1 00:00:02,720 --> 00:00:10,559 Speaker 1: Bloomberg Audio Studios, podcasts, radio news. You're listening to the 2 00:00:10,600 --> 00:00:14,560 Speaker 1: Bloomberg Intelligence Podcast. Catch us live weekdays at ten am 3 00:00:14,600 --> 00:00:17,880 Speaker 1: Eastern on Apple Coarclay, and Android Auto with the Bloomberg 4 00:00:17,920 --> 00:00:21,040 Speaker 1: Business App. Listen on demand wherever you get your podcasts, 5 00:00:21,360 --> 00:00:23,080 Speaker 1: or watch us live on YouTube. 6 00:00:24,079 --> 00:00:27,040 Speaker 2: I've got this seeing trading. It's now trading. It priced 7 00:00:27,040 --> 00:00:30,480 Speaker 2: at thirty five, opened at fifty here at one fifty six. 8 00:00:31,160 --> 00:00:33,640 Speaker 2: Anthony Hughes, Bloomberg US Equity Capital Markets Reporter. 9 00:00:33,720 --> 00:00:36,960 Speaker 3: What do you think you're Anthony, Well, I think you know, 10 00:00:36,960 --> 00:00:40,559 Speaker 3: eleven percent game on the first trade is probably a 11 00:00:40,640 --> 00:00:44,319 Speaker 3: number that would for most IPOs would be considered, you know, 12 00:00:44,760 --> 00:00:46,920 Speaker 3: what you would hope to achieve. But you know, in 13 00:00:46,960 --> 00:00:49,560 Speaker 3: the sense that this IPO, there's a lot of hype 14 00:00:49,560 --> 00:00:54,400 Speaker 3: and enthusiasm and a lot of people involved in this deal. 15 00:00:54,440 --> 00:00:57,040 Speaker 3: I think maybe people hoping for a bigger number. 16 00:00:57,400 --> 00:00:59,760 Speaker 4: I really like the fact that you started there because 17 00:01:00,160 --> 00:01:03,400 Speaker 4: the headlines were crossing as of the first thirty minutes 18 00:01:03,440 --> 00:01:06,200 Speaker 4: of trade, and the initial headline was that it was 19 00:01:06,240 --> 00:01:09,040 Speaker 4: indicated to open at one hundred and seventy five dollars 20 00:01:09,280 --> 00:01:11,800 Speaker 4: a piece, and it's been steadily going down we've gotten 21 00:01:11,800 --> 00:01:14,320 Speaker 4: headlines about you know, oh, now it's one seventy four, 22 00:01:14,319 --> 00:01:16,119 Speaker 4: and now it's one seventy two, Now it's one seventy 23 00:01:16,160 --> 00:01:18,000 Speaker 4: all the way down to one hundred and fifty. Is 24 00:01:18,040 --> 00:01:19,480 Speaker 4: that about sign Yeah? 25 00:01:19,520 --> 00:01:22,240 Speaker 3: Well, just to understand the process a bit better. I mean, 26 00:01:22,920 --> 00:01:25,600 Speaker 3: Morgan Stanley's a stabilization agent for the IPL and they 27 00:01:25,600 --> 00:01:28,959 Speaker 3: also have the role of opening the IPO. But basically 28 00:01:29,000 --> 00:01:32,120 Speaker 3: that process involves bringing together all these buyers and sellers 29 00:01:32,200 --> 00:01:34,360 Speaker 3: for this opening print, and you want to make sure 30 00:01:34,400 --> 00:01:38,080 Speaker 3: that the opening print is sort of ideally as fair 31 00:01:38,400 --> 00:01:40,960 Speaker 3: a price as you can get. And generally speaking from 32 00:01:41,000 --> 00:01:44,240 Speaker 3: what I'm told, that banks like to have about ten 33 00:01:44,280 --> 00:01:47,560 Speaker 3: percent of the deal size traded in that opening print. 34 00:01:47,640 --> 00:01:49,720 Speaker 3: So I think you can see the number there was 35 00:01:49,760 --> 00:01:52,520 Speaker 3: around sixty million shares and you know the IPO was 36 00:01:52,560 --> 00:01:54,440 Speaker 3: five hundred. You know, about ten percent of the stock 37 00:01:54,480 --> 00:01:56,960 Speaker 3: basically went through in the opening print. That's about standard, right, 38 00:01:57,280 --> 00:02:00,720 Speaker 3: But that allows the banks to be sort of confident. 39 00:02:00,760 --> 00:02:03,200 Speaker 3: I guess that you know, taking the buyers and the 40 00:02:03,240 --> 00:02:05,760 Speaker 3: sellers together, the price that you're opening the stock at 41 00:02:05,840 --> 00:02:08,200 Speaker 3: is is you know, the price that the market wants 42 00:02:08,200 --> 00:02:10,480 Speaker 3: to pay, and then you know looking at the success 43 00:02:10,520 --> 00:02:13,320 Speaker 3: of this first day trading. One measure of it will 44 00:02:13,320 --> 00:02:15,120 Speaker 3: be like where the stock closed, and you want the 45 00:02:15,160 --> 00:02:18,680 Speaker 3: stock to close near to or ideally above where it opens. 46 00:02:18,720 --> 00:02:20,040 Speaker 3: You don't want it to like you want to open 47 00:02:20,040 --> 00:02:23,000 Speaker 3: the stock really high and then it ended the day lower, 48 00:02:23,040 --> 00:02:24,400 Speaker 3: because that meant that would mean that a lot of 49 00:02:24,400 --> 00:02:26,800 Speaker 3: people lost money. So you know, that's the art of 50 00:02:27,000 --> 00:02:29,320 Speaker 3: opening an IPA. But this is just all one day's trading, 51 00:02:29,320 --> 00:02:30,760 Speaker 3: and it's many days ahead. 52 00:02:30,960 --> 00:02:33,720 Speaker 2: Yeah, exactly right. We've got close to one hundred million 53 00:02:33,760 --> 00:02:36,200 Speaker 2: shares trading hands here again, about one hundred and fifty 54 00:02:36,240 --> 00:02:38,720 Speaker 2: nine dollars one hundred and sixty dollars to share open 55 00:02:38,760 --> 00:02:41,480 Speaker 2: at one fifty after pressing it one thirty five here. 56 00:02:42,720 --> 00:02:47,880 Speaker 2: How long typically will we see I guess higher than 57 00:02:47,960 --> 00:02:50,679 Speaker 2: usual volume when a company goes public. Is it that 58 00:02:50,760 --> 00:02:53,240 Speaker 2: I'll get kind of exercised the first day? It does 59 00:02:53,280 --> 00:02:54,320 Speaker 2: a last a few days. 60 00:02:54,520 --> 00:02:54,760 Speaker 5: I think. 