Speaker 1: Bloomberg Audio Studios, podcasts, radio news. Bloomberg Tech is alive
Speaker 1: from coast to coast with Caroline Hyde in New York
Speaker 1: and Ed Lovelow in San Francisco.
Speaker 2: This is Bloomberg Tech.
Speaker 3: I'm Ed Ludlow and I'm Caroline Hyde.
Speaker 4: And today is the day SpaceX's big debut in the
Speaker 4: public markets. The company is set to begin trading any
Speaker 4: moment now.
Speaker 5: And break down what that means for investors and for
Speaker 5: the space economy and for the IPO pipeline. Elon Musk,
Speaker 5: speaking at Star based Texas just a couple of hours ago.
Speaker 6: I give SpaceX less than a ten percent chance of
Speaker 6: succeeding at all.
Speaker 2: To be clear, In fact, I told people this.
Speaker 6: Look, we're probably gonna fail, but you know, we should
Speaker 6: give it a try, because if we don't, if there's
Speaker 6: not an new company that erospace, we will never be
Speaker 6: a truly space varing civilization.
Speaker 4: And we check in on these markets as the latest
Speaker 4: indicated price of SpaceX shares is one hundred and sixty
Speaker 4: two dollars each, the IPO price one hundred and thirty
Speaker 4: four dollars.
Speaker 3: We look at the Nasdaq one hundred ed are we're
Speaker 3: up rockit rightti percent.
Speaker 4: Yeah, and look, this is about geopolitics, this is about
Speaker 4: hopes on some sort of deal and are you with
Speaker 4: Iran in the United States? But thus far we are
Speaker 4: completely focused on the impact of this IPO.
Speaker 2: Yeah.
Speaker 5: Look, there is a lot of evidence that whatever asset
Speaker 5: class you look at, people are trying to be positioned
Speaker 5: to play this IPO in the moment when we start
Speaker 5: trading imminently, starting trading indicated right now to open at
Speaker 5: one hundred and sixty two dollars each.
Speaker 2: We price the IPO one hundred and thirty five.
Speaker 5: But loads of disappointed people on the institutional side and
Speaker 5: the retail side.
Speaker 3: Yeah, who didn't get allocations.
Speaker 4: But if you've got an allocation, you're looking at maybe
Speaker 4: a twenty percent pop if it opens at that level.
Speaker 4: Your hira a land is down at the Nasdaq for us.
Speaker 3: What are you hearing? What are you seeing?
Speaker 7: Well, the fanfare from the opening well is over, but
Speaker 7: we still have legions of Elon Musk fans outside and
Speaker 7: some movement behind me on the Nasdaq floor. But as
Speaker 7: you guys were saying, we've gotten a series of indications
Speaker 7: throughout the morning and they've continued.
Speaker 3: To edge lower. As traders work through.
Speaker 7: The price discovery process. The latest indication is one hundred
Speaker 7: and sixty two dollars a share, down from earlier levels
Speaker 7: that were around one seventy five. Even so, that is
Speaker 7: above the one hundred and thirty five IPO price and
Speaker 7: does imply a valuation of some two point one trillion dollars,
Speaker 7: meaning SpaceX would still rank among the most valuable companies
Speaker 7: in the world from its very first trade.
Speaker 5: One sixty two a share twenty percent from the IPO price, exactly,
Speaker 5: implying a market value roughly two point one trillion dollars.
Speaker 5: Bloombok to your heart and end back throughout the hour
Speaker 5: at the Nasdaq. Let's talk about SpaceX. Christian Garrett one
Speaker 5: three seven venches, managing partner. SpaceX was one of the
Speaker 5: first investments that one three seven Benches made net net.
Speaker 5: In the end, the state worth billions and billions of dollars.
Speaker 5: And you've been with the company as its story changed,
Speaker 5: started with reusability and rockets. It's a future of AI
Speaker 5: and the enterprise. I just ask you, Christian, to reflect
Speaker 5: on what this IPO represents to you in the firm.
Speaker 8: Well, you know, first off, we're extremely excited for the IPO.
Speaker 8: It's a great milestone, but you know, as long term investors,
Speaker 8: this is just the beginning of the journey.
Speaker 2: For the Company'd say that, of course, Look.
Speaker 8: I think you know, the company, like you mentioned, has
Speaker 8: gone through this evolution, and many things have grown in
Speaker 8: the vision or scope, but many things have stayed the
Speaker 8: exact same. The company has always had the mission to
Speaker 8: make humanity multiplanetary, to expand consciousness across the universe, and
Speaker 8: they knew that they had to find incredible business models
Speaker 8: where they had advantages in order to fund that vision.
Speaker 8: They started by really bringing launch back to America, which
Speaker 8: in and of itself is an incredible thing to be
Speaker 8: a part of. They were the first company to build
Speaker 8: a reusable rocket, a partially re usable rocket, which dramatically
Speaker 8: dropped costs for launch. That advantage gave them the infrastructure
Speaker 8: to build Starlink, which is the world's largest constellation, and
Speaker 8: from there you're seeing that they have the advantage to
Speaker 8: build infrastructure terrestially and hopefully in orbit for data centers. A. L.
Speaker 4: Musk We started the show saying, just a ten percent
Speaker 4: chance that was survival. Was that what you thought when
Speaker 4: you first were getting under the skin of this company
Speaker 4: at one, three seven, Did you have bigger bets from
Speaker 4: that in terms of thinking it'd be more than ten
Speaker 4: percent probability? And where do you see your holdings going
Speaker 4: longer term?
Speaker 8: I think, guys, investors, you always can have some revisionist
Speaker 8: history sometimes and so I'm sure we were always extremely
Speaker 8: confident in the company. But look, I mean, I think
Speaker 8: there's just been multiple points of inflection for the business,
Speaker 8: and so I think there's high confidence that NASA really
Speaker 8: we needed launch capacity to come back to the state.
Speaker 8: So it was an understandable bet back in the day
Speaker 8: when my two partners were at Founders Fund in one
Speaker 8: of the early investment in the company. When we continue
Speaker 8: to invest when what the Seven Ventures was formed two ten,
Speaker 8: twenty eleven onward and inve in the company every single
Speaker 8: year for sixteen years, I think the bet still remain
Speaker 8: the same, which was fundamentally.
Speaker 2: After they nail launch.
Speaker 8: After the Nail reusability, you then were making a future
Speaker 8: bet on Starlink, which was unclear, but the technology was
Speaker 8: proven and in just a couple of years that business
Speaker 8: went from zero dollars in revenue to over eleven billion
Speaker 8: dollars in revenue and the largest constellation. I think you're
Speaker 8: seeing a similar inflection point now where you're betting on starship,
Speaker 8: you're betting on data centers in space, and you have
Speaker 8: early data and indications that many investors, including ourselves, are
Speaker 8: extremely confident in, and I think other people will see
Speaker 8: that same execution. That's basics is historically they're going to
Speaker 8: continue to do in the future.
Speaker 2: They're doing this IPO. They need capital.
Speaker 5: That's why you know he could in the end he
Speaker 5: got there when musc was speaking to Jamie Diamond, Well,
Speaker 5: we need capital.
Speaker 2: How do you expect them to deploy?
Speaker 5: That is a completely separate question, right The thing that's
Speaker 5: missing in their perspectus is where the Capex plans. What
Speaker 5: do you see happening in the first instance, Christian, I.
Speaker 8: Think the company has been pretty consistent publicly and talking
Speaker 8: about of their plans. You know, Brett Johnson just did
Speaker 8: a great interview with the friend of ours of the
Speaker 8: firm having Makavin Baker, which was great and they talked
Speaker 8: a lot about one the infrastructures build out data centers,
Speaker 8: I think terrestrially, and you see with XAI, you know
Speaker 8: a lot of the Capex investments for that young company
Speaker 8: over the last couple of years that investors have been
Speaker 8: trying to understand. And then obviously data centers in space
Speaker 8: is going to be a huge CAPEX investment, their continued
Speaker 8: investment starship development. But for the most part, I would
Speaker 8: say it's going to be heavily focused on data centers
Speaker 8: within the XAI business because.
Speaker 4: That almost was what shops everyone right head in the
Speaker 4: S one the total addressable market more than twenty eight
Speaker 4: trillion dollars was like enterprise application.
Speaker 3: It was AI was really where a lot of this
Speaker 3: is coming from.
Speaker 8: Yeah, absolutely, I think the company really sees that business
Speaker 8: line being a massive opportunity and quite frankly, if you
Speaker 8: look at their advantages going after that, it's fundamentally driven
Speaker 8: by cost structure. Right, they have infrastruts, they have a platform,
Speaker 8: they can deliver capabilities at a lower costs and get
Speaker 8: to scale that other people can't. And I think one
Speaker 8: of the great touch points for that is if you
Speaker 8: look at their Classes one and two data centers and
Speaker 8: you look at the business that they just launch on
Speaker 8: the compute side, they're giving you signal that terrestrially this
Speaker 8: can be a massive business. So in orbit, it will
Speaker 8: be a much much larger one. They're on a twenty
Speaker 8: six billion dollar run rate for their interrestrial compute business
Speaker 8: and those are just two deals within a month. Imagine
Speaker 8: where this business is going to be in ten years.
Speaker 5: I think there are questions from a lot of investors
Speaker 5: will hold on, why aren't you using that capacity for
Speaker 5: your own models, either training or on inference, and we
Speaker 5: will get to that. Christian Garrett, partner at one three
Speaker 5: to seven stays with us. One quick note, look at
Speaker 5: shares of rocket Lab actually down now about six percent.
Speaker 5: That was selling everywhere right when we started to get
Speaker 5: those indications of SpaceX. However, it was up in the
Speaker 5: pre market. Nasdak announced it will be one of the
Speaker 5: five companies joining the Nasdaq one hundred index on June
Speaker 5: twenty second, And obviously like highly analogous with SpaceX, but
Speaker 5: the distant, small number two launch provider in the United
Speaker 5: States right now, and now.
Speaker 4: We go back to the number one because coming up
Speaker 4: SpaceX is launching onto the public markets. But it's about
Speaker 4: far more than rockets. So we're just talking. We're going
Speaker 4: to delve ever more into this AI growth story.
Speaker 3: This is bloombg Tech welcome back.
Speaker 4: All in on this record SpaceX IPO, which we understand
Speaker 4: the shares are indicated to open at one hundred and
Speaker 4: sixty dollars per share, that is nineteen percent above the
Speaker 4: IPO price. Many Singh is our global head of tech
Speaker 4: research bloomg Intelligence, and he joins us along with Christian
Speaker 4: Garrett from one three seven Ventures, who has been investing
Speaker 4: round after.
Speaker 3: Round, and SpaceX from the venture side.
Speaker 4: Mandy, you're out with new research stating that xai could
Speaker 4: soon dominate SpaceX's sales by the end of the year.
Speaker 3: This is an AI company. Walk us through.
Speaker 9: You're thinking, yeah, I think the two recent deals and
Speaker 9: Tropic and Google. I mean they add almost twenty six
Speaker 9: billion dollars in recurring revenue, and we know cloud is
Speaker 9: a very high, stable margin business and so this is
Speaker 9: no different. You know, they have become a neo cloud
Speaker 9: AI infrastructure player overnight, and no one really saw this
Speaker 9: coming because the focus was clearly on the space launch
Speaker 9: business and the starlink business. But I think the recurring
Speaker 9: revenue gives them a lot of stability in terms of
Speaker 9: driving that top line growth, and they're showing a lot
Speaker 9: of capex sufficiency. That's the other aspect about what they've
Speaker 9: done here.
Speaker 5: So team, there's a discrepancy here, right. So Christian and
Speaker 5: the team at one three seven started investing when this
Speaker 5: was about reasonability and rockets. The pitch for this IPO
Speaker 5: is a future where the entire TAM basically twenty six
Speaker 5: point five trillion is enterprise AI. Your thesis is based
Speaker 5: on them being a neocloud running out capacity. When does
Speaker 5: GROC start making money? When do the models become valuable?
Speaker 9: So that's where I think if they close the Cursor
Speaker 9: deal within the first thirty days, I mean that's huge
Speaker 9: in terms of improving rock model and coding agent is
Speaker 9: the real success story when you think about llms. That's
Speaker 9: where every frontier lab is making money. Guess what Cursor
Speaker 9: is the top asset outside of the frontier labs when
Speaker 9: it comes to coding agents. So a huge acquisition. I
Speaker 9: think they will close it and that will really beef
Speaker 9: up you know the grock side of things where it's
Speaker 9: mostly consumer subscriptions and we know that's not the high
Speaker 9: growth drivers. It has to be Cursor.
Speaker 4: I mean, Christian go up through the thinking for us
Speaker 4: because initially you need and reaction might be why.
Speaker 3: Have they got spare capacity from that.
Speaker 2: That was kind of my point.
Speaker 4: Compute, if it's not being put and deployed into groquai,
Speaker 4: will they be able to have more and more to
Speaker 4: sell to Athropic, to Google and others, or they get's
Speaker 4: not using it themselves.
Speaker 8: One of the fascinating things about the company is actually
Speaker 8: the speed that they've gotten this capacity of, and that
Speaker 8: changes the underwriting here. If you look at Colossus one
Speaker 8: and two, some of the fastest data centers built right
Speaker 8: within the ecosystem for these kind of neoclouds focused on
Speaker 8: AI compute. Colossus three obviously a project that's coming online,
Speaker 8: and so I do think that what you're going to
Speaker 8: see is that they build these data centers faster, cheaper,
Speaker 8: and that gives them sphare capacity on the older ones
Speaker 8: to be able to offer it for the hyperscalar business.
Speaker 8: And then companies like Cursor, which obviously the acquisition probably
Speaker 8: closes after the listing, and then the Grock models will
Speaker 8: give them their own kind of first part of the
Speaker 8: enterprise AI offerings that they can use that compute for.
Speaker 8: And I think a lot has publicly said that they
Speaker 8: want to work with their partners, you know, if demand
Speaker 8: drastically increases, they may take some of that capacity back
Speaker 8: the older capacity. If you demand continues a scale, but
Speaker 8: they build capacity at a similar rate, then there's more
Speaker 8: than enough to go around for everyone. I think once again,
Speaker 8: it's just the company realizing what are their inherent advantages
Speaker 8: and it's really building infrastructure, and so I think that's
Speaker 8: fundamentally the that you want to make is can they
Speaker 8: build infrastructure, can they vertically integrate.
Speaker 2: And cut costs?
Speaker 8: And does that give them some advantage on these huge markets?
Speaker 5: If you look inside the tin can and where the
Speaker 5: tin cans are a lot of differences between Colossus one
Speaker 5: and Colossus two and three. Bring it a bit more
Speaker 5: about that later, what happens next for the company. And
Speaker 5: you know, if you're high up the cap table as
Speaker 5: a VC that's been on the long journey, there's a
Speaker 5: lot of daylight between present day and the future. It's
Speaker 5: still all predicated on Starship working and being reusable.
Speaker 2: How much do you think about.
Speaker 8: That, Yeah, Starship's a huge piece of the equation. It's
Speaker 8: what unlocks you know, the Version three satellites for Starlink.
Speaker 8: It's what helps obviously unlock and be able to launch
Speaker 8: data centers in space. It's what gets to the Moon,
Speaker 8: is what gets the Mars. It's a very important piece
Speaker 8: to the platform. The businesses you see if you look
Speaker 8: at Starlink has just been built on the Falcon nine platform, right,
Speaker 8: if you look at their AI compute business.
Speaker 2: That's terrestrial.
Speaker 8: So there's a lot of scale for the business on
Speaker 8: just where they are today with the current sets of
Speaker 8: launch capabilities. But Starships is a huge a huge driver
Speaker 8: for that, and quite frankly, I think it's one of
Speaker 8: these things that is as an American and I think
Speaker 8: for everyone around the world, that you want to root
Speaker 8: for because SpaceX is the launch provider for the entire world. Right,
Speaker 8: most of the world has works with them, and they
Speaker 8: are all on the same boat of really wanting this
Speaker 8: company to succeed because of what they've unlocked for I
Speaker 8: think the country here in the States and on our
Speaker 8: allies as well. By bringing launch capacity back, Starship's going
Speaker 8: to take that to a next level where I think
Speaker 8: it's going to unlock not just new opportunities in new markets,
Speaker 8: but also help more and more businesses be formed in space.
