40:20,360
Speaker 3: We have an opening trade.

836
00:40:20,880 --> 00:40:25,000
Speaker 4: SpaceX opens at one hundred and fifty dollars. That is

837
00:40:25,040 --> 00:40:28,680
Speaker 4: an eleven percent increase on one hundred and thirty five

838
00:40:28,760 --> 00:40:32,759
Speaker 4: dollars pricing. Extraordinary day ed you have followed this tick

839
00:40:32,760 --> 00:40:35,600
Speaker 4: by tick, moment by moment, but we understand that an

840
00:40:35,640 --> 00:40:38,320
Speaker 4: opening trade has come in at one hundred and fifty

841
00:40:38,360 --> 00:40:42,200
Speaker 4: dollars shares open for SpaceX. Then as that crowd goes wild,

842
00:40:42,280 --> 00:40:43,279
Speaker 4: there we are a.

843
00:40:44,000 --> 00:40:45,880
Speaker 5: Percent and where the IPO price at one hundred and

844
00:40:45,880 --> 00:40:47,680
Speaker 5: thirty five, that's going to jump around. It's going to

845
00:40:47,680 --> 00:40:50,280
Speaker 5: be a long few hours of trading. A market value

846
00:40:50,280 --> 00:40:52,560
Speaker 5: of about one point ninety six trillion dollars, but on

847
00:40:52,600 --> 00:40:56,720
Speaker 5: a fully diluted basis just a touch above two trillion.

848
00:40:57,000 --> 00:40:59,880
Speaker 5: I think, I think we'll go live to the Nasdaq

849
00:41:00,120 --> 00:41:02,359
Speaker 5: and Bloomberg's you hira and end you hira?

850
00:41:02,520 --> 00:41:03,080
Speaker 2: What are you seeing?

851
00:41:03,760 --> 00:41:07,319
Speaker 7: Hi? The moment is here, and there it is. SpaceX

852
00:41:07,360 --> 00:41:10,720
Speaker 7: has officially begun trading, the stock opening at one hundred

853
00:41:10,719 --> 00:41:13,400
Speaker 7: and fifty dollars a share above its one hundred and

854
00:41:13,400 --> 00:41:17,560
Speaker 7: thirty five dollars IPO price, giving investors an immediate gain,

855
00:41:17,840 --> 00:41:21,560
Speaker 7: as you guys said, of eleven percent. That opening price

856
00:41:21,600 --> 00:41:25,960
Speaker 7: now values a company at approximately less than two trillion dollars,

857
00:41:25,960 --> 00:41:31,080
Speaker 7: but instantly putting SpaceX among the most valuable companies in

858
00:41:31,160 --> 00:41:34,719
Speaker 7: the world. So, after a morning of shifting indications and

859
00:41:35,360 --> 00:41:39,080
Speaker 7: intense anticipation with everyone here from the president of SpaceX

860
00:41:39,120 --> 00:41:43,360
Speaker 7: the CFO, the market has finally delivered its first verdict

861
00:41:43,400 --> 00:41:46,520
Speaker 7: on SpaceX. So now the focus will be whether those

862
00:41:46,520 --> 00:41:48,520
Speaker 7: gains can hold. As trading gets underway.

863
00:41:48,760 --> 00:41:52,880
Speaker 5: Bloomboks Jahia and at the Nasdaq, SpaceX opened eleven percent

864
00:41:52,880 --> 00:41:55,120
Speaker 5: above its IPO price of one hundred and thirty five

865
00:41:55,160 --> 00:41:57,719
Speaker 5: dollars you see on the screen trading around one hundred

866
00:41:57,760 --> 00:42:00,279
Speaker 5: and fifty two to fifty three dollars per share and

867
00:42:00,320 --> 00:42:02,560
Speaker 5: on a fully diluted basis at a value of just

868
00:42:02,600 --> 00:42:05,640
Speaker 5: a touch over two trillion. Let's keep the conversation going

869
00:42:05,960 --> 00:42:09,000
Speaker 5: and get packed to Alexandra Mertz, a Tesla investor, a

870
00:42:09,040 --> 00:42:14,560
Speaker 5: retail investor and also LNF Investor Services CEO. You didn't

871
00:42:14,560 --> 00:42:19,280
Speaker 5: buy into this IPO. You have a thesis? Why yes?

872
00:42:19,440 --> 00:42:21,319
Speaker 17: And thanks for having me on this historic day and

873
00:42:21,400 --> 00:42:23,640
Speaker 17: congratulation to the opening just when I was supposed to

874
00:42:23,680 --> 00:42:24,680
Speaker 17: come on. Wasn't that funny?

875
00:42:24,960 --> 00:42:26,720
Speaker 2: Now back to my thesis.

876
00:42:26,760 --> 00:42:29,799
Speaker 17: My thesis is that Tesla and SpaceX will merge, and

877
00:42:29,880 --> 00:42:33,040
Speaker 17: as all in Tesla investor, I would have had to

878
00:42:33,160 --> 00:42:35,799
Speaker 17: sell Tesla, which I was not going to do. So

879
00:42:36,000 --> 00:42:38,759
Speaker 17: my thesis is I'm going to hold these and in

880
00:42:38,800 --> 00:42:41,480
Speaker 17: a couple of short weeks if I am right, they

881
00:42:41,520 --> 00:42:45,719
Speaker 17: will announce this merger that will then be consummated in

882
00:42:45,760 --> 00:42:48,880
Speaker 17: the first half of twenty twenty seven, and that Tesla

883
00:42:48,920 --> 00:42:52,839
Speaker 17: shareholders will become SpaceX shareholders in this way, so no

884
00:42:52,880 --> 00:42:54,320
Speaker 17: need for me to go into the IPO.

885
00:42:54,400 --> 00:42:58,120
Speaker 4: Alexandra, you are a long term Elon Musk fan. Elo

886
00:42:58,200 --> 00:43:02,880
Speaker 4: Musk has become the world's first trillionaire. As SpaceX jumps

887
00:43:03,040 --> 00:43:06,799
Speaker 4: at the open well above two trillion dollars in terms

888
00:43:06,840 --> 00:43:10,719
Speaker 4: of market capitalization, he becomes the world's first trillionaire.

889
00:43:10,760 --> 00:43:14,040
Speaker 17: What do you think, Well, first of all, I'm not

890
00:43:14,320 --> 00:43:17,720
Speaker 17: at all into this net worth porn. It's really something

891
00:43:17,800 --> 00:43:21,200
Speaker 17: that I cannot get over. Elon Musk is a historic

892
00:43:21,239 --> 00:43:24,720
Speaker 17: figure that is providing one hundred and forty thousand jobs,

893
00:43:24,800 --> 00:43:29,000
Speaker 17: that has changed an industry in cars, an industry in space,

894
00:43:29,120 --> 00:43:31,960
Speaker 17: that is going to change an industry in data centers.

895
00:43:32,280 --> 00:43:35,520
Speaker 17: So whether he has a stock portfolio that's one trillion

896
00:43:35,600 --> 00:43:36,960
Speaker 17: or not is just not relevant.

897
00:43:37,320 --> 00:43:37,480
Speaker 2: Now.

898
00:43:37,520 --> 00:43:40,040
Speaker 17: Having said that, what is relevant is the direct and

899
00:43:40,040 --> 00:43:43,799
Speaker 17: indirect jobs he created and the many investors that he

900
00:43:43,840 --> 00:43:46,160
Speaker 17: made rich, including many employees.

901
00:43:47,040 --> 00:43:49,480
Speaker 2: We're seeing real acceleration now in the shares.

902
00:43:49,480 --> 00:43:52,680
Speaker 5: We're at one hundred and sixty dollars per share shop

903
00:43:52,719 --> 00:43:55,760
Speaker 5: about eighteen percent above the IPO price of one hundred

904
00:43:55,760 --> 00:43:57,440
Speaker 5: and thirty five dollars a share, and a second I'll

905
00:43:57,480 --> 00:44:01,080
Speaker 5: do the math on that. Alexandra Mertz outline her thesis

906
00:44:01,320 --> 00:44:04,440
Speaker 5: that she believes a merger between SpaceX and Tesla is imminent.

907
00:44:04,719 --> 00:44:08,840
Speaker 5: Bloomberg has not reported that. We did report prior to

908
00:44:08,960 --> 00:44:12,520
Speaker 5: SpaceX merging with Xai privately that the boards of SpaceX

909
00:44:12,560 --> 00:44:14,120
Speaker 5: and Tesla had discussed the idea.