61 00:02:55,200 --> 00:02:57,160 Speaker 3: I think from my experience, the first day will be 62 00:02:57,360 --> 00:03:00,000 Speaker 3: the heaviest day for a while. I mean the first 63 00:03:00,160 --> 00:03:04,000 Speaker 3: days will also be relatively heavy. I mean SpaceX. You know, 64 00:03:04,200 --> 00:03:06,520 Speaker 3: the interesting thing with IPOs is that, you know, the 65 00:03:06,639 --> 00:03:10,000 Speaker 3: art of executing IPOs is to try and place the 66 00:03:10,040 --> 00:03:12,800 Speaker 3: stock with as many long term investors as you can 67 00:03:12,840 --> 00:03:15,400 Speaker 3: and investors that won't sell. But there's always a portion 68 00:03:15,440 --> 00:03:16,760 Speaker 3: of the stock you want to get to people who 69 00:03:16,760 --> 00:03:19,320 Speaker 3: are traders because obviously we want stock, some stock to 70 00:03:19,360 --> 00:03:20,720 Speaker 3: be in the market for people to buy and sell 71 00:03:20,760 --> 00:03:23,240 Speaker 3: and not to sort of overly exaggerate the price if 72 00:03:23,240 --> 00:03:26,400 Speaker 3: there's a real supply and demand imbalance. But you know, 73 00:03:26,480 --> 00:03:30,040 Speaker 3: I think they from the institutional book, they allocated like 74 00:03:30,120 --> 00:03:32,320 Speaker 3: seventy I think was seventy percent of the deal to 75 00:03:32,639 --> 00:03:35,120 Speaker 3: what they call long only investors or you know, people 76 00:03:35,120 --> 00:03:37,520 Speaker 3: who are people are not traders, and but you are 77 00:03:37,520 --> 00:03:38,760 Speaker 3: going to have an element of the you know, as 78 00:03:38,760 --> 00:03:40,480 Speaker 3: you know from your experience, you're going to have an 79 00:03:40,520 --> 00:03:41,960 Speaker 3: element of the book that's got to be going to 80 00:03:42,000 --> 00:03:45,840 Speaker 3: people who are a bit more short short term. But yeah, 81 00:03:46,120 --> 00:03:48,600 Speaker 3: the first first first day will probably be the biggest 82 00:03:48,680 --> 00:03:50,920 Speaker 3: day of trading. I mean may be different from SpaceX, 83 00:03:50,960 --> 00:03:53,960 Speaker 3: but yeah, I mean when you go and see SpaceX 84 00:03:54,000 --> 00:03:56,840 Speaker 3: do another maybe they'll do another stock sale in the 85 00:03:56,840 --> 00:04:00,600 Speaker 3: future or some sort of corporate event. Might it might 86 00:04:00,640 --> 00:04:02,520 Speaker 3: be a die when it's high, but this could be 87 00:04:02,520 --> 00:04:04,440 Speaker 3: you know, it could be the highest I'm training for 88 00:04:04,480 --> 00:04:04,840 Speaker 3: the stock. 89 00:04:05,240 --> 00:04:08,320 Speaker 2: It's interesting. I'm just looking at the rich go function 90 00:04:08,360 --> 00:04:14,760 Speaker 2: on the Bloomberg terminal had Elon's steak in SpaceX valued 91 00:04:14,760 --> 00:04:16,599 Speaker 2: at one hundred and thirty five dollars to share, which 92 00:04:16,600 --> 00:04:20,559 Speaker 2: placed him, again farther away, the number one richest person 93 00:04:20,600 --> 00:04:22,559 Speaker 2: on the planet, with a net worth of nine hundred 94 00:04:22,560 --> 00:04:25,560 Speaker 2: and seventy billion dollars. Now with the rise and the price, 95 00:04:25,600 --> 00:04:28,520 Speaker 2: he's well over a trillionaire. So there you go. That's 96 00:04:28,640 --> 00:04:32,559 Speaker 2: also kind of an interesting event, therey in the world's history. 97 00:04:32,640 --> 00:04:35,000 Speaker 2: I guess on paper, of course, on paper, of course, 98 00:04:35,040 --> 00:04:37,719 Speaker 2: exactly right. This has to be I'm gonna call, let's 99 00:04:37,720 --> 00:04:39,760 Speaker 2: just say, if we kind of trade like this today, 100 00:04:40,080 --> 00:04:43,000 Speaker 2: you know, you call this a successful IPO and a 101 00:04:43,080 --> 00:04:48,720 Speaker 2: successful historic IPO. For many reasons, not just least which 102 00:04:48,760 --> 00:04:52,160 Speaker 2: is the dollars involved. That bodes well. I would think 103 00:04:52,279 --> 00:04:54,800 Speaker 2: for the anthropics of the world, the open eyes of 104 00:04:54,839 --> 00:04:58,560 Speaker 2: the world, which have also filed registration statements to go public, 105 00:04:58,800 --> 00:04:59,320 Speaker 2: this has got to. 106 00:04:59,320 --> 00:05:01,159 Speaker 3: Be a good sign. Well, I think we'll see how 107 00:05:01,200 --> 00:05:03,159 Speaker 3: the stock trace to day. I mean to be honest, 108 00:05:03,240 --> 00:05:05,840 Speaker 3: coming out eleven percent out of the gate, you probably 109 00:05:05,880 --> 00:05:07,680 Speaker 3: might be a little worried that it could drift back 110 00:05:07,680 --> 00:05:11,200 Speaker 3: and maybe end not as well. But you know, I 111 00:05:11,200 --> 00:05:13,200 Speaker 3: think the banks have put a lot of work into this, 112 00:05:13,279 --> 00:05:16,040 Speaker 3: so you know, maybe maybe they know that they can 113 00:05:16,040 --> 00:05:18,320 Speaker 3: get it to finish around where it's where it's opened here, 114 00:05:18,360 --> 00:05:20,479 Speaker 3: or maybe there's more enthusiasm from the rest of the day. 115 00:05:20,520 --> 00:05:23,479 Speaker 3: But yeah, I think it shows you that seventy five 116 00:05:23,480 --> 00:05:25,919 Speaker 3: billion is I mean, we we've reported this is a 117 00:05:25,960 --> 00:05:28,200 Speaker 3: huge number. It's a record deal. But you know, I 118 00:05:28,200 --> 00:05:31,239 Speaker 3: think even the senior person there at Gold and Sacks 119 00:05:31,279 --> 00:05:33,440 Speaker 3: today I saw the note And something I've been thinking 120 00:05:33,480 --> 00:05:35,200 Speaker 3: a lot about is that, you know, the numbers we 121 00:05:35,200 --> 00:05:37,240 Speaker 3: talk about these days are so much larger than even 122 00:05:37,440 --> 00:05:39,839 Speaker 3: even a few years ago. We talk about trillions just 123 00:05:39,920 --> 00:05:42,680 Speaker 3: left hand, and you know, the amount of volume you 124 00:05:42,680 --> 00:05:45,800 Speaker 3: see in the IPO market we're talking you know, I 125 00:05:45,839 --> 00:05:48,080 Speaker 3: think I think the I think we're thinking globally maybe 126 00:05:48,080 --> 00:05:50,320 Speaker 3: three hundred billion, you know, someday that if all these 127 00:05:50,360 --> 00:05:52,880 Speaker 3: deals happen and and like that's that's a lot of 128 00:05:52,920 --> 00:05:55,520 Speaker 3: money to raise. And their market cap is obviously much 129 00:05:55,560 --> 00:05:57,840 Speaker 3: bigger than the trillions, but the amount of money that 130 00:05:57,839 --> 00:05:59,960 Speaker 3: they're sucking out of the market is is a relative 131 00:06:00,240 --> 00:06:03,279 Speaker 3: small amount of you know, well, well below one percent. 132 00:06:03,320 --> 00:06:04,839 Speaker 3: You know, it's like, I think the number was something 133 00:06:04,880 --> 00:06:07,359 Speaker 3: like twenty bases puts or something. It's not it's not 134 00:06:07,400 --> 00:06:08,799 Speaker 3: that much money these days. 135 00:06:09,160 --> 00:06:09,720 Speaker 1: What do we know. 136 00:06:09,680 --> 00:06:12,960 Speaker 2: About the lockup period here? Typically an ipel lockup is 137 00:06:13,000 --> 00:06:15,960 Speaker 2: one hundred and eighty days six months before the insiders 138 00:06:16,040 --> 00:06:18,240 Speaker 2: can sell their shares. What do we know about this transaction? 139 00:06:18,320 --> 00:06:19,800 Speaker 3: Yes, it's a bit of a long answer to that question. 140 00:06:20,160 --> 00:06:22,960 Speaker 3: It is a non traditional lock up. Normally you have 141 00:06:23,000 --> 00:06:24,680 Speaker 3: a six month lock up and everyone comes out and 142 00:06:24,680 --> 00:06:26,960 Speaker 3: can trade it six months and the stop falls as 143 00:06:27,000 --> 00:06:29,880 Speaker 3: a result. But here, you know, yeah, I've got to 144 00:06:29,880 --> 00:06:32,480 Speaker 3: take account this is twenty four year old, twenty four 145 00:06:32,560 --> 00:06:36,120 Speaker 3: year old company, so you know, it's not like it's 146 00:06:35,480 --> 00:06:38,520 Speaker 3: it's not like it had already had a very fairly 147 00:06:39,200 --> 00:06:42,520 Speaker 3: developed shareholder base. So you know, there's a logical argument 148 00:06:42,600 --> 00:06:45,000 Speaker 3: that you can maybe not have the standard lock up, 149 00:06:45,080 --> 00:06:50,800 Speaker 3: but they still have, you know, put some some standards 150 00:06:50,800 --> 00:06:53,120 Speaker 3: around it by making sure that the company's going to 151 00:06:53,120 --> 00:06:55,039 Speaker 3: have to report its first set of earnings before people 152 00:06:55,040 --> 00:06:56,960 Speaker 3: get to start to get out. But even then they'll 153 00:06:57,040 --> 00:06:58,680 Speaker 3: there'll be a small proportion of the people who will 154 00:06:58,680 --> 00:07:01,240 Speaker 3: be able to sell and then a little bit later 155 00:07:01,279 --> 00:07:03,279 Speaker 3: a bit more. But and the whole lock up sort 156 00:07:03,279 --> 00:07:05,320 Speaker 3: of basically comes off over a one year period, and 157 00:07:05,760 --> 00:07:08,880 Speaker 3: Elon Musk himself is locked up for a year or so, 158 00:07:09,080 --> 00:07:11,360 Speaker 3: and he probably wouldn't be selling, I don't think in 159 00:07:11,440 --> 00:07:15,320 Speaker 3: any substantial size in any case. But you know, there's 160 00:07:15,680 --> 00:07:17,280 Speaker 3: the point, is I guess that he's got he's got 161 00:07:17,280 --> 00:07:19,560 Speaker 3: a lot of pre IPO investors alongside him there, and 162 00:07:19,560 --> 00:07:22,400 Speaker 3: there are some there are definitely some of those investors 163 00:07:22,440 --> 00:07:25,920 Speaker 3: who who aren't investing in the IPO and do want 164 00:07:25,920 --> 00:07:27,760 Speaker 3: to get out because they only invest in private companies, 165 00:07:27,800 --> 00:07:30,200 Speaker 3: and other investors who are continuing. So that you know, 166 00:07:30,200 --> 00:07:32,520 Speaker 3: there's all different types of investors involved in an IPO 167 00:07:32,640 --> 00:07:34,880 Speaker 3: like this, and some of them are going to want 168 00:07:34,880 --> 00:07:36,360 Speaker 3: to sell and some of them are going to hang on, 169 00:07:36,440 --> 00:07:37,440 Speaker 3: and it's just going to be a bit of a 170 00:07:37,440 --> 00:07:41,000 Speaker 3: different bit different. But the lock up structure is quite complex, 171 00:07:41,280 --> 00:07:43,920 Speaker 3: stretches over a year. There are multiple multiple I think 172 00:07:43,960 --> 00:07:46,920 Speaker 3: it's eight to ten, might even be more periods when 173 00:07:47,080 --> 00:07:49,000 Speaker 3: a little bit of stock comes out like seven percent here, 174 00:07:49,040 --> 00:07:51,440 Speaker 3: eight percent here, and you know it's very it's all 175 00:07:51,480 --> 00:07:55,600 Speaker 3: outlined in the prospectives, but it's quite it's quite lengthy 176 00:07:55,640 --> 00:07:56,400 Speaker 3: and well considered. 177 00:07:56,640 --> 00:08:00,600 Speaker 2: So how about the retail coupon it? Yeah, do we 178 00:08:00,640 --> 00:08:02,560 Speaker 2: know generally how much kind of went to the retail. 179 00:08:02,840 --> 00:08:04,160 Speaker 3: Yeah, so I think if we look at the IPI 180 00:08:04,400 --> 00:08:06,680 Speaker 3: was like seventy five plus the green shoe, which will 181 00:08:06,680 --> 00:08:09,960 Speaker 3: be exercised because the stocks traded up will likely be exercised. 182 00:08:10,280 --> 00:08:12,560 Speaker 3: I think our understanding was that twenty percent of the 183 00:08:13,080 --> 00:08:15,800 Speaker 3: deal went to retail, so that would be a little 184 00:08:15,800 --> 00:08:18,400 Speaker 3: bit less than twenty billion dollars. The demand was more 185 00:08:18,400 --> 00:08:20,800 Speaker 3: than one hundred billion, and you have to you know, 186 00:08:20,840 --> 00:08:23,440 Speaker 3: when you talk about retail, after there's different types of retail. 