Speaker 8: You know, the Falcon nine platform led to companies like
Speaker 8: Varda being formed. What happens when Starship, you know, reaches
Speaker 8: the kind of scale and capacity that SpaceX is targeting.
Speaker 8: What kind of businesses could be launched?
Speaker 10: Then?
Speaker 6: Right?
Speaker 2: We have no idea?
Speaker 8: Right, maybe instead of venture backed businesses, it turns out
Speaker 8: you can have small businesses and small business owners be
Speaker 8: able to build businesses in space.
Speaker 2: This is a totally new world that we're entering in.
Speaker 3: This is an ecosystem.
Speaker 4: This is maybe fueled and more angel investing, more venture
Speaker 4: capital investing, but more founders as well.
Speaker 3: But Mande the risks here?
Speaker 4: What should an investor keep in mind as we await
Speaker 4: the first trade?
Speaker 9: I mean, look, the valuation is already likely to exceed
Speaker 9: two trillion. So when I see that kind of market cap,
Speaker 9: even with the triple digit growth that I am baking
Speaker 9: in for the XAI side of things, I can't see
Speaker 9: you know how that you know, one point five trillion
Speaker 9: combined SpaceX and starlink valuation can be justified if my
Speaker 9: numbers for XAI are closed through you know, three to
Speaker 9: four hundred billion dollars with the growth rates. So I
Speaker 9: just find the valuation to be quite rich at this level.
Speaker 5: A lot of people I know that are already on
Speaker 5: the cap tables say they're thinking about the evaluation in
Speaker 5: twenty thirty or twenty fifty, and they work backwards. Mandeep
Speaker 5: Singh Bloomberg Intelligence leads our research of technology. Christian Garrett
Speaker 5: Investment Partner at one three seven, one of the early
Speaker 5: and durable investors on the SpaceX cap table.
Speaker 2: Coming up.
Speaker 5: SpaceX's IPO marks one of the most significant wind pools
Speaker 5: in bention capital history. We're going to discuss who the
Speaker 5: big winners and the big names on that cap table are.
Speaker 3: Character waiting with baited breath. But as we go to break,
Speaker 3: here's actually a.
Speaker 4: Live look at what's really happening right here, right now.
Speaker 4: A panel Chevron CEO Mike Worsty there see, speaking with.
Speaker 3: Amory Hold and Vern Houston follow along my lifego.
Speaker 9: The supply was.
Speaker 3: Shut off and so that's where you saw differentials getting
Speaker 3: very wide.
Speaker 2: But subsequently you know you've got supplied.
Speaker 3: Some of the venture firms that are back SpaceX.
Speaker 4: Are set to earn tens of billions of dollars in
Speaker 4: returns today. They include founders Fund and recent Horowitze Koa Capital.
Speaker 4: Brinberg's Ventures reporter Rebecca Torrance joins us now. I mean
Speaker 4: it's paper money, but it's big money.
Speaker 3: It's huge money.
Speaker 11: And I think one of the most interesting things about
Speaker 11: this is that not just SpaceX's early backers are going
Speaker 11: to make a huge wind fall off of this, but
Speaker 11: even some of.
Speaker 3: The late ones as well.
Speaker 11: So so Koya and Reeson Horowitz both came in fairly
Speaker 11: late relative to the entire life cycle of this company,
Speaker 11: you know, the multi decade history, and yet stand to
Speaker 11: make tens of billions of dollars off of this IPO.
Speaker 11: Of course, the same is true for some of its
Speaker 11: early backers as well, and long time eland Musk allies,
Speaker 11: including Valor equity partners and founders fund.
Speaker 5: Yeah, the founder's fund number, like you double check it
Speaker 5: fifty billion plus because you know, I was on stage
Speaker 5: with Tray Stevens the other day, one of the twelve
Speaker 5: investing partners at the firm. I think they did six
Speaker 5: hundred million over a many period of time. Like just
Speaker 5: talk about those two bigger beasts, right, So.
Speaker 11: I mean, I think it is it's really fascinating to
Speaker 11: see how Musk's early allies continued to back him. Of course,
Speaker 11: you know, across the lifetime of this company. First investments
Speaker 11: around two thousand and eight, two thousand and nine, and
Speaker 11: of course has been many years since then. Some of
Speaker 11: these were folks back from the PayPal days, for example
Speaker 11: Peter Thiel and you know early investors that believes in
Speaker 11: musk and it's base x before the space economy really
Speaker 11: took off.
Speaker 5: For Indreacing, this would be the biggest return in the
Speaker 5: firm's history doing both Rebecca Torrent's top job, Thank you
Speaker 5: very much. What does this IPO mean for other AI
Speaker 5: IPOs in the pipeline? Goldman SAX President and COO John
Speaker 5: Waldron thinks it's a step closer to a wave of listings.
Speaker 12: Seventy five billion dollar ipo, the largest in history. I
Speaker 12: think it presages the beginning of a pretty sizable wave
Speaker 12: of IPOs, which we're excited about. I also think it
Speaker 12: shows you that the capital markets, led by the US
Speaker 12: capital markets, but the global capital markets, are demonstrating a
Speaker 12: willingness to finance this AI infrastructure build and this building space,
Speaker 12: which is quite exciting.
Speaker 5: Pegas is founder in CEO and Isthuisman agrees, and it's
Speaker 5: invested in all three companies, SpaceX, Open AI and Anthropic.
Speaker 2: How difficult is that to pick the winner. It is
Speaker 2: not that difficult.
Speaker 13: Actually, I started investing in Spaceics first, and you know,
Speaker 13: I had a fantastic time, and you know, we continued
Speaker 13: seeing the growth of the Spacics. It was a space
Speaker 13: exploration company, and then started doing good in Sterling and
Speaker 13: Sterlink started expanding, and then came in open Ai and
Speaker 13: Nthropy and they were all you know, connected to each
Speaker 13: other in some sense. When Spacics started blooming, I think,
Speaker 13: you know, we were feeling confident enough. When OpenAI came in,
Speaker 13: we invested in OpenAI and then we followed it anthrofit.
Speaker 13: So it happened one after another.
Speaker 3: And there's room for all three.
Speaker 4: Look, I've spoken to Thrive when they raised their last round,
Speaker 4: and they are ride or dies, just open Ai. They
Speaker 4: don't believe in spreading your bets like this. But is
Speaker 4: it okay that they're all kind of in on the
Speaker 4: same business model?
Speaker 13: Here they are, But you know, AI is such a
Speaker 13: big market. I mean, there's so much opportunity. When we
Speaker 13: looked at OpenAI and they were doing good, at the
Speaker 13: same time, we found that, you know, Anthropy was focusing
Speaker 13: on more enterprise level, you know AI, so they're more
Speaker 13: focusing on the business to business side. They were more
Speaker 13: research oriented, so we felt that they have a different flavor.
Speaker 13: So you know, you like vanilized the same time you
Speaker 13: like chocolate as well. So you know, we kind of
Speaker 13: like invested in two different types of you know, AI
Speaker 13: in productor we're also interested in XAI. So you know,
Speaker 13: we thought that we'll actually take part in every single
Speaker 13: angles of the domains that this companies are focusing on.
Speaker 4: I think what's really interesting here, Ed, and I'm pranis
Speaker 4: to you is that, like if you think about Thrive,
Speaker 4: they're in SpaceX too, but at the time they weren't
Speaker 4: thinking of SpaceX as an AI company. Yeah, this has
Speaker 4: become quite a link power of play fore long.
Speaker 5: Yeah, and it's you know, Christian Garrett from one three
Speaker 5: seven Ventures is with us and we're going to speak
Speaker 5: to him later in the hour.
Speaker 2: Again.
Speaker 5: You know, the idea here is that the thesis is
Speaker 5: constantly evolving with SpaceX.
Speaker 2: You know.