910
00:44:14,440 --> 00:44:15,319
Speaker 2: We just don't know.

911
00:44:15,520 --> 00:44:19,120
Speaker 5: I'd also point out that this is much about not

912
00:44:19,200 --> 00:44:22,080
Speaker 5: just economic ownership of SpaceX. Christian Garrett of one three

913
00:44:22,200 --> 00:44:26,880
Speaker 5: seven Elon Musk has eighty four percent voting power post

914
00:44:26,960 --> 00:44:30,600
Speaker 5: this trade. Why is that important to you as somebody

915
00:44:30,640 --> 00:44:32,520
Speaker 5: that's been on the cap table for a long time.

916
00:44:33,080 --> 00:44:35,319
Speaker 8: I think any investment in SpaceX, whether it was in

917
00:44:35,320 --> 00:44:38,160
Speaker 8: the private markets, which was our experience historically, and then

918
00:44:38,200 --> 00:44:40,239
Speaker 8: now obviously the company and the public markets, and that's

919
00:44:40,239 --> 00:44:42,400
Speaker 8: a shared experience among a lot of us now at

920
00:44:42,440 --> 00:44:45,239
Speaker 8: the company's public This is a lot of company that

921
00:44:45,239 --> 00:44:49,000
Speaker 8: has a long term view. They're investing in really transforming

922
00:44:49,080 --> 00:44:52,480
Speaker 8: humanity across all these different verticals.

923
00:44:52,000 --> 00:44:54,000
Speaker 2: That Elon Musk is the swing factor.

924
00:44:53,719 --> 00:44:56,719
Speaker 8: And Elon's a huge swing factor the visionary and I

925
00:44:56,760 --> 00:44:58,920
Speaker 8: think fundamentally, you basically want to have a company that

926
00:44:58,960 --> 00:45:01,200
Speaker 8: you know is going to be focus on the long term,

927
00:45:01,280 --> 00:45:03,960
Speaker 8: and so that gives us the ability because the company

928
00:45:03,960 --> 00:45:07,120
Speaker 8: the ability to focus long term, and I think that's

929
00:45:07,160 --> 00:45:10,160
Speaker 8: really the mindset you need to look at this. It

930
00:45:10,200 --> 00:45:12,200
Speaker 8: actually brings stability to the company, which is what you

931
00:45:12,239 --> 00:45:14,399
Speaker 8: want when you're investing in something that's going after a

932
00:45:14,520 --> 00:45:15,840
Speaker 8: multi generational opportunity.

933
00:45:16,000 --> 00:45:18,960
Speaker 4: Alexandro, you go back to you because you have done

934
00:45:19,080 --> 00:45:22,680
Speaker 4: years of due diligence on Tesla as a retail holder

935
00:45:22,719 --> 00:45:27,280
Speaker 4: now one of the most vocal and well known retail

936
00:45:27,320 --> 00:45:28,280
Speaker 4: investors on Tesla.

937
00:45:29,239 --> 00:45:30,839
Speaker 3: Put your view to the.

938
00:45:30,800 --> 00:45:34,040
Speaker 4: Retail investors trying to buy in to SpaceX, but whose

939
00:45:34,080 --> 00:45:35,319
Speaker 4: friends around them are saying, have.

940
00:45:35,320 --> 00:45:37,440
Speaker 3: You looked to the corporate governance? Are you worried about

941
00:45:37,719 --> 00:45:39,920
Speaker 3: the dominance and the voting rights that Elon Musk has.

942
00:45:40,000 --> 00:45:41,920
Speaker 3: Is that a win or a loss from your perspective?

943
00:45:42,560 --> 00:45:45,719
Speaker 17: Well, first of all, retail shareholders were I'd be very privileged,

944
00:45:45,880 --> 00:45:48,879
Speaker 17: especially the small ones. So I went through my followership

945
00:45:48,920 --> 00:45:52,279
Speaker 17: this morning and lots of the smaller retail investors got

946
00:45:52,280 --> 00:45:54,560
Speaker 17: actual one hundred percent of what they requested. So that

947
00:45:54,760 --> 00:45:58,640
Speaker 17: is quite contrary to what Bailey said earlier. Now it

948
00:45:58,719 --> 00:46:02,440
Speaker 17: is true the big portfolio of the retail investors had

949
00:46:02,440 --> 00:46:06,200
Speaker 17: the less they got, which is corresponding to the promise

950
00:46:06,239 --> 00:46:10,360
Speaker 17: that Elon made. He wanted to have loyal small retail

951
00:46:10,400 --> 00:46:14,480
Speaker 17: investors rewarded, and they got rewarded today. Now to the governance,

952
00:46:14,640 --> 00:46:18,520
Speaker 17: I mean, it is clear that SpaceX is what I

953
00:46:18,719 --> 00:46:24,080
Speaker 17: call Elon's imperium. He has rights like some other founder

954
00:46:24,440 --> 00:46:28,520
Speaker 17: led megacaps that are just disproportional. Look at Google, look

955
00:46:28,520 --> 00:46:29,319
Speaker 17: at Meta.

956
00:46:29,400 --> 00:46:29,719
Speaker 13: But the.

957
00:46:31,800 --> 00:46:35,120
Speaker 17: Retail shareholders who the last six years went through helen

958
00:46:35,239 --> 00:46:40,080
Speaker 17: back with court cases, act with activists with whatever, they

959
00:46:40,120 --> 00:46:43,600
Speaker 17: actually welcome this. They want the founder to have the

960
00:46:43,719 --> 00:46:47,160
Speaker 17: power he deserves, especially in Elon's case. So I didn't

961
00:46:47,200 --> 00:46:54,440
Speaker 17: hear any retail investor complaining about the governance in SpaceX.

962
00:46:54,760 --> 00:46:58,160
Speaker 17: Rather the opposite. They would welcome that SpaceX is the

963
00:46:58,320 --> 00:47:01,839
Speaker 17: entity that would absorb to so that the errors that

964
00:47:01,880 --> 00:47:05,040
Speaker 17: were made in twenty ten with Tesla are finally out

965
00:47:05,080 --> 00:47:05,800
Speaker 17: of the system.

966
00:47:06,680 --> 00:47:09,440
Speaker 4: We are up eighteen and a half percent, Alexandra Martz,

967
00:47:09,719 --> 00:47:11,439
Speaker 4: But meanwhile Tesla trad's a little bit lower.

968
00:47:11,480 --> 00:47:12,279
Speaker 3: You're a Tesla.

969
00:47:12,040 --> 00:47:13,879
Speaker 4: Investor, Is that the right trade at the moment, sell

970
00:47:13,960 --> 00:47:15,160
Speaker 4: Tesla buy into SpaceX.

971
00:47:16,320 --> 00:47:18,560
Speaker 17: Well, I did not, as you know, and I do

972
00:47:18,640 --> 00:47:21,080
Speaker 17: believe that actually a lot of the money today will

973
00:47:21,120 --> 00:47:25,640
Speaker 17: pour back into Tesla. The two retail groups overlap a lot.

974
00:47:25,840 --> 00:47:29,239
Speaker 17: I'm sure about eighty percent. So the allocations that were

975
00:47:29,280 --> 00:47:33,000
Speaker 17: not filled, I expect them today or on Monday pouring

976
00:47:33,040 --> 00:47:35,200
Speaker 17: back into Tesla. So I'm not loorried at all.

977
00:47:36,000 --> 00:47:40,600
Speaker 4: Alexandra Martz, Tesla Investor shareholder, LLENF Investor Services CEO in

978
00:47:40,600 --> 00:47:42,240
Speaker 4: Tesla boomer Mama is she's known online.

979
00:47:42,239 --> 00:47:43,040
Speaker 3: We appreciate it.

980
00:47:44,040 --> 00:47:47,120
Speaker 4: We got but a moment with the latest with Jahira

981
00:47:47,200 --> 00:47:48,480
Speaker 4: and and that we're going to be going to in

982
00:47:48,520 --> 00:47:50,799
Speaker 4: a moment where we're going to Christian Garrett of one

983
00:47:50,840 --> 00:47:52,440
Speaker 4: three seven Ventures, he sat with us.

984
00:47:52,920 --> 00:47:54,279
Speaker 3: I mean, how does it feel You've been.

985
00:47:54,160 --> 00:47:57,399
Speaker 4: In this company for over a decade, You've invested round

986
00:47:57,440 --> 00:48:00,399
Speaker 4: off the round. It's now trading seventeen percent higher than

987
00:48:00,560 --> 00:48:01,640
Speaker 4: it's listening, christ.