187 00:08:23,440 --> 00:08:26,120 Speaker 3: There's the rich, rich, high network customers of the banks, 188 00:08:26,120 --> 00:08:28,120 Speaker 3: and then there's the robin Hood. There's you know, there's 189 00:08:28,160 --> 00:08:30,960 Speaker 3: the whole spectrum. There's the robin Hood customers. I mean, 190 00:08:30,960 --> 00:08:33,160 Speaker 3: if you talk about the robin Hood customers from all 191 00:08:33,200 --> 00:08:36,680 Speaker 3: the what people have said this morning, it sounds like 192 00:08:37,640 --> 00:08:40,679 Speaker 3: all hundreds of thousands of robin Hood customers got at 193 00:08:40,760 --> 00:08:43,320 Speaker 3: least a share, and that was the case probably with 194 00:08:43,360 --> 00:08:45,199 Speaker 3: some of the other digital platforms as well. But a 195 00:08:45,200 --> 00:08:46,720 Speaker 3: lot of people are disappointed because they only got one 196 00:08:46,760 --> 00:08:48,840 Speaker 3: share but maybe now they look at and see ten 197 00:08:48,880 --> 00:08:50,960 Speaker 3: percent gain, maybe they're not so disappointed. I don't they 198 00:08:51,080 --> 00:08:51,920 Speaker 3: looking at just taed. 199 00:08:51,960 --> 00:08:56,720 Speaker 2: Tesla stock's down two percent here today, down thirteen percent 200 00:08:56,920 --> 00:08:59,480 Speaker 2: for the year, up twenty two percent for a trailing 201 00:08:59,520 --> 00:09:02,480 Speaker 2: twelve months. You're and of course one of the storylines 202 00:09:02,520 --> 00:09:05,600 Speaker 2: out there, Anthony, is that Elion's just for for no 203 00:09:05,679 --> 00:09:09,320 Speaker 2: other reason, just for keeping everything neat and tidy, just 204 00:09:09,400 --> 00:09:13,559 Speaker 2: kind of have SpaceX acquire a roll up into SpaceX. 205 00:09:14,040 --> 00:09:16,040 Speaker 2: I know that was discussed out there in the marketplace. 206 00:09:16,080 --> 00:09:19,240 Speaker 2: Do we expect they're hearing anything from the company on that, Well, 207 00:09:19,240 --> 00:09:19,840 Speaker 2: it's unclear. 208 00:09:19,880 --> 00:09:22,280 Speaker 3: I think that something that people are expecting to happen, 209 00:09:22,440 --> 00:09:25,040 Speaker 3: it might have some industrial logic, I think, particularly because 210 00:09:25,080 --> 00:09:28,440 Speaker 3: there's different things that pretty you know, big ambitions that 211 00:09:28,480 --> 00:09:31,120 Speaker 3: Tesla has around robotics, which makes might make more sense 212 00:09:31,160 --> 00:09:33,520 Speaker 3: in a in a in a business like SpaceX, with 213 00:09:33,559 --> 00:09:36,120 Speaker 3: a business like SpaceX where there's so many of these big, big, 214 00:09:36,160 --> 00:09:39,160 Speaker 3: big projects and ambitions that they're trying to pursue, and 215 00:09:39,480 --> 00:09:41,800 Speaker 3: you know, maybe robotics in space together makes a lot 216 00:09:41,840 --> 00:09:44,520 Speaker 3: of sense. And you know, but but I think we 217 00:09:44,640 --> 00:09:47,440 Speaker 3: might be a while before we hear about that. I mean, 218 00:09:47,480 --> 00:09:50,480 Speaker 3: I think people do expect that to happen, but it's 219 00:09:50,800 --> 00:09:54,960 Speaker 3: you know, it has to make sense for you know, 220 00:09:55,000 --> 00:09:57,840 Speaker 3: based on you know, how these you know, how these 221 00:09:57,840 --> 00:10:00,600 Speaker 3: stocks are trading whatever. But I think the main argument 222 00:10:00,679 --> 00:10:03,680 Speaker 3: perhaps for that happening from I guess more I could 223 00:10:03,679 --> 00:10:06,040 Speaker 3: say from a more cynical perspective, is that it would 224 00:10:06,080 --> 00:10:11,200 Speaker 3: allow Elon musk to you know, to potentially take control 225 00:10:10,080 --> 00:10:15,559 Speaker 3: of this bigger entity, because Tesla doesn't have the dual 226 00:10:15,600 --> 00:10:18,640 Speaker 3: class structure and SpaceX does. But you know, I think 227 00:10:19,360 --> 00:10:21,160 Speaker 3: idea like that would take a while. I think the 228 00:10:21,200 --> 00:10:24,440 Speaker 3: other extraordinary thing about SpaceX, though, is that we've really 229 00:10:24,480 --> 00:10:27,160 Speaker 3: seen that Elon must get stuff done quickly and quicker 230 00:10:27,200 --> 00:10:30,560 Speaker 3: than everyone else. I mean, even the pressure releases, the filings, 231 00:10:30,720 --> 00:10:36,160 Speaker 3: the road show, the way the S one was drafted 232 00:10:36,200 --> 00:10:39,120 Speaker 3: and filed, everything happened a lot quicker than the average company, 233 00:10:39,160 --> 00:10:39,800 Speaker 3: that's for sure. 234 00:10:40,200 --> 00:10:43,120 Speaker 4: Stay with us more from Bloomberg Intelligence coming up after this. 235 00:10:46,920 --> 00:10:50,600 Speaker 1: You're listening to the Bloomberg Intelligence podcast. Catch us live 236 00:10:50,679 --> 00:10:53,800 Speaker 1: weekdays at ten am Eastern on Apple, Coarcley, and Android 237 00:10:53,800 --> 00:10:57,120 Speaker 1: Otto with the Bloomberg Business app. Listen on demand wherever 238 00:10:57,160 --> 00:10:59,839 Speaker 1: you get your podcasts or watch us live on you. 239 00:11:01,480 --> 00:11:03,840 Speaker 2: Let's go to George Ferguson here. He's been tasked to 240 00:11:03,880 --> 00:11:07,600 Speaker 2: lead the research efforts here, involving lots of the analysts 241 00:11:07,600 --> 00:11:10,679 Speaker 2: at Bloomberg Intelligence. Because this is a technology play, it's 242 00:11:10,679 --> 00:11:14,079 Speaker 2: an AI play, it's a rocket ship play. You gotta 243 00:11:14,120 --> 00:11:19,280 Speaker 2: have some experts. Unfortunately, Bloomberg does for all of those businesses. George, 244 00:11:19,320 --> 00:11:22,560 Speaker 2: what do you think the buyer of a SpaceX what 245 00:11:22,559 --> 00:11:25,559 Speaker 2: do you think the buyer of a SpaceX share? What 246 00:11:25,640 --> 00:11:28,160 Speaker 2: is he or she thinking here when they place that order? 247 00:11:29,679 --> 00:11:32,079 Speaker 5: Yeah, I mean, I honestly think most of them are 248 00:11:32,520 --> 00:11:36,160 Speaker 5: believers in Elon Musk, believers in his vision of the 249 00:11:36,200 --> 00:11:38,960 Speaker 5: future and his ability to get things done. Because I 250 00:11:38,960 --> 00:11:41,000 Speaker 5: think you've got to be a big believer to buy 251 00:11:41,000 --> 00:11:44,600 Speaker 5: in it at these valuations. So that's why that's where 252 00:11:44,640 --> 00:11:46,280 Speaker 5: I think. That's why I think you saw so much 253 00:11:47,320 --> 00:11:51,599 Speaker 5: of the IPO get shunted into the retail side of 254 00:11:51,640 --> 00:11:54,160 Speaker 5: the world, and because I think that's where you see 255 00:11:54,559 --> 00:11:56,920 Speaker 5: a lot of support and buy into that vision. 256 00:11:57,679 --> 00:11:59,840 Speaker 4: It feels like the SpaceX IPO is a real beast. 257 00:12:00,120 --> 00:12:02,760 Speaker 4: You look at this perlative surrounding it. It's the biggest 258 00:12:02,760 --> 00:12:05,160 Speaker 4: IPO ever, it'll be the first company to move people 259 00:12:05,200 --> 00:12:08,280 Speaker 4: to Mars, that it's going to mint that world's first trillionaire. 260 00:12:08,320 --> 00:12:10,160 Speaker 4: I almost said billionaire and I had to correct myself. Now 261 00:12:10,200 --> 00:12:12,360 Speaker 4: we have that, And this is kind of the point, 262 00:12:12,440 --> 00:12:14,760 Speaker 4: right George. I mean, this is the Elon Musk formula. 263 00:12:15,000 --> 00:12:18,080 Speaker 4: Create an entirely new category and then you know, claim 264 00:12:18,160 --> 00:12:21,080 Speaker 4: leadership and set the standard and you know, make everyone 265 00:12:21,160 --> 00:12:25,240 Speaker 4: follow in your footsteps. If that's the case, how does 266 00:12:25,280 --> 00:12:28,240 Speaker 4: someone analyze a company like this, because whatever you do, 267 00:12:28,880 --> 00:12:30,520 Speaker 4: he's going to come back with, well, it's never been 268 00:12:30,520 --> 00:12:32,760 Speaker 4: done before, so you can't you know, compare to anything. 269 00:12:33,840 --> 00:12:35,679 Speaker 5: Yeah, I mean that's why it's extremely hard. But I 270 00:12:35,720 --> 00:12:37,480 Speaker 5: think when you know, when you look at it, I 271 00:12:37,480 --> 00:12:41,880 Speaker 5: think we do understand pretty well the launch business as 272 00:12:41,960 --> 00:12:48,240 Speaker 5: it stands today. We understand the connectivity business, the satellite 273 00:12:48,240 --> 00:12:52,240 Speaker 5: business pretty well. And I think the big variable here 274 00:12:52,320 --> 00:12:55,240 Speaker 5: again is that is that AI business, and it's it's 275 00:12:55,280 --> 00:12:57,520 Speaker 5: a variable out there for a number of other companies. 276 00:12:57,559 --> 00:13:00,560 Speaker 5: But look, I think launch we saw, like you know, 277 00:13:00,600 --> 00:13:05,200 Speaker 5: some seventy six percent of the launches were primarily for Starlink. 278 00:13:05,600 --> 00:13:07,760 Speaker 5: So when we think about the demand for launch in 279 00:13:07,800 --> 00:13:11,040 Speaker 5: the future, Look, I think there'll be more constellations that 280 00:13:11,120 --> 00:13:13,680 Speaker 5: go up, but I don't think there's going to be 281 00:13:13,679 --> 00:13:16,880 Speaker 5: more than five or six LEO constellations in the next 282 00:13:16,880 --> 00:13:19,040 Speaker 5: couple decades. And they're the ones that use a lot 283 00:13:19,520 --> 00:13:22,280 Speaker 5: of satellites. You know, that's sort of ten thousand plus 284 00:13:22,720 --> 00:13:25,560 Speaker 5: kind of constellations. And I think of those five or six, 285 00:13:25,600 --> 00:13:28,080 Speaker 5: I think you're going to see two US. They're kind 286 00:13:28,080 --> 00:13:31,920 Speaker 5: of you know, Starlink, and they're probably Amazon Leo. I 287 00:13:31,920 --> 00:13:33,920 Speaker 5: think Europe might want one of their own. I'm sure 288 00:13:33,920 --> 00:13:36,480 Speaker 5: the Chinese want a couple of their own. Maybe India 289 00:13:36,520 --> 00:13:39,120 Speaker 5: gets in this game. I don't think anybody else's constellation 290 00:13:39,240 --> 00:13:43,040 Speaker 5: is going to get launched on SpaceX launches, right, so 291 00:13:43,080 --> 00:13:45,920 Speaker 5: I think it's going to be even I think Amazon 292 00:13:46,000 --> 00:13:48,880 Speaker 5: Leo is going to be launched largely on Blue Origin 293 00:13:48,960 --> 00:13:52,160 Speaker 5: rockets as they get that going. So I think we're 294 00:13:52,200 --> 00:13:54,880 Speaker 5: kind of looking at space kind of a flatish, maybe 295 00:13:54,920 --> 00:13:58,120 Speaker 5: a slow growth kind of business as they do government 296 00:13:58,160 --> 00:14:01,080 Speaker 5: work and things like that. The connectivity business, you know, 297 00:14:01,120 --> 00:14:05,600 Speaker 5: that's all about that's you know, that's data, broadband data, 298 00:14:05,720 --> 00:14:10,240 Speaker 5: that's direct to sell communications. We kind of understand that too. 299 00:14:10,240 --> 00:14:14,120 Speaker 5: We have terrestrial providers if you're in a big population center. 