Speaker 5: But when I read the prospectus, the tam number, the
Speaker 5: story that they're pitching investors of the future, I bet
Speaker 5: you it's very similar to what Anthropic and Open AI
Speaker 5: right in their perspectives. That's difficult to market it is.
Speaker 13: But you know, if you look at SpaceX, they're you know,
Speaker 13: I when I look at SPACEF I look at it
Speaker 13: as an AI energy and connectivity infrastructure conclom erate. You know,
Speaker 13: if you look at Starlink, I see the potential is huge.
Speaker 13: We have only ten million subscribed ten twelve million subscribers
Speaker 13: of space starlink right now. If you look at the
Speaker 13: number of Internet users in the world, there's six billion
Speaker 13: people using Internet and everybody is moving to sterling. So
Speaker 13: if you look at that way that Starlink has a
Speaker 13: huge potential. Then you look at their plan for what
Speaker 13: they're trying to do. They're trying to create AI infrastructure
Speaker 13: in the orbit. They can do it because they have
Speaker 13: launch capability and they can do it at a minimum cost.
Speaker 13: So if you look at SpaceX, I mean they're playing
Speaker 13: a different tame. They're not only you know, thinking that
Speaker 13: they're going to become an AI company, but they're an
Speaker 13: infrastructure company. Down the line, you'll be able to help
Speaker 13: open AI and anthropy as well, to be some kind
Speaker 13: of the backbone of the whole software AI development you're
Speaker 13: seeing right now.
Speaker 4: Yes, briefly, SpaceX is one of your most significant positions
Speaker 4: valued it over a billion dollars as it stands, and
Speaker 4: is do you hold it for the long term?
Speaker 13: I will hold it, actually, and I feel very positive
Speaker 13: that the starlink usage is going to grow significantly. Every
Speaker 13: single car, every single plane, every single person in the world,
Speaker 13: every big portion of the six billion Internet users are
Speaker 13: also going to come under starlink usage. And I feel
Speaker 13: that this company will grow at least thirty percent each
Speaker 13: year from here on for the next ten twenty years.
Speaker 13: And I want to hold it for the long term.
Speaker 4: Pegas has fouan a CEO, and he Swusamon fantastic to
Speaker 4: have you staying up late for us.
Speaker 2: You are.
Speaker 4: We just get the latest indications of prices. SpaceX shares
Speaker 4: indicated to open ed at one hundred and fifty nine
Speaker 4: dollars ninety cents. That's eighteen percent above its IPO price.
Speaker 4: Coming up, we're delving evermore into spaces is Blockbuster Wall
Speaker 4: Street debut critical test for the company of Elon Musk
Speaker 4: and what is therefore he worth more than a trillion
Speaker 4: dollars if we hold onto this number, you've got the dilute.
Speaker 5: Yeah, no, he would hear a trillion s status if
Speaker 5: it was one hundred and thirty eight dollars a share,
Speaker 5: so at one p ninety fully diluted, the company's worth
Speaker 5: two point two trillion, which say it out loud again,
Speaker 5: two point two trillion. Maybe we'll see there's a lot
Speaker 5: more to come. State of play. It's not yet trading.
Speaker 5: These are indications that we're getting ahead of the start
Speaker 5: of trading on the Nasdaq in New York City and
Speaker 5: in Texas where Elon musk folt this morning. And by
Speaker 5: the way, markets are on a rocket ride today. A
Speaker 5: lot of volatility and if you look at different assets.
Speaker 5: Part of that story is I think some people are
Speaker 5: trying to work out how they have some liquidity to
Speaker 5: play the biggest side in history.
Speaker 3: Enough puns that Lovelow not nearly enough puns bring them on.
Speaker 2: Says Bloomberg Tech ely.
Speaker 5: Welcome back to Bloomberg Tech, SpaceX and the biggest IPO
Speaker 5: in history. It's trading debut is imminent. First, the markets.
Speaker 5: We're now up almost a percentage point on the NASAK
Speaker 5: one hundred, but we have swung between gains and losses
Speaker 5: all morning, and there's a lot of evidence out there,
Speaker 5: along with geopolitical risk that people are searching for a
Speaker 5: plan on how they are going to play the IPO
Speaker 5: when trading starts if they didn't get an allocation on
Speaker 5: the institution or the retail side. That's Part one, Part two.
Speaker 5: Elon Musk speaking earlier this morning at Star Based, Texas.
Speaker 2: There are always problems on Earth. There are always problems
Speaker 2: on Earth.
Speaker 6: There are always things that we wish to be better,
Speaker 6: that we want to solve here.
Speaker 2: On Earth, and we should solve them.
Speaker 6: But there also have to be things that get you
Speaker 6: excited about the future, that make you glad to wake
Speaker 6: up in the morning because you can't wait to see
Speaker 6: what happens next. And that's the future that SpaceX wants
Speaker 6: to bring to.
Speaker 4: You, and the market can't wait to see what happens
Speaker 4: with the price indicated to make it the sixth most
Speaker 4: valuable player on the Nasdaq one hundred as and when
Speaker 4: it joins that benchmark, you hire an and you're at
Speaker 4: the Nasdaq.
Speaker 3: What are you watching?
Speaker 7: It seems like we're getting closer and closer to that
Speaker 7: first trade, Caroline. You've gotten a series of indications and
Speaker 7: they've continued to edge slightly lower as they continue to
Speaker 7: work through the price discovery process. The latest indication is
Speaker 7: one hundred and five fifty five dollars a share, that
Speaker 7: is up fifteen percent from the one hundred and thirty
Speaker 7: five dollars IPO price and implies a valuation of two
Speaker 7: trillion dollars. That means SpaceX would still rank among the
Speaker 7: most valuable companies in the world, more valuable than the
Speaker 7: likes of Meta, Saudi Aramco, and even Tesla itself.
Speaker 5: Blue Mix you a hire and and back throughout the hour,
Speaker 5: every blow by blow from the Nasdaq. SpaceX also recently
Speaker 5: unveiled a detailed look at an AI data center satellite
Speaker 5: SpaceX plans to build. It's a big development in the
Speaker 5: final days that drove this historic IPO. The record breaking
Speaker 5: seventy five billion dollar market debut is imminent. Bloomberg's chief
Speaker 5: Space correspondent, Lauren Grushes with us and still with us.
Speaker 5: Christian Garrett One threw seven Manager a Ventures managing partner,
Speaker 5: investing partner, one of the sort of long term investors
Speaker 5: on the cap table at SpaceX as a private company
Speaker 5: and now as a public company.
Speaker 2: Lauren out of this world right.
Speaker 5: The whole point here is that SpaceX wants to get
Speaker 5: Starship right so it can deploy data centers in the
Speaker 5: form factor of a satellite. We have basically what a
Speaker 5: renderings that Elon mush shared with us the other day
Speaker 5: explain the basics of this. I know you don't have
Speaker 5: a degree in astrophysics, but well, I've.
Speaker 14: Been covering the company long enough. I hopefully I've picked
Speaker 14: up some stuff along the way. No, but you said it.
Speaker 14: Starship is key to all of this, right, So, originally
Speaker 14: it was debuted as the vehicle that is going to
Speaker 14: fulfill SpaceX and Eli Musk's dream of sending people to Mars,
Speaker 14: and that's still the goal, but in the same time
Speaker 14: they're also putting all of their hopes and dreams on
Speaker 14: this rocket as well. It's going to be responsible for
Speaker 14: launching the much larger, upgraded Starlink satellites, and then also
Speaker 14: it'll be crucial for sending humans to the Moon for NASA,
Speaker 14: and then of course it'll be the key that sends
Speaker 14: these data center satellites into space. So that definitely has
Speaker 14: to work, and it's had a bit of a rocky
Speaker 14: road of development up until now. It's also meant to
Speaker 14: be the first fully reusable rocket that's ever developed. I mean,
Speaker 14: that is the holy grail of spaceflight. So if they
Speaker 14: can get it working, that will be key to all
Speaker 14: of the success. But that you know, win that will happen,
Speaker 14: how that will happen if things get descoped along the way.
Speaker 14: I think that's what we will be following now as
Speaker 14: SpaceX as a public.
