00:00Benedict talk to us a little bit about why we're seeing somewhat of a revision lower for a potential valuation
00:05for SpaceX when it is expected to go public next month.
00:10Yeah. So the the listing is not far off. It's a couple of days off. So the pricing will settle
00:16in the next couple of days. And I think what we're seeing right now is sort of the market trying
00:20to figure out which way things will fall.
00:22It's a little lower is the latest number we're hearing. As you said, one point eight trillion, which, you know,
00:28if you think about trillions, that's almost a rounding error compared to the more than two trillion.
00:32So this is probably sort of both sides on the investment banking side, but also on the on the buyer
00:39side trying to sort of get a sense of the momentum.
00:42It might also be a case of sort of, you know, come in with low expectations and then beat them.
00:47So that might be part of that.
00:49So it's difficult to say at this point. Also, importantly, Musk does did come out a short while ago with
00:55a single word response saying false.
00:58So we'll have to see who's right in the end. But, you know, this this is probably, as I said,
01:04sort of a positioning game going on right now.
01:06You don't want to come in with your guns blazing too soon. But having said that, it's been about a
01:12week now since we got sort of a good sense of the numbers as part of the listing.
01:17And these are pretty, you know, mind boggling figures that we've we've read. You know, the the the the value
01:25is one of them.
01:26But then also the total addressable market is twenty eight trillion. These are sort of utopist numbers in some cases.
01:33So whether it's one point eight trillion, whether it's two trillion, the difference isn't that big.
01:39Some might say sort of like out of this world, maybe, you know, planetary expansion.
01:44Who knows? Before we let you go, just on that number, if it had eighteen point seven billion dollars in
01:50revenue in twenty twenty five, up from fourteen billion dollars,
01:54you know, in twenty twenty four, that would if it were valued at one point eight trillion dollars, that would
01:58be a price to sales multiple of like ninety six,
02:02which is pretty huge. I mean, you know, software companies are typically what, ten X.
02:08So even if this is a more conservative valuation for a market cap, this is still, you know, huge.
02:14I guess people are you think this is a huge opportunity. Is that realistic?
02:20I think you're absolutely right. It's the key word is opportunity here.
02:23And I think people are buying into this, not sort of where things stand right now, but rather what this
02:27business might be in five years and ten years and twenty years.
02:31And if there's one thing that Elon Musk has shown and has proven, he can build a market from very
02:36little or nothing.
02:37He's done so with Tesla. He might do so again now with with space exploration.
02:42Obviously, there's a lot of things that have to go right. Again, some of the things in the in the
02:47prospectus included items like we want to have a million people on Mars.
02:52So, you know, that is sort of future fantasies, future thinking.
02:56But if you can pull off some of those things, then maybe that valuation might not seem quite as lofty
03:01as it is now.
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