300 00:14:14,480 --> 00:14:16,680 Speaker 5: They're going to do it better than SpaceX is going 301 00:14:16,760 --> 00:14:19,640 Speaker 5: to do given latency of going to a satellite, problems 302 00:14:19,640 --> 00:14:22,360 Speaker 5: of being in buildings. But they're very important areas of 303 00:14:22,360 --> 00:14:25,720 Speaker 5: the world that need that connectivity to a satellite to 304 00:14:25,800 --> 00:14:29,359 Speaker 5: stay on the you know, on the web and connected, 305 00:14:30,000 --> 00:14:32,000 Speaker 5: and that will get better over time. But I think 306 00:14:32,040 --> 00:14:35,280 Speaker 5: that's you know, maybe it's a what we're seeing sort 307 00:14:35,320 --> 00:14:38,280 Speaker 5: of twenties ish percent growth in the last couple of years, 308 00:14:38,320 --> 00:14:40,800 Speaker 5: but some of the metrics are coming down. On the 309 00:14:40,800 --> 00:14:46,440 Speaker 5: amount each subscriber spends, it's decently profitable, it's not wildly profitable. 310 00:14:46,840 --> 00:14:51,400 Speaker 5: So to me, everything shifts to AI, right, it's a 311 00:14:51,440 --> 00:14:54,880 Speaker 5: big bet on data centers, putting them into the sky, 312 00:14:55,000 --> 00:14:58,920 Speaker 5: putting them into orbit. It could where you probably be 313 00:14:58,920 --> 00:15:02,440 Speaker 5: able to do it cheaper, cool at, cheaper powered, easier, 314 00:15:03,440 --> 00:15:06,320 Speaker 5: and then you know, we'll stream data up to satellites 315 00:15:06,360 --> 00:15:08,160 Speaker 5: and GROC will help us figure out what to do 316 00:15:08,240 --> 00:15:11,280 Speaker 5: in the future. And that's kind of to me, the 317 00:15:11,320 --> 00:15:12,160 Speaker 5: big big vision. 318 00:15:12,440 --> 00:15:14,400 Speaker 2: Yeah, I'm looking at just kind of where the revenue 319 00:15:14,480 --> 00:15:16,680 Speaker 2: comes from. George just on a trailing twelve month basis, 320 00:15:16,720 --> 00:15:20,280 Speaker 2: you know, round numbers eleven billion from the connectivity business, 321 00:15:20,600 --> 00:15:23,080 Speaker 2: four billion from the space business, and then at the 322 00:15:23,080 --> 00:15:25,680 Speaker 2: bottoms AI at three billion of revenue. But when you 323 00:15:25,680 --> 00:15:28,360 Speaker 2: think about a company that's going to be valued at 324 00:15:28,480 --> 00:15:31,840 Speaker 2: at least ninety five times revenue, it seems like the 325 00:15:31,880 --> 00:15:34,560 Speaker 2: buyer today is saying, I'm putting my money on this 326 00:15:34,640 --> 00:15:36,680 Speaker 2: AI thing because I think that's going to be something 327 00:15:36,760 --> 00:15:40,720 Speaker 2: just astronomical. I guess it's the AI play that kind 328 00:15:40,720 --> 00:15:42,640 Speaker 2: of gets you to where you need to go for 329 00:15:42,680 --> 00:15:43,880 Speaker 2: if you're a long term investor. 330 00:15:44,720 --> 00:15:47,000 Speaker 5: Yeah, I think if you look, you know, if you 331 00:15:47,000 --> 00:15:49,680 Speaker 5: look at some of the recent deals cut with Anthropic, right, 332 00:15:49,760 --> 00:15:53,200 Speaker 5: so what that's a billion and a quarter a month. 333 00:15:54,400 --> 00:15:56,480 Speaker 5: You know, I guess as long as they keep signing 334 00:15:56,480 --> 00:16:00,000 Speaker 5: that agreement, you're going to see that AI revenue jump 335 00:16:00,080 --> 00:16:03,640 Speaker 5: up pretty dramatically here over the over the next year 336 00:16:04,240 --> 00:16:06,520 Speaker 5: and years. Right. So, I think when we look at 337 00:16:06,520 --> 00:16:07,720 Speaker 5: sort of what we think is going to be at 338 00:16:07,800 --> 00:16:10,120 Speaker 5: the end of twenty twenty six, we think it's going 339 00:16:10,200 --> 00:16:13,880 Speaker 5: to be a fourteen billion connectivity business and a fourteen 340 00:16:13,960 --> 00:16:17,560 Speaker 5: billion rev AI business. And I think one of the 341 00:16:17,560 --> 00:16:21,440 Speaker 5: interesting things we saw was, right is SpaceX built Colossus 342 00:16:21,480 --> 00:16:25,640 Speaker 5: one and Colossus two. The two big data centers down Memphis, 343 00:16:25,640 --> 00:16:28,920 Speaker 5: Tennessee area. They did it in existing buildings so they 344 00:16:28,960 --> 00:16:32,400 Speaker 5: could get it up and running very quickly. He you know, 345 00:16:32,440 --> 00:16:34,960 Speaker 5: it's sort of in typical Elon muskway. He's looking to 346 00:16:35,720 --> 00:16:37,920 Speaker 5: drive down the cost quickly. It's just, you know, that's 347 00:16:38,280 --> 00:16:42,240 Speaker 5: smart for any business person put a lot of capacity online. 348 00:16:42,480 --> 00:16:44,400 Speaker 5: Now he has the opportunity to sell some of that 349 00:16:44,680 --> 00:16:47,120 Speaker 5: to the anthropic. I think Google's in there too, so 350 00:16:47,160 --> 00:16:50,480 Speaker 5: you're going to see that AI you know, revenue line 351 00:16:50,560 --> 00:16:53,160 Speaker 5: drive up. But they spend a lot of money to 352 00:16:53,240 --> 00:16:56,640 Speaker 5: keep that going, right. I think they're going to consume 353 00:16:56,800 --> 00:16:59,360 Speaker 5: even more than the revenue they bring in. And there's 354 00:16:59,400 --> 00:17:01,680 Speaker 5: like four or five six billion dollar deficits in an 355 00:17:01,720 --> 00:17:05,920 Speaker 5: operating margin, sorry, operating profit for that business. So you've 356 00:17:05,920 --> 00:17:08,040 Speaker 5: got to find a way to power all that investment 357 00:17:08,080 --> 00:17:11,280 Speaker 5: you need. This IPO is about we're going to invest 358 00:17:11,320 --> 00:17:14,600 Speaker 5: a lot of that money into data centers, and we'll 359 00:17:14,640 --> 00:17:17,440 Speaker 5: invest some of it into Starship because we think long 360 00:17:17,520 --> 00:17:19,120 Speaker 5: term is going to be easier to make those data 361 00:17:19,119 --> 00:17:22,440 Speaker 5: centers in space. It'll be cheaper, and so that's where 362 00:17:22,480 --> 00:17:24,200 Speaker 5: a lot of this money goes. That's the best. 363 00:17:24,520 --> 00:17:27,440 Speaker 4: Stay with us more from Bloomberg Intelligence coming up after this. 364 00:17:31,240 --> 00:17:34,920 Speaker 1: You're listening to the Bloomberg Intelligence podcast. Catch us live 365 00:17:35,000 --> 00:17:38,040 Speaker 1: weekdays at ten am Eastern on Apple, Cocklay and Android 366 00:17:38,080 --> 00:17:41,320 Speaker 1: Auto with the Bloomberg Business App, Listen on demand wherever 367 00:17:41,400 --> 00:17:44,639 Speaker 1: you get your podcasts, or watch us live on YouTube. 