Speaker 4: Company, and we follow the price indications. SpaceX shares now
Speaker 4: indicated to open one hundred and fifty dollars as we stand,
Speaker 4: eleven percent above is IPO pricing. Christian, that's an enormous
Speaker 4: win for your venture fund and for the very early
Speaker 4: bets you took in this company. Does it give you
Speaker 4: any anxiety that the.
Speaker 3: Business model just gets saying bigger and bigger and bigger.
Speaker 4: I mean, talk to us about the orbital data centers
Speaker 4: and how swiftly you really think that can get going
Speaker 4: and almost them piece by piece, stress testing.
Speaker 3: The potential of that.
Speaker 8: Well, you know, I think historically the company has always
Speaker 8: set very very aggressive and ambitious timelines and goals, and
Speaker 8: at times they've exceeded them. At times things take a
Speaker 8: little longer, but they've always delivered on what the ultimate
Speaker 8: goal and outcome was, and whether that was getting to
Speaker 8: partial re usability, whether that was building and launching the
Speaker 8: Starlink constellation starships, development timelines, figuring out the physics engineering
Speaker 8: around the Raptor engine, and so this is just another
Speaker 8: example where they've in my opinion, some of the best
Speaker 8: engineering teams in the world are at this company, and
Speaker 8: they have high conviction on their ability to deliver on this,
Speaker 8: and they set timelines to start launching these things within
Speaker 8: the next couple of years. And so I think historically
Speaker 8: the data has always shown the company is always right,
Speaker 8: and sometimes they're early, sometimes they are late, but they
Speaker 8: are always righting these things. And I think that's a
Speaker 8: fair bet to make again here, and I think we're
Speaker 8: going to see fairly soon the build out start happening.
Speaker 5: The plan is as early as twenty twenty eight for
Speaker 5: orbital day center deployment that was in the prospectus. I
Speaker 5: think what Christian's hinting at. But people phone me and say,
Speaker 5: is they see it happening sooner? But it's highly analogous
Speaker 5: with Starlink, So I think a lot of value Lauren,
Speaker 5: if you just catch up the Blombotech audience on the
Speaker 5: scale of Starlink today. That's not a space based data center,
Speaker 5: but it shows their competence in deploying satellites in constellation
Speaker 5: at scale.
Speaker 14: Absolutely, And when SpaceX was first saying they were going
Speaker 14: to do Starlink, with the numbers that they were saying,
Speaker 14: I mean they had projected at first a twelve thousand
Speaker 14: plus constellation and now they have over ten thousand satellites
Speaker 14: working in orbit, and I think a lot of us
Speaker 14: were kind of wondering how that was actually going to
Speaker 14: play out. And then look, now they are operating this
Speaker 14: massive system. They are the world's largest global satellite operator today.
Speaker 14: So I think they do have that advantage in being
Speaker 14: able to take the experience that they have from building
Speaker 14: and operating that Starlink system and they will apply it
Speaker 14: to this AI data center satellite. And that's and even
Speaker 14: Elon Musk said when he unveiled that design for the
Speaker 14: data center satellite is that he thinks it actually will
Speaker 14: be easier to design for. I don't know about that necessarily.
Speaker 14: I mean, if you look at those solar panels, those
Speaker 14: are pretty big solar panels, and they've also talked about
Speaker 14: launching up to one million satellites.
Speaker 3: That is a lot.
Speaker 14: Not saying it can't be done, but I do think
Speaker 14: it does pose some engineering challenges, but as Gwynn said earlier,
Speaker 14: SpaceX likes to tout that they just take the impossible
Speaker 14: and they make it late.
Speaker 5: Maybe the president's co SpaceX blooms Lauren Grush, thank you
Speaker 5: very much. Christian Garrett of one three seven Ventures stays
Speaker 5: with us. This is Bloomberg Tech, Friday, June twelfth, twenty
Speaker 5: twenty six. SpaceX is IPO, the biggest in history. Trading
Speaker 5: is imminent. SpaceX hasn't even started trading, and wool Street
Speaker 5: is already publishing price targets and U Street Research quick
Speaker 5: out the gate, initiating with a buy rating and a
Speaker 5: one sixty five target price. The firm's valuation case leans
Speaker 5: heavily on the businesses that are already making money in
Speaker 5: space and how that cash gets funneled into AI.
Speaker 2: Here's new streets. PF Feragu on Bloomberg Surveillance.
Speaker 15: Space today is a lot of cash flow. It's very
Speaker 15: cash generative. So telecom business is generating a lot of cash.
Speaker 15: And if you have access to your own cash flow
Speaker 15: in AI, you can buy your own infrastructure.
Speaker 2: That makes it much cheaper for you. You don't have
Speaker 2: to pay the margin.
Speaker 4: Let's keep the SpaceX conversation going Nancy Tangler, CEO CIO
Speaker 4: of Leff and Tangler Investments and independent but historically bullished
Speaker 4: background mask of Tesla.
Speaker 3: Do you want to.
Speaker 4: Be buying SpaceX shares if they open one hundred and
Speaker 4: fifty dollars as they're currently indicated to do so.
Speaker 10: Nancy, Caroline, we are buying them at the open, and
Speaker 10: it's not my preferred way of trading. I much rather
Speaker 10: have gotten an allocation. We're using the analogy to Amazon
Speaker 10: Public IPO in nineteen ninety seven. It was a company
Speaker 10: that was impossible to value because there were no earnings,
Speaker 10: only revenues, and this feels a lot more like that
Speaker 10: than it does Meta. So we're interested in owning it
Speaker 10: in our thematic portfolio, which has a theme of space,
Speaker 10: and then also in our growth portfolio. So those are
Speaker 10: the options that those are the places where we are
Speaker 10: putting it.
Speaker 5: Nancy, I wanted you to come on the program, and
Speaker 5: I'm speaking so honest with the Bloembo Tech audience because
Speaker 5: you're one of these investors of Tesla that gets access
Speaker 5: to the company.
Speaker 9: Right.
Speaker 5: I'm thinking about when you were at the Robotaxi launch event.
Speaker 5: Where do you stand. What is your thesis on the
Speaker 5: combination of SpaceX with Tesla.
Speaker 10: Oh yeah, so, Ed, I do believe that is going
Speaker 10: to happen. I mean, Tesla already owned shares in SpaceX
Speaker 10: through the XAI acquisition. That's the space SpaceX made. So
Speaker 10: it's about a two billion dollar steak. It seems to
Speaker 10: me to be just a beginning. And already SpaceX is
Speaker 10: the most vertically integrated AI company if you think about
Speaker 10: they have the capital, they've got the data, they've got
Speaker 10: the large language models, they've got the hardware, the engineering talent,
Speaker 10: the manufacturing talent. So we think it makes imminent sense
Speaker 10: for them to combine with Tesla. And I don't know
Speaker 10: if it's in twenty twenty seven or early twenty twenty eight,
Speaker 10: but I think you'll begin to see evidence of a
Speaker 10: tighter and tighter relationship as we move forward.
Speaker 4: The public investor perspective, let's get the private investment perspective.
Speaker 4: Christian Garret went through some venture, is still with us.
Speaker 4: Do you think it makes strategic sense at least for
Speaker 4: Tesla and SpaceX, comebine.
Speaker 8: I think the businesses have obviously a lot of commonalities,
Speaker 8: a lot of share projects, the Terrifat project being one example,
Speaker 8: and so you know, obviously, I think it's a great
Speaker 8: sort of discussion point to sort of theorize what would
Speaker 8: happen to these companies integrated together. I think they have
Speaker 8: a credible partnership as stands, and so in neither sent there,
Speaker 8: I think it's super exciting the work that they're doing together,
Speaker 8: and for that to happen, it's exciting. If it doesn't happen,
Speaker 8: it's also exciting nonetheless, and both are obviously generational businesses.
Speaker 5: We have live pictures from the Nasdaq. We believe that
Speaker 5: the trading of SpaceX in the United States is imminent,
Speaker 5: something that we've been discussing throughout the hour for actually
Speaker 5: to be fair for like days, Nancy Tengler is, if
Speaker 5: you've just put to one side the vision of the
Speaker 5: future and the twenty six point five trillion AI tam
Speaker 5: that SpaceX presented, how much does your team focus on
Speaker 5: the here and now of their data center business or
Speaker 5: neo cloud business that they've done with Anthropic and Google.
