00:00What do we know? I mean, did they actually articulate here what the pricing might actually
00:03look like when this thing comes about next week? Yeah, I mean, it's confirmation in so far as
00:08they're saying $135 a share and seeking to offer 555.6 million shares. That was in the reporting.
00:16There's still some math to be done. I mean, all day long, we've been hearing that
00:19this was a very conscious early move to set a fixed price early in the roadshow. That's not
00:26how this normally works, right? You do the roadshow, the marketing exercise, and you do that
00:30with a price range. But it's 135, raising $75 billion officially, therefore, the biggest IPO in history
00:37on a dollar raise basis. There's math still to be done. If you remember, we broke the story May 15th
00:43that they had done a five-for-one stock split of the private shares, which took it from about $500
00:49a share
00:49to 105.30. That means a 28% jump based on this price they're going with early. I'm still
00:56hearing that there's a path to it going higher. But in the S1A, confirmation of what we put in
01:02writing this morning. All right. So we talk about this idea, the 550, we'll just round it up,
01:0756 million shares here. 135 apiece here. We know the ticker already. SPCX for all you meme stock
01:15degenerates out there that bid up Virgin Galactic. $75 billion, the biggest IPO. There are some corporate
01:21governance issues here, Ed. And I was speaking with the SEC chair, Gary Gensler, a little bit
01:25earlier today. And I am curious whether it's even worth talking about that. This idea that one way or
01:31another, everybody is going to want to seem to get a piece of this, whether you really want to be
01:36invested in SpaceX, whether you want to be invested more importantly in Elon Musk, and more importantly,
01:42all of the passive funds that one way or another are going to have to have some exposure to this.
01:46So is there any chance that when we look at these numbers here, that we might have you on the
01:51program
01:51in a couple of days and see this actually upsize, either in terms of price or scale?
01:56Well, you know, there's still the reporting that the pricing is June 11th, right? And again, the roadshow
02:02is still going to happen. They're going to host events coast to coast. JP Morgan's hosting one in New York
02:07City, where the whole point is the exercise is still to pitch the investors. And again, what I'm saying is
02:12I've
02:12been hearing all day long. This was a conscious decision to go at 135 and let the market talk SpaceX
02:19into going
02:20higher. So yes, mechanically, but also it becomes academic, doesn't it? Like when trading starts and whenever
02:26listing day actually ends up being, as we've seen in the history of IPOs, as unprecedented as this is, the
02:34gains from
02:35where the IPO prices will make that number academic. It will. I am curious if you can just talk a
02:41little bit about the
02:42business itself, Ed. And you've obviously followed this company a lot. SpaceX launches rockets and launches
02:49satellites. It has Starlink. I think for a lot of investors, that's really what they wanted a piece of. I've
02:54heard from a lot of
02:55investors. They were disappointed about XAI being rolled into this, a money loser. They were disappointed about some of the
03:01relationships with Tesla itself, as well as some of Elon Musk's other business ventures. When we talk about what
03:09Elon Musk's pitch is going to be on this roadshow, and I know he won't necessarily be in these meetings
03:15themselves. But what that pitch is, am I investing in a space company? Am I investing in an AI company?
03:22Or I'm investing
03:23in Musk, Inc.? Musk, Inc., and all of the above. You know, the way that it's set out in the
03:29S1 with the total addressable
03:31market figure is you have $28.5 trillion total. Two of that is, $2 trillion is the existing business, launching
03:39government and private sector payloads into orbit, and then Starlink is a constellation-based internet service.
03:45$26.5 trillion is what they call enterprise AI, which literally, in simple terms, the sale of software to
03:52companies around the world, but also Orbital Data Center to get there. One conversation I've been having a lot
03:58recently with people who have a meaningful position in this company, are high up the cap table, is that, yes,
04:04we note that XAI, the merger happened earliest year, has significant losses, right? $6 billion last year,
04:11a few billion to start the year. But people also see this very interesting business model through the
04:18anthropic deal, where Musk is talking about it being a short-term deal on social media. But they're basically
04:24saying what XAI is very good at is building data centers quickly and making them very, very operationally
04:31efficient, dollar per token basis. There's a fourth bucket you didn't say.
04:36What's that?
04:37SpaceX AI is a hyperscaler, selling compute to third parties as a bridge to get them to that very distant
04:44future of Orbital Data Center, then Mars, and in the interim, an economy on the moon. And people are
04:49taking that very seriously and modeling for it when they're deciding how to participate in this IPO going forward.
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