988
00:48:01,640 --> 00:48:02,600
Speaker 2: It's an exciting moment.

989
00:48:03,200 --> 00:48:05,200
Speaker 8: And I have a lot of friends I know that

990
00:48:05,239 --> 00:48:07,480
Speaker 8: are very excited as well. You have people kind of

991
00:48:07,520 --> 00:48:08,800
Speaker 8: all around the world that have been a part of

992
00:48:08,840 --> 00:48:10,680
Speaker 8: this journey, been a part of this company, from the

993
00:48:10,719 --> 00:48:13,200
Speaker 8: employees to the management team to the investor base.

994
00:48:14,200 --> 00:48:15,240
Speaker 2: Excited for LPs.

995
00:48:15,800 --> 00:48:17,600
Speaker 8: This was my dad's favorite company, so I think that'd

996
00:48:17,640 --> 00:48:20,800
Speaker 8: even more exciting, and so It's awesome to be a

997
00:48:20,800 --> 00:48:22,840
Speaker 8: part of this moment, but quite frankly, I think this

998
00:48:23,000 --> 00:48:25,359
Speaker 8: is very much a okay, let's get back to work

999
00:48:25,360 --> 00:48:28,040
Speaker 8: and get focused because we have another forty years of

1000
00:48:28,120 --> 00:48:28,600
Speaker 8: work to do.

1001
00:48:29,680 --> 00:48:31,920
Speaker 3: Christian Kahra, what a joy to have you here with us.

1002
00:48:32,120 --> 00:48:33,799
Speaker 2: Thank you very much for being here for the aut

1003
00:48:33,880 --> 00:48:34,920
Speaker 2: real appreciate car.

1004
00:48:35,680 --> 00:48:38,120
Speaker 4: Now we're going to say goodbye to Christian. I'm on

1005
00:48:38,200 --> 00:48:40,399
Speaker 4: through some ventures and welcome back in you hire. And

1006
00:48:40,400 --> 00:48:42,520
Speaker 4: and who is down in the Nastag? It's trading And

1007
00:48:42,560 --> 00:48:44,520
Speaker 4: how is the energy on the floor.

1008
00:48:45,400 --> 00:48:48,279
Speaker 7: There is so much energy here at the Nasdag and

1009
00:48:48,320 --> 00:48:52,200
Speaker 7: it really started this morning and when we saw crowds

1010
00:48:52,239 --> 00:48:56,359
Speaker 7: of fans poparazzi here, some hoping to see Elon Musk,

1011
00:48:56,400 --> 00:48:59,040
Speaker 7: but of course he was over in Texas. But yeah,

1012
00:48:59,200 --> 00:49:03,920
Speaker 7: the enthusiasm continues. Now that that opening price does value

1013
00:49:03,920 --> 00:49:07,120
Speaker 7: the company at just under two trillion dollars, it of

1014
00:49:07,160 --> 00:49:11,479
Speaker 7: course instantly puts SpaceX among the most valuable companies, more

1015
00:49:11,560 --> 00:49:17,400
Speaker 7: valuable than Meta, even Tesla itself itself, Saudi Aramco. And

1016
00:49:17,600 --> 00:49:20,360
Speaker 7: one of the people watching it all unfold here is

1017
00:49:20,400 --> 00:49:23,840
Speaker 7: this morning. This morning is naszac CEO A Dina Friedman,

1018
00:49:23,880 --> 00:49:28,560
Speaker 7: who has worked very hard pursuing this largest IPO in

1019
00:49:28,680 --> 00:49:32,880
Speaker 7: market history, and we are seeing her talk at this moment.

1020
00:49:33,000 --> 00:49:37,959
Speaker 7: So after a morning of just shifting indications and intense anticipation,

1021
00:49:38,080 --> 00:49:41,520
Speaker 7: it is finally here. The market has finally delivered its

1022
00:49:41,560 --> 00:49:43,120
Speaker 7: first verdict on SpaceX.

1023
00:49:43,400 --> 00:49:47,160
Speaker 5: Bloombergs Yahara and and working hard on the beat than

1024
00:49:47,239 --> 00:49:48,919
Speaker 5: Asdak will see you throughout the day.

1025
00:49:48,960 --> 00:49:50,520
Speaker 2: And what a day it is.