Speaker 10: Yeah, I think it's important. By the way, I loved
Speaker 10: what Christian just said. It's exciting either way. I also
Speaker 10: love to headline on Bloomberg that said this company is
Speaker 10: cheap on a price to Cosmo ratio. So I think
Speaker 10: this is a name that is more of a narrative
Speaker 10: name for us than it is valuation. Our thematic portfolio
Speaker 10: does not focus on valuation. It focuses on obviously themes,
Speaker 10: and so I don't know how you quantify some of this.
Speaker 10: I think what's interesting is that the cash incinerator right
Speaker 10: now is AI. But that is, as you just pointed out,
Speaker 10: twenty six point five percent of the TAM of twenty
Speaker 10: eight point five I'm sorry's twenty six point five trillion
Speaker 10: of the twenty eight point five tams. So I think
Speaker 10: you have to think about the data center business. It's
Speaker 10: what excites us to a great extent. But Starship, you know,
Speaker 10: as required as we know. I think they'll get there.
Speaker 10: I have no doubt they'll get there. It's just a
Speaker 10: question of when. So we're really buying the future when
Speaker 10: we buy this company. In our time horizon is five
Speaker 10: to ten years.
Speaker 3: And you are buying at the open.
Speaker 4: Nancy Tanger of Leafa Tenger Investments a joy to speak
Speaker 4: with you today, Thank you very much. Indeed, look, we've
Speaker 4: got to get to bloembgs Bailey Lipschaltz, who has been
Speaker 4: driving the coverage of this IPO since we first got
Speaker 4: the confidential filings, the actual filings, and now we wait
Speaker 4: with baited breath.
Speaker 3: We are but moments away from the opening trade, Bailey.
Speaker 16: We are but moments away from a historic moment. And
Speaker 16: it's going to be fascinating to see if we do
Speaker 16: avoid a Facebook two point zero, and just to see
Speaker 16: how this not only opens, how it trades, and really
Speaker 16: when we start to see retail investors flowing through and
Speaker 16: placing those orders, what that ultimately looks like and does
Speaker 16: to the stock, just given the fact that this is
Speaker 16: going to be potentially pretty volatile.
Speaker 2: It's so Bailey.
Speaker 5: The latest indication indication of opening is one hundred and
Speaker 5: fifty dollars a share, eleven percent above the IPO price
Speaker 5: and implies a market value of roughly just two trillion.
Speaker 2: Just you and I reported out the numbers.
Speaker 5: Right on the retail allocation long only asset allocation. Somebody's
Speaker 5: going to be disappointed. How does that translate when we
Speaker 5: do start trading.
Speaker 2: Everyone is disappointed. Let's just state it that way.
Speaker 16: Everyone pretty much for a ontents and purposes, didn't get
Speaker 16: what they were hoping for. The big question now is
Speaker 16: does that drive follow through buying or does it irk
Speaker 16: people when they say, you know what, I'll just provide
Speaker 16: some liquidity, sell the stock, hopefully it a nice ten
Speaker 16: to eleven percent gain, and move on with my life.
Speaker 16: Because the big question when we do see these debuts
Speaker 16: is where does it open. Do we see steady follow
Speaker 16: through to the upside, and how does the volatility play out?
Speaker 16: Are people holding on for massive gains, providing quick quick
Speaker 16: ins and outs, or is this something that we're going
Speaker 16: to be really tracking in the next week, in the
Speaker 16: next five trading days.
Speaker 4: And I bring back Christian Garrett, of course isn't disappointed
Speaker 4: because he's been in this company from almost its birth,
Speaker 4: and you've been reallocating, upping the investment each and every round.
Speaker 4: We know lookups expiring about August, So what happens to
Speaker 4: your holding?
Speaker 8: So us and alongside many of the investors who've been
Speaker 8: invested for a long time that are running institutional firms,
Speaker 8: I'll have the same dynamic where we will distribute back
Speaker 8: to our alps and let them make their own decisions.
Speaker 8: And within that, I think one of a lot of
Speaker 8: the articles that have come out which have been great
Speaker 8: really highlighting how large a position SpaceX is for a
Speaker 8: lot of these institutional investors. And so you know, whether
Speaker 8: it's an endowments or a pension plan, whether it's you know,
Speaker 8: a friend or a family office or other different types
Speaker 8: of institutions, foundations, all these folks are going to end
Speaker 8: up receiving their distribution of the stock. And then many
Speaker 8: of them are not going to be selling right. Some
Speaker 8: may have liquidity needs, and I think that's a decision
Speaker 8: that each LP will make.
Speaker 5: Something that you touched on earlier is critically important. We
Speaker 5: might get interrupted any moment, you know that, But like
Speaker 5: there have been regular liquidity events for SpaceX staff and employees.
Speaker 5: There will be more than four thousand millionaires minted at
Speaker 5: SpaceX from this transaction. They chose to stay, We've reported
Speaker 5: many of them tried to get more shares through the
Speaker 5: direct share program and otherwise speak to that, like what
Speaker 5: is that signal to you?
Speaker 8: So SpaceX really pioneered the staying private for a longer trend.
Speaker 2: Our firms started eleven really.
Speaker 8: On the heels of Facebook, which we really is the
Speaker 8: first one, and SpaceX really took it obviously to another level.
Speaker 8: One of the dynamics that they did in order to
Speaker 8: stay private longer was offer regular locruity events for their employees.
Speaker 8: During that dynamic, over almost two decades, employees have had
Speaker 8: ample time to get liquidity and cover different needs. And
Speaker 8: I think that's something that's underappreciated about the business. Is
Speaker 8: not just the impact they had on the venture ecosystem, right,
Speaker 8: So much of what we're experiencing is because of how
Speaker 8: much capital is flooded in as companies say private longer,
Speaker 8: but in particular, a lot of the employees have already
Speaker 8: had their chances of liquidity, and so as I mentioned,
Speaker 8: a lot of these folks are long term holders and
Speaker 8: are not selling as well.
Speaker 4: We're getting excitement building from the floor of the Nasdaq
Speaker 4: as we await the opening trade of SpaceX, most recently
Speaker 4: indicated at one hundred and fifty dollars, rating it at
Speaker 4: about a market capitalization if you're looking at a fully
Speaker 4: dilated diluted basis of just under two trillion dollars, I
Speaker 4: make it the sixth biggest company on the nasat one hundred,
Speaker 4: just below Amazon, just above Broadcom and Bailey. You've been
Speaker 4: talking about how integral this is to the retail investor.
Speaker 4: How much allocation do the retail investor get? How much
Speaker 4: did they get pump up the stock?
Speaker 16: We reported a twenty percent, so about fifteen billion dollars,
Speaker 16: which is a large number, granted is we'd also reported
Speaker 16: they put in orders for about one hundred billion, So
Speaker 16: again a lot of people getting far less than they
Speaker 16: were expecting. And the big thing is going to be again,
Speaker 16: are these individual investors going to show up in size?
Speaker 16: If you put in for thirty thousand dollars worth of
Speaker 16: the stock and you've got five thousand, are you going
Speaker 16: to then still buy twenty five thousand in the open market.
Speaker 16: The other thing to keep in mind too is the
Speaker 16: fact that I would say the vast majority of individuals
Speaker 16: use market orders. They don't set the price, they buy
Speaker 16: wherever they can.
Speaker 5: Get filled, and most Bailey Lipshaltz, Christian Garrett one through
Speaker 5: seven ventures stay with us. Thank you both very much.
Speaker 5: SpaceX begins training today under ticker sp c X indications
Speaker 5: one hundred and fifty dollars a share, eleven percent premium on.
Speaker 2: The IPO price of one thirty five.
Speaker 5: They raised one hundred seventy five billion dollars largest IPO. Ever,
Speaker 5: the deal was so heavily oversubscribed, especially in the retail category.