368 00:17:45,200 --> 00:17:48,800 Speaker 2: Well, let's continue to talk about space. Why not? Ross Helminson, 369 00:17:48,880 --> 00:17:52,040 Speaker 2: chief operating officer for Space Network Joints US here in 370 00:17:52,119 --> 00:17:54,280 Speaker 2: our studio, Russell. One of the things that I think 371 00:17:54,440 --> 00:17:56,680 Speaker 2: got investors attention on this road show is I try 372 00:17:56,720 --> 00:18:00,280 Speaker 2: to think about the opportunities for SpaceX and for the 373 00:18:00,280 --> 00:18:04,600 Speaker 2: industries the company and elon identifying a twenty nine trillion 374 00:18:04,600 --> 00:18:09,640 Speaker 2: dollars total addressable market, do we have any idea where 375 00:18:09,640 --> 00:18:11,040 Speaker 2: that number really comes from? 376 00:18:11,920 --> 00:18:14,840 Speaker 6: Well, thanks for having me on again. It's a huge number, 377 00:18:14,840 --> 00:18:17,400 Speaker 6: it really is. I don't know if m could really 378 00:18:17,400 --> 00:18:19,880 Speaker 6: add up the numbers. I'm not quite sure exactly where 379 00:18:19,880 --> 00:18:21,760 Speaker 6: that comes from. But I think the kind of the 380 00:18:21,760 --> 00:18:25,159 Speaker 6: thesis is what SpaceX is eventually going to become. It 381 00:18:25,200 --> 00:18:27,960 Speaker 6: really wants to be the infrastructure that's running all industry 382 00:18:28,000 --> 00:18:30,560 Speaker 6: at all markets. So if you think about, you know, 383 00:18:30,680 --> 00:18:33,200 Speaker 6: the Internet in the nineties, you know they're really trying 384 00:18:33,240 --> 00:18:38,200 Speaker 6: to create the backbone for AI infrastructure, infrastructure for this century. 385 00:18:39,080 --> 00:18:41,600 Speaker 6: So what they're looking to do is put a lot 386 00:18:41,640 --> 00:18:45,080 Speaker 6: of AI infrastructure in place, lots of chips, lots of robotics, 387 00:18:45,440 --> 00:18:48,360 Speaker 6: not just for their own use for SpaceX and not 388 00:18:48,440 --> 00:18:50,920 Speaker 6: just for Tesla, but they're looking to do that for 389 00:18:51,040 --> 00:18:55,000 Speaker 6: all industries. So if you have a long term view 390 00:18:55,480 --> 00:19:01,040 Speaker 6: on AI chips and infrastructure and compute, then the argument 391 00:19:01,200 --> 00:19:02,919 Speaker 6: is that all industries would benefit from that. 392 00:19:03,960 --> 00:19:07,520 Speaker 4: Of course, of course SpaceX has become a government contractor. 393 00:19:07,560 --> 00:19:09,360 Speaker 4: It's done a lot of the work that NASA used 394 00:19:09,359 --> 00:19:12,320 Speaker 4: to do. So one of the addressable markets is the 395 00:19:12,440 --> 00:19:15,879 Speaker 4: US government and that's a big customer. How can we 396 00:19:15,960 --> 00:19:18,080 Speaker 4: quantify just how big of an opportunity that would be 397 00:19:18,119 --> 00:19:18,800 Speaker 4: going forward? 398 00:19:19,960 --> 00:19:21,359 Speaker 6: So I think it is pretty big. I mean, if 399 00:19:21,359 --> 00:19:23,639 Speaker 6: you think about the relationship with NASA as well, you know, 400 00:19:23,720 --> 00:19:27,080 Speaker 6: NASA's focus is shifting to more exploration, but from a 401 00:19:27,119 --> 00:19:30,360 Speaker 6: government standpoint, it's definitely been more on the national defense 402 00:19:30,760 --> 00:19:35,239 Speaker 6: gold and Golden Dome type strategy as long as you know, 403 00:19:35,520 --> 00:19:37,919 Speaker 6: you know, the US particularly wants to be you know, 404 00:19:37,960 --> 00:19:42,080 Speaker 6: the dominant force and has recognized through Space Force that 405 00:19:42,480 --> 00:19:45,439 Speaker 6: much of the military will be guided through satellites and 406 00:19:45,480 --> 00:19:49,240 Speaker 6: that technology. I think it's basically our prime for the 407 00:19:49,359 --> 00:19:50,000 Speaker 6: US government. 408 00:19:51,080 --> 00:19:54,080 Speaker 2: So how do you guys think about it? I mean, 409 00:19:54,119 --> 00:19:56,040 Speaker 2: how does this relate to your company and connect what 410 00:19:56,080 --> 00:19:56,760 Speaker 2: you guys are doing. 411 00:19:57,440 --> 00:20:00,679 Speaker 6: Yeah, so we're really focused on the private side. So 412 00:20:00,720 --> 00:20:03,840 Speaker 6: we're helping space tech companies who are not yet public 413 00:20:04,119 --> 00:20:08,320 Speaker 6: commercial arted so raise capital, find customers folks, and revenue. 414 00:20:08,400 --> 00:20:10,679 Speaker 6: And the thing that's really important there is with what 415 00:20:10,880 --> 00:20:13,880 Speaker 6: the SpaceX is doing is it is going to generate 416 00:20:13,920 --> 00:20:16,879 Speaker 6: a love liquidity in the marketplace. So as people you 417 00:20:16,960 --> 00:20:20,080 Speaker 6: will spin out from SpaceX going to get their own thing, 418 00:20:20,359 --> 00:20:23,680 Speaker 6: it's drawing attention from private equity and venture capital into 419 00:20:23,720 --> 00:20:26,119 Speaker 6: the market. That's going to draw a lot of capital in. 420 00:20:26,440 --> 00:20:29,760 Speaker 6: So from our standpoint, it's going to increase this focus 421 00:20:29,800 --> 00:20:33,359 Speaker 6: on the opportunity. But our argument is though, that it 422 00:20:33,440 --> 00:20:36,640 Speaker 6: has to be on the basis that there's real customers 423 00:20:37,080 --> 00:20:41,320 Speaker 6: for those space technologies. And our thesis is that aside 424 00:20:41,359 --> 00:20:45,119 Speaker 6: from governments you know and NASA who doing space exploration, 425 00:20:45,600 --> 00:20:50,439 Speaker 6: that's actually in non space industries, so financial markets and 426 00:20:50,560 --> 00:20:56,439 Speaker 6: you know, global logistics, agriculture, pharmaceutical that's the market there, 427 00:20:56,800 --> 00:20:59,600 Speaker 6: and that remains an opportunity for a lot of these 428 00:20:59,640 --> 00:21:03,160 Speaker 6: innovation native companies. I think SpaceX is more of an 429 00:21:03,160 --> 00:21:05,840 Speaker 6: infrastructure play for those other markets. 