1026
00:49:50,600 --> 00:49:54,720
Speaker 5: SpaceX the biggest IPO in history, raising seventy five billion

1027
00:49:54,760 --> 00:49:57,920
Speaker 5: dollars and right now we're trading around one hundred and

1028
00:49:57,960 --> 00:49:59,040
Speaker 5: sixty dollars a share.

1029
00:49:59,520 --> 00:50:00,279
Speaker 3: How does it feel?

1030
00:50:00,360 --> 00:50:03,799
Speaker 4: And you have been covering this company each step of

1031
00:50:03,840 --> 00:50:07,799
Speaker 4: the way, discussing with the investors, the wanna be investors,

1032
00:50:07,840 --> 00:50:11,680
Speaker 4: the retail allocations extraordinary, and every single moment Elon Musk

1033
00:50:11,760 --> 00:50:12,640
Speaker 4: was breaking the rules.

1034
00:50:12,680 --> 00:50:13,400
Speaker 3: The way in which this.

1035
00:50:13,560 --> 00:50:14,920
Speaker 2: Ipo highly unusual.

1036
00:50:14,960 --> 00:50:17,520
Speaker 5: It was a typical set of price early then do

1037
00:50:17,560 --> 00:50:20,120
Speaker 5: a road show for no one really is sure why.

1038
00:50:20,440 --> 00:50:22,160
Speaker 5: What I would say is there is a long, long

1039
00:50:22,239 --> 00:50:26,360
Speaker 5: way to the future where humans are a multiplanetary species,

1040
00:50:26,440 --> 00:50:28,959
Speaker 5: and there is satellites around the Earth that are running

1041
00:50:29,000 --> 00:50:31,880
Speaker 5: inference their data centers. But in the near term. Everyone's

1042
00:50:31,920 --> 00:50:34,120
Speaker 5: now talking about how good the company is. A data

1043
00:50:34,120 --> 00:50:36,120
Speaker 5: center on Earth. Yeah, hyperscaling.

1044
00:50:36,160 --> 00:50:38,080
Speaker 3: Yeah, what about what a blinder you keep calling it?

1045
00:50:38,160 --> 00:50:39,200
Speaker 2: Yeah, they played a blinder.

1046
00:50:39,320 --> 00:50:42,200
Speaker 5: And actually I'm just using the phrase that the people

1047
00:50:42,239 --> 00:50:44,040
Speaker 5: gave to me when they phone me up and they say, like,

1048
00:50:44,080 --> 00:50:47,120
Speaker 5: this is why we're so convicted. I have such conviction

1049
00:50:47,400 --> 00:50:50,319
Speaker 5: on the name. The last thing that will happen as well, well,

1050
00:50:50,320 --> 00:50:51,960
Speaker 5: not the last thing. Let's just be honest about this

1051
00:50:52,320 --> 00:50:54,520
Speaker 5: biggest IPO in history, raised seventy five billion dollars.

1052
00:50:54,560 --> 00:50:57,080
Speaker 2: What happens next? They'll go back to the capital market.

1053
00:50:57,120 --> 00:50:59,319
Speaker 3: So I bet you and I can't wait to be

1054
00:50:59,400 --> 00:50:59,920
Speaker 3: watching that.

1055
00:51:00,400 --> 00:51:03,760
Speaker 4: But right now I have some news because after eighteen

1056
00:51:03,840 --> 00:51:07,759
Speaker 4: extraordinary years at Bloomberg, I'm actually pressing pause to have

1057
00:51:07,800 --> 00:51:10,799
Speaker 4: a wild and wonderful journey with my family. We're off

1058
00:51:10,840 --> 00:51:13,120
Speaker 4: to travel the world for a year, just the four

1059
00:51:13,160 --> 00:51:14,719
Speaker 4: of us, just four carry.

1060
00:51:14,440 --> 00:51:16,440
Speaker 3: On bags and a whole load of excitement.