Speaker 5: As Bailey outlined, Elon Musk promised loyal Tesla shareholders priority
Speaker 5: access to the SpaceX IPO for a long time.
Speaker 2: But did they get it?
Speaker 5: And how is Tesla's retail base reacting to SpaceX is listing.
Speaker 5: Alexandra Mertz, better known as test Labuma Mamma, one of
Speaker 5: Tesla's most prominent retail shareholders and investors that are active
Speaker 5: in the investor retail base, joins us. Now, my understanding
Speaker 5: is that you did not try and get an allocation
Speaker 5: in this IPO. That you won't try, alex stay put caro.
Speaker 3: We have an opening trade.
Speaker 4: SpaceX opens at one hundred and fifty dollars. That is
Speaker 4: an eleven percent increase on one hundred and thirty five
Speaker 4: dollars pricing. Extraordinary day ed you have followed this tick
Speaker 4: by tick, moment by moment, but we understand that an
Speaker 4: opening trade has come in at one hundred and fifty
Speaker 4: dollars shares open for SpaceX. Then as that crowd goes wild,
Speaker 4: there we are a.
Speaker 5: Percent and where the IPO price at one hundred and
Speaker 5: thirty five, that's going to jump around. It's going to
Speaker 5: be a long few hours of trading. A market value
Speaker 5: of about one point ninety six trillion dollars, but on
Speaker 5: a fully diluted basis just a touch above two trillion.
Speaker 5: I think, I think we'll go live to the Nasdaq
Speaker 5: and Bloomberg's you hira and end you hira?
Speaker 2: What are you seeing?
Speaker 7: Hi? The moment is here, and there it is. SpaceX
Speaker 7: has officially begun trading, the stock opening at one hundred
Speaker 7: and fifty dollars a share above its one hundred and
Speaker 7: thirty five dollars IPO price, giving investors an immediate gain,
Speaker 7: as you guys said, of eleven percent. That opening price
Speaker 7: now values a company at approximately less than two trillion dollars,
Speaker 7: but instantly putting SpaceX among the most valuable companies in
Speaker 7: the world. So, after a morning of shifting indications and
Speaker 7: intense anticipation with everyone here from the president of SpaceX
Speaker 7: the CFO, the market has finally delivered its first verdict
Speaker 7: on SpaceX. So now the focus will be whether those
Speaker 7: gains can hold. As trading gets underway.
Speaker 5: Bloomboks Jahia and at the Nasdaq, SpaceX opened eleven percent
Speaker 5: above its IPO price of one hundred and thirty five
Speaker 5: dollars you see on the screen trading around one hundred
Speaker 5: and fifty two to fifty three dollars per share and
Speaker 5: on a fully diluted basis at a value of just
Speaker 5: a touch over two trillion. Let's keep the conversation going
Speaker 5: and get packed to Alexandra Mertz, a Tesla investor, a
Speaker 5: retail investor and also LNF Investor Services CEO. You didn't
Speaker 5: buy into this IPO. You have a thesis? Why yes?
Speaker 17: And thanks for having me on this historic day and
Speaker 17: congratulation to the opening just when I was supposed to
Speaker 17: come on. Wasn't that funny?
Speaker 2: Now back to my thesis.
Speaker 17: My thesis is that Tesla and SpaceX will merge, and
Speaker 17: as all in Tesla investor, I would have had to
Speaker 17: sell Tesla, which I was not going to do. So
Speaker 17: my thesis is I'm going to hold these and in
Speaker 17: a couple of short weeks if I am right, they
Speaker 17: will announce this merger that will then be consummated in
Speaker 17: the first half of twenty twenty seven, and that Tesla
Speaker 17: shareholders will become SpaceX shareholders in this way, so no
Speaker 17: need for me to go into the IPO.
Speaker 4: Alexandra, you are a long term Elon Musk fan. Elo
Speaker 4: Musk has become the world's first trillionaire. As SpaceX jumps
Speaker 4: at the open well above two trillion dollars in terms
Speaker 4: of market capitalization, he becomes the world's first trillionaire.
Speaker 17: What do you think, Well, first of all, I'm not
Speaker 17: at all into this net worth porn. It's really something
Speaker 17: that I cannot get over. Elon Musk is a historic
Speaker 17: figure that is providing one hundred and forty thousand jobs,
Speaker 17: that has changed an industry in cars, an industry in space,
Speaker 17: that is going to change an industry in data centers.
Speaker 17: So whether he has a stock portfolio that's one trillion
Speaker 17: or not is just not relevant.
Speaker 2: Now.
Speaker 17: Having said that, what is relevant is the direct and
Speaker 17: indirect jobs he created and the many investors that he
Speaker 17: made rich, including many employees.
Speaker 2: We're seeing real acceleration now in the shares.
Speaker 5: We're at one hundred and sixty dollars per share shop
Speaker 5: about eighteen percent above the IPO price of one hundred
Speaker 5: and thirty five dollars a share, and a second I'll
Speaker 5: do the math on that. Alexandra Mertz outline her thesis
Speaker 5: that she believes a merger between SpaceX and Tesla is imminent.
Speaker 5: Bloomberg has not reported that. We did report prior to
Speaker 5: SpaceX merging with Xai privately that the boards of SpaceX
Speaker 5: and Tesla had discussed the idea.
Speaker 2: We just don't know.
Speaker 5: I'd also point out that this is much about not
Speaker 5: just economic ownership of SpaceX. Christian Garrett of one three
Speaker 5: seven Elon Musk has eighty four percent voting power post
Speaker 5: this trade. Why is that important to you as somebody
Speaker 5: that's been on the cap table for a long time.
Speaker 8: I think any investment in SpaceX, whether it was in
Speaker 8: the private markets, which was our experience historically, and then
Speaker 8: now obviously the company and the public markets, and that's
Speaker 8: a shared experience among a lot of us now at
Speaker 8: the company's public This is a lot of company that
Speaker 8: has a long term view. They're investing in really transforming
Speaker 8: humanity across all these different verticals.
Speaker 2: That Elon Musk is the swing factor.
Speaker 8: And Elon's a huge swing factor the visionary and I
Speaker 8: think fundamentally, you basically want to have a company that
Speaker 8: you know is going to be focus on the long term,
Speaker 8: and so that gives us the ability because the company
Speaker 8: the ability to focus long term, and I think that's
Speaker 8: really the mindset you need to look at this. It
Speaker 8: actually brings stability to the company, which is what you
Speaker 8: want when you're investing in something that's going after a
Speaker 8: multi generational opportunity.
Speaker 4: Alexandro, you go back to you because you have done
Speaker 4: years of due diligence on Tesla as a retail holder
Speaker 4: now one of the most vocal and well known retail
Speaker 4: investors on Tesla.
Speaker 3: Put your view to the.
Speaker 4: Retail investors trying to buy in to SpaceX, but whose
Speaker 4: friends around them are saying, have.
Speaker 3: You looked to the corporate governance? Are you worried about
Speaker 3: the dominance and the voting rights that Elon Musk has.
Speaker 3: Is that a win or a loss from your perspective?
Speaker 17: Well, first of all, retail shareholders were I'd be very privileged,
Speaker 17: especially the small ones. So I went through my followership
Speaker 17: this morning and lots of the smaller retail investors got
Speaker 17: actual one hundred percent of what they requested. So that
Speaker 17: is quite contrary to what Bailey said earlier. Now it
Speaker 17: is true the big portfolio of the retail investors had
Speaker 17: the less they got, which is corresponding to the promise
Speaker 17: that Elon made. He wanted to have loyal small retail
Speaker 17: investors rewarded, and they got rewarded today. Now to the governance,
Speaker 17: I mean, it is clear that SpaceX is what I
Speaker 17: call Elon's imperium. He has rights like some other founder
Speaker 17: led megacaps that are just disproportional. Look at Google, look
Speaker 17: at Meta.
Speaker 13: But the.
Speaker 17: Retail shareholders who the last six years went through helen
Speaker 17: back with court cases, act with activists with whatever, they
Speaker 17: actually welcome this. They want the founder to have the
Speaker 17: power he deserves, especially in Elon's case. So I didn't
Speaker 17: hear any retail investor complaining about the governance in SpaceX.