430 00:21:06,240 --> 00:21:08,919 Speaker 4: It's an infrastructure play for now. It could also become 431 00:21:09,000 --> 00:21:12,720 Speaker 4: an electric vehicle companies soon as well, or that'll be 432 00:21:12,840 --> 00:21:15,960 Speaker 4: kind of brought into its its orbit because there's a 433 00:21:15,960 --> 00:21:18,800 Speaker 4: lot of talk about how Elon Musk mighte combine SpaceX 434 00:21:18,880 --> 00:21:23,040 Speaker 4: with Tesla. That just becomes another kind of company than 435 00:21:23,080 --> 00:21:24,840 Speaker 4: and not really comparable to what you do. 436 00:21:26,920 --> 00:21:30,280 Speaker 6: Yes, I think there's a couple of things there, you know, 437 00:21:30,320 --> 00:21:33,159 Speaker 6: with from SpaceX and Tesla relationship. You know, one of 438 00:21:33,160 --> 00:21:35,520 Speaker 6: the ideas originally that he wants to get into EVS 439 00:21:35,600 --> 00:21:37,640 Speaker 6: is ultimately he wants to be able to like have 440 00:21:37,720 --> 00:21:40,000 Speaker 6: vehicles up in Mars. You know, for that you need 441 00:21:40,040 --> 00:21:42,919 Speaker 6: electric vehicles and power. So that's part of his broad 442 00:21:43,359 --> 00:21:48,399 Speaker 6: you know, interplanetary you know species strategy there right, But 443 00:21:48,480 --> 00:21:50,520 Speaker 6: when it comes back to you know, what's what's back 444 00:21:50,560 --> 00:21:54,520 Speaker 6: on Earth, it really is about building infrastructure and providing 445 00:21:55,119 --> 00:21:58,600 Speaker 6: things that are used or created for space but used 446 00:21:58,600 --> 00:22:01,840 Speaker 6: back down on Earth. And I think there's enough of 447 00:22:01,880 --> 00:22:05,399 Speaker 6: an alternate market to SpaceX to allow those things to happen. 448 00:22:05,480 --> 00:22:08,960 Speaker 6: So an example would be the International Space Station is 449 00:22:09,000 --> 00:22:11,240 Speaker 6: coming down in a couple of years, and there's going 450 00:22:11,280 --> 00:22:13,919 Speaker 6: to be new commercial space stations going up, which is 451 00:22:13,920 --> 00:22:17,320 Speaker 6: going to allow drug research and other types of research 452 00:22:17,440 --> 00:22:21,359 Speaker 6: and in orbit manufacturing to happen. That is going to 453 00:22:21,359 --> 00:22:24,000 Speaker 6: be core in other parts of the infrastructure that the 454 00:22:24,560 --> 00:22:27,920 Speaker 6: SpaceX market space X will will not serve. 455 00:22:29,359 --> 00:22:32,000 Speaker 2: How's the capital raising out there other than SpaceX or 456 00:22:32,080 --> 00:22:34,840 Speaker 2: companies that want to do space based businesses. 457 00:22:35,240 --> 00:22:37,800 Speaker 6: It's actually been very healthy over the last number of years. 458 00:22:37,840 --> 00:22:39,679 Speaker 6: I mean, you could argue it's been quite healthy over 459 00:22:39,720 --> 00:22:41,920 Speaker 6: the last fifteen years, but the last couple of years 460 00:22:41,960 --> 00:22:44,800 Speaker 6: there's definitely been an inflow of private capital. You know, 461 00:22:44,840 --> 00:22:47,760 Speaker 6: it's not for things that are like rockets and hardware 462 00:22:48,000 --> 00:22:51,320 Speaker 6: and satellites. It's traditionally not been a venture model, but 463 00:22:51,640 --> 00:22:54,080 Speaker 6: I think they're starting to realize that this is a 464 00:22:54,119 --> 00:22:57,320 Speaker 6: play towards more venturel like businesses that can run on 465 00:22:57,359 --> 00:22:58,120 Speaker 6: the infrastructure. 466 00:22:59,359 --> 00:23:01,680 Speaker 4: He talked about how this will create a liquidity event, 467 00:23:01,720 --> 00:23:03,560 Speaker 4: this IPO, it's going to make a lot of people rich. 468 00:23:03,640 --> 00:23:06,159 Speaker 4: We talk a lot about the SpaceX current employees and 469 00:23:06,240 --> 00:23:09,879 Speaker 4: former employees. If they do become very wealthy and decide 470 00:23:09,880 --> 00:23:12,680 Speaker 4: to step away and stop working. They may go off 471 00:23:12,720 --> 00:23:15,359 Speaker 4: and start their own company as well. This creates this 472 00:23:15,560 --> 00:23:19,000 Speaker 4: large ecosystem. Do you have any sense of timing around 473 00:23:19,240 --> 00:23:20,720 Speaker 4: how this plays out. 474 00:23:23,000 --> 00:23:25,280 Speaker 6: That's a hard one because I'm sure there's gonna be 475 00:23:25,320 --> 00:23:26,880 Speaker 6: a lot of lock ups in there and a lot 476 00:23:26,880 --> 00:23:30,280 Speaker 6: of people looking to fulfill the SpaceX mission. But I 477 00:23:30,320 --> 00:23:32,399 Speaker 6: think certainly over the next couple of years you're going 478 00:23:32,440 --> 00:23:34,880 Speaker 6: to see a lot of that activity happening. 479 00:23:35,680 --> 00:23:40,399 Speaker 1: This is the Bloomberg Intelligence Podcast, available on Apple, Spotify, 480 00:23:40,560 --> 00:23:44,040 Speaker 1: and anywhere else you get your podcasts. 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