1061
00:51:16,760 --> 00:51:19,640
Speaker 4: And it is with enormous gratitude that I want to

1062
00:51:19,640 --> 00:51:22,479
Speaker 4: thank this Bloomberg team for their support as I step

1063
00:51:22,520 --> 00:51:25,160
Speaker 4: away from my daily presenting. Look, the decision has not

1064
00:51:25,239 --> 00:51:29,120
Speaker 4: come easily. In fact, I'm pretty terrified to fly away

1065
00:51:29,200 --> 00:51:33,160
Speaker 4: from the most exciting news flow, the most fascinating interviews,

1066
00:51:33,280 --> 00:51:35,600
Speaker 4: and what I believe to be the most talented team

1067
00:51:35,680 --> 00:51:39,800
Speaker 4: in journalism. It feels almost insane, But time keeps ticking,

1068
00:51:40,000 --> 00:51:42,480
Speaker 4: the kids keep growing, and so I know this is

1069
00:51:42,600 --> 00:51:44,719
Speaker 4: our moment for our adventure of a lifetime. But I

1070
00:51:44,760 --> 00:51:48,040
Speaker 4: also know Bloomberg has an extraordinary year ahead. No one

1071
00:51:48,080 --> 00:51:51,800
Speaker 4: tells the stories of disruption better than this Bloomberg tech team,

1072
00:51:52,000 --> 00:51:54,520
Speaker 4: and I can't wait to cheer on Bloomberg TV, Bloomberg News,

1073
00:51:54,560 --> 00:51:58,040
Speaker 4: and Bloomberg Originals as they continue breaking stories, landing interviews,

1074
00:51:58,120 --> 00:52:01,760
Speaker 4: winning awards. And it takes a village to bring news

1075
00:52:01,800 --> 00:52:05,279
Speaker 4: to wire, to television, to air events, to stage documentaries

1076
00:52:05,320 --> 00:52:05,600
Speaker 4: to life.

1077
00:52:05,680 --> 00:52:07,520
Speaker 3: In fact, it takes three thousand.

1078
00:52:07,239 --> 00:52:09,960
Speaker 4: Of us Bloomberg journalists and one hundred countries around the world.

1079
00:52:10,320 --> 00:52:13,279
Speaker 4: As we like to remind you, but I've lost count

1080
00:52:13,320 --> 00:52:15,840
Speaker 4: of how many people have trained me, mentored me, challenged me,

1081
00:52:15,920 --> 00:52:18,759
Speaker 4: collaborated with me, floor managed me, filmed me, and yes,

1082
00:52:18,840 --> 00:52:21,520
Speaker 4: beautified me along the way. And to everyone I've been

1083
00:52:21,600 --> 00:52:24,239
Speaker 4: lucky enough to learn from outside of Bloomberg, every spokesperson,

1084
00:52:24,320 --> 00:52:28,719
Speaker 4: every executive, every event organizer, every audience member, Yes you

1085
00:52:28,800 --> 00:52:29,279
Speaker 4: watching this.

1086
00:52:29,440 --> 00:52:31,960
Speaker 3: Thank you you make this an absolute blast.

1087
00:52:32,760 --> 00:52:35,120
Speaker 4: And a special thanks goes to the co anka I

1088
00:52:35,160 --> 00:52:38,080
Speaker 4: stand to sit next to you now ed the production

1089
00:52:38,200 --> 00:52:40,759
Speaker 4: team I hear guiding me in the control room, and

1090
00:52:40,800 --> 00:52:43,279
Speaker 4: the floor managers and the camera operators stood in front

1091
00:52:43,320 --> 00:52:45,960
Speaker 4: of me at this second. You're the best crew I

1092
00:52:45,960 --> 00:52:48,200
Speaker 4: could ever have hoped for, and I will miss you

1093
00:52:48,239 --> 00:52:51,040
Speaker 4: more than you could ever know. But it's time to

1094
00:52:51,040 --> 00:52:55,920
Speaker 4: swap studios for suitcases. With that, maybe it does it

1095
00:52:55,920 --> 00:52:57,279
Speaker 4: for this edition of Bloomberg Tech.

1096
00:52:57,480 --> 00:53:02,160
Speaker 5: Ed Ludley, fifteen years to the day you and I

1097
00:53:02,200 --> 00:53:03,960
Speaker 5: met in London. You were the first person I met

1098
00:53:04,000 --> 00:53:08,359
Speaker 5: at Bloomberg and you made my career recap that show

1099
00:53:08,480 --> 00:53:11,120
Speaker 5: recap Caroline on the pod your where to find it

1100
00:53:11,360 --> 00:53:12,120
Speaker 5: from New York.

1101
00:53:11,960 --> 00:53:15,279
Speaker 2: City, the biggest ipo in history. This is Bloomberg Tech