Speaker 17: Rather the opposite. They would welcome that SpaceX is the
Speaker 17: entity that would absorb to so that the errors that
Speaker 17: were made in twenty ten with Tesla are finally out
Speaker 17: of the system.
Speaker 4: We are up eighteen and a half percent, Alexandra Martz,
Speaker 4: But meanwhile Tesla trad's a little bit lower.
Speaker 3: You're a Tesla.
Speaker 4: Investor, Is that the right trade at the moment, sell
Speaker 4: Tesla buy into SpaceX.
Speaker 17: Well, I did not, as you know, and I do
Speaker 17: believe that actually a lot of the money today will
Speaker 17: pour back into Tesla. The two retail groups overlap a lot.
Speaker 17: I'm sure about eighty percent. So the allocations that were
Speaker 17: not filled, I expect them today or on Monday pouring
Speaker 17: back into Tesla. So I'm not loorried at all.
Speaker 4: Alexandra Martz, Tesla Investor shareholder, LLENF Investor Services CEO in
Speaker 4: Tesla boomer Mama is she's known online.
Speaker 3: We appreciate it.
Speaker 4: We got but a moment with the latest with Jahira
Speaker 4: and and that we're going to be going to in
Speaker 4: a moment where we're going to Christian Garrett of one
Speaker 4: three seven Ventures, he sat with us.
Speaker 3: I mean, how does it feel You've been.
Speaker 4: In this company for over a decade, You've invested round
Speaker 4: off the round. It's now trading seventeen percent higher than
Speaker 4: it's listening, christ.
Speaker 2: It's an exciting moment.
Speaker 8: And I have a lot of friends I know that
Speaker 8: are very excited as well. You have people kind of
Speaker 8: all around the world that have been a part of
Speaker 8: this journey, been a part of this company, from the
Speaker 8: employees to the management team to the investor base.
Speaker 2: Excited for LPs.
Speaker 8: This was my dad's favorite company, so I think that'd
Speaker 8: even more exciting, and so It's awesome to be a
Speaker 8: part of this moment, but quite frankly, I think this
Speaker 8: is very much a okay, let's get back to work
Speaker 8: and get focused because we have another forty years of
Speaker 8: work to do.
Speaker 3: Christian Kahra, what a joy to have you here with us.
Speaker 2: Thank you very much for being here for the aut
Speaker 2: real appreciate car.
Speaker 4: Now we're going to say goodbye to Christian. I'm on
Speaker 4: through some ventures and welcome back in you hire. And
Speaker 4: and who is down in the Nastag? It's trading And
Speaker 4: how is the energy on the floor.
Speaker 7: There is so much energy here at the Nasdag and
Speaker 7: it really started this morning and when we saw crowds
Speaker 7: of fans poparazzi here, some hoping to see Elon Musk,
Speaker 7: but of course he was over in Texas. But yeah,
Speaker 7: the enthusiasm continues. Now that that opening price does value
Speaker 7: the company at just under two trillion dollars, it of
Speaker 7: course instantly puts SpaceX among the most valuable companies, more
Speaker 7: valuable than Meta, even Tesla itself itself, Saudi Aramco. And
Speaker 7: one of the people watching it all unfold here is
Speaker 7: this morning. This morning is naszac CEO A Dina Friedman,
Speaker 7: who has worked very hard pursuing this largest IPO in
Speaker 7: market history, and we are seeing her talk at this moment.
Speaker 7: So after a morning of just shifting indications and intense anticipation,
Speaker 7: it is finally here. The market has finally delivered its
Speaker 7: first verdict on SpaceX.
Speaker 5: Bloombergs Yahara and and working hard on the beat than
Speaker 5: Asdak will see you throughout the day.
Speaker 2: And what a day it is.
Speaker 5: SpaceX the biggest IPO in history, raising seventy five billion
Speaker 5: dollars and right now we're trading around one hundred and
Speaker 5: sixty dollars a share.
Speaker 3: How does it feel?
Speaker 4: And you have been covering this company each step of
Speaker 4: the way, discussing with the investors, the wanna be investors,
Speaker 4: the retail allocations extraordinary, and every single moment Elon Musk
Speaker 4: was breaking the rules.
Speaker 3: The way in which this.
Speaker 2: Ipo highly unusual.
Speaker 5: It was a typical set of price early then do
Speaker 5: a road show for no one really is sure why.
Speaker 5: What I would say is there is a long, long
Speaker 5: way to the future where humans are a multiplanetary species,
Speaker 5: and there is satellites around the Earth that are running
Speaker 5: inference their data centers. But in the near term. Everyone's
Speaker 5: now talking about how good the company is. A data
Speaker 5: center on Earth. Yeah, hyperscaling.
Speaker 3: Yeah, what about what a blinder you keep calling it?
Speaker 2: Yeah, they played a blinder.
Speaker 5: And actually I'm just using the phrase that the people
Speaker 5: gave to me when they phone me up and they say, like,
Speaker 5: this is why we're so convicted. I have such conviction
Speaker 5: on the name. The last thing that will happen as well, well,
Speaker 5: not the last thing. Let's just be honest about this
Speaker 5: biggest IPO in history, raised seventy five billion dollars.
Speaker 2: What happens next? They'll go back to the capital market.
Speaker 3: So I bet you and I can't wait to be
Speaker 3: watching that.
Speaker 4: But right now I have some news because after eighteen
Speaker 4: extraordinary years at Bloomberg, I'm actually pressing pause to have
Speaker 4: a wild and wonderful journey with my family. We're off
Speaker 4: to travel the world for a year, just the four
Speaker 4: of us, just four carry.
Speaker 3: On bags and a whole load of excitement.
Speaker 4: And it is with enormous gratitude that I want to
Speaker 4: thank this Bloomberg team for their support as I step
Speaker 4: away from my daily presenting. Look, the decision has not
Speaker 4: come easily. In fact, I'm pretty terrified to fly away
Speaker 4: from the most exciting news flow, the most fascinating interviews,
Speaker 4: and what I believe to be the most talented team
Speaker 4: in journalism. It feels almost insane, But time keeps ticking,
Speaker 4: the kids keep growing, and so I know this is
Speaker 4: our moment for our adventure of a lifetime. But I
Speaker 4: also know Bloomberg has an extraordinary year ahead. No one
Speaker 4: tells the stories of disruption better than this Bloomberg tech team,
Speaker 4: and I can't wait to cheer on Bloomberg TV, Bloomberg News,
Speaker 4: and Bloomberg Originals as they continue breaking stories, landing interviews,
Speaker 4: winning awards. And it takes a village to bring news
Speaker 4: to wire, to television, to air events, to stage documentaries
Speaker 4: to life.
Speaker 3: In fact, it takes three thousand.
Speaker 4: Of us Bloomberg journalists and one hundred countries around the world.
Speaker 4: As we like to remind you, but I've lost count
Speaker 4: of how many people have trained me, mentored me, challenged me,
Speaker 4: collaborated with me, floor managed me, filmed me, and yes,
Speaker 4: beautified me along the way. And to everyone I've been
Speaker 4: lucky enough to learn from outside of Bloomberg, every spokesperson,
Speaker 4: every executive, every event organizer, every audience member, Yes you
Speaker 4: watching this.
Speaker 3: Thank you you make this an absolute blast.
Speaker 4: And a special thanks goes to the co anka I
Speaker 4: stand to sit next to you now ed the production
Speaker 4: team I hear guiding me in the control room, and
Speaker 4: the floor managers and the camera operators stood in front
Speaker 4: of me at this second. You're the best crew I
Speaker 4: could ever have hoped for, and I will miss you
Speaker 4: more than you could ever know. But it's time to
Speaker 4: swap studios for suitcases. With that, maybe it does it
Speaker 4: for this edition of Bloomberg Tech.
Speaker 5: Ed Ludley, fifteen years to the day you and I
Speaker 5: met in London. You were the first person I met
Speaker 5: at Bloomberg and you made my career recap that show
Speaker 5: recap Caroline on the pod your where to find it
Speaker 5: from New York.
Speaker 2: City, the biggest ipo in history. This is Bloomberg Tech