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SpaceX uh of course this seems like a hundred years ago officially public and as uh one Scott Galloway predicted it
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did indeed close up on its first day of trading and you had said it was going to
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be about 20% and not more which is interesting. It was at 19 something%. Shares are at a high of 177 at the time
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of this taping after the company's public debut on Friday making the current market cap 2.32 trillion. You
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thought it might be a scooch under under two. um his first day on the market. Over 500 million shares traded hands. A
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lot of movement here. Um Elon himself of course crossed the milestone thanks to the pot becoming the world's first
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trillionaire. There were some notable buyers. Gina Reinhardt, Australia's richest person bought over a billion
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dollar stake in the company and Kathy Woods Arc Investment bought more than $500 million worth of stock. So go
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through if there's anything surprising there because uh venture and also venture funding for US space technology
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firms excluding SpaceX jumps $7.5 billion in 2025 from 2.5 billion the previous years probably we'll see if
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that goes anywhere because it's a that's also a money can be a money furnace u as
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you the word you use but any thoughts on where it is right now >> I thought that the bankers and and Musk
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and look I I think the most significant thing here is that this we've never seen
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such engineered manufactured scarcity. There was tens of billions of dollars of demand for this IPO that has never
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existed for an IPO before. And then you combine it with the fact that unlike other IPOs that went public on the
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NASDAQ, it didn't have to float more than 10%. It only floated 5%. >> Yeah. Very scarcity as you said.
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>> So you've just created manufacturer scarcity. Now to be fair, it's up again today. So this has created a level of
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excitement in the market. I do think you you have to highlight the positives here
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and that is I never want to be someone that demonizes success. There are 14 new billionaires in Texas that you've never
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heard of. Those people will give money away. They will start new businesses. Something that's uniquely American is
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that we continue to produce companies like this and entrepreneurs like Elon Musk. It's going to create a lot of
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economic growth. You're going to see a surge in philanthropy from Berkeley to the University of Texas. It inspires a
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lot of people. I it is there's a lot of positives here and we're seeing venture funding increasing in you know space
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related um projects. So there there's there's a a lot to like here. You know, I don't like the manufactured scarcity
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and the what I'll call the overlying narrative of sort of like the hero's journey here.
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>> And the numbers at certain businesses are not great. >> Yeah. Look, this from a valuation
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standpoint, and this is this is what Musk has always been able to do is to create this this uh narrative over
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numbers that's like no one else in history. Um so but right now the stock is trading 30% above the IPO price. Um
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and then he has also again and I'm I go back to governance there's all these different lockups like if you trade on a
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certain platform and you bought shares through direct share purchase on a certain platform they technically don't
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have a lockup but but they if they sell their shares they can't trade on the platform before which is like a soft
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lock up. there's certain uh criteria around when you can sell if the stock is up a certain amount etc. To be fair,
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Elon's locked himself up. I doubt he's planning to sell. He'll just borrow against his stock. But what they've
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effectively done, what you're not supposed to do, is they've created different class of classes of shares,
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which you're not supposed to do. So again, I find that this is this is really inspiring and important and going
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to be great for economic growth on certain levels. I also believe that this entire sector is going to have not a
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collapse but a pretty serious draw down when people after two or three earnings calls are forced to justify anything
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resembling a future that involves the kind of earnings built into this thing >> right
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>> and then the rush to space technology firm same thing they're going to overinvest which is normal like I would
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assume presumably >> and that and quite frankly that's one of the great things about America because
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we overinvested in the internet and the technology survived and a lot of those companies came back and that investment
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was good but you didn't want to one of the one of the investors overinvesting initially.com. Yeah.
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>> Yeah. So, but I said somebody called me and I said this on pivot. Someone called
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me and said I I have allocation. Should I take it? And I said take it and trade out on the first trade.
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>> If you buy it and trade out, you don't do as most people don't do as well except in certain cases, right? It's
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there were all these like really interesting statistics of buying and selling um that were not good in the
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long run over over time. It's just you got to hit the exact right one or you lose mo money most of the time.
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>> This was different because so first off uh trading out trading out you you get
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short-term capital gains at a higher rate. So there's a lot of evidence that shows that just generally with investing
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you're better off just buying and trying to never sell. It's just trading trading
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is a difficult is a difficult game. I thought and I said this I said they are going to manufacture a 20% pop. The
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bankers exactly >> and everyone are figuring out a way to create a supply demand imbalance that
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will exactly peg this at a 20% pop. What's impressive and punctures that theory is that it's up another 11%
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today. And the thing that also just the thing that deserves a nod is the best VC
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in the world is not Andre Horowitz or whoever initially funded SpaceX. How >> respond? Well, it's in my opinion, it's
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Uncle Sam and that SpaceX investors and the banks taking SpaceX public should remember
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>> that we would not be here today without grants from the federal government. In
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2008, SpaceX was on the verge of bankruptcy >> and would likely have run out of money
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if not for a grant from NASA. >> Yep. >> And the golden law, >> same thing with Tesla.
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>> And then the golden law of stupidity here, Trump is trying to cut NASA's funding by more than 20% this year.
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>> Same with mRNA technology. Same with the government is one of the greatest investors of all time if you could think
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about it that way. best VC in history, whether it's medical research for our universities or electric charging
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stations would you know and they would argue back well they're going to get their bite they're going to get enormous
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return through tax revenues >> possibly >> the the big debate this will will stir
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is in America we've been talking about for decades now what's dominated the conversation is how you create wealth
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the conversation that is superseding that is what you should do with wealth once you have it. And so right now Elon
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Musk could buy all of Manhattan, every building, every condo, every park with his that's how much money he has right
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now. And whether or not this level of concentration of power which comes in a capitalist society for money
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presents a risk. And I'm of the mind that I think it's important that eventually and I I'm in favor of of
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eventually having trillionaires, but we should have guard rails over the power and progressive taxation, which we don't
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have right now. >> Can I just say one thing I want to push back on, and that you've created all
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these rich people are going to give to charity. If you look at the statistics, I don't think they're going to be
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charitable. I don't think they're going to do good things. I just don't I don't think this class I don't think Elon Musk
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has had a very good record. So, I just I I'm not expecting these people to be I think they're going to be on an ongoing
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quest for more money and more power and more consolidation. So, I'm not impressed with their charitable uh
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thoughts. And I'm I'm glad they're creating jobs, but they would immediately cut you if they had to.
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That's I just don't think they have that in them. >> You're talking about Okay. But I I think
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we need to parse that. And that is if you look at billionaires and their wives, the wives have hands down been
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more philanthropic. And it doesn't and and the the quote unquote billionaire masters of the
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universe have not acquitted themselves well on a lot of levels. But there's just no doubt this type of
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wealth creation event is going to result in a surge in philanthropy. It just does. That would be great
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>> because you're going to have a lot of people who wake up and have $20 million
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and think, I'm going to give 2 million bucks to the local food bank or I'm going to give 50,000. I I talked to, you
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know, I'm I'm involved with the University of California. They're all revising their giving goals up for next
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year because of the IPOs coming down the and they have so many alumni. I'm not talking about Elon Musk. I think
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it would be you could you could make a credible argument that he's not the most philanthropic person. I get that and you
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can definitely make an argument that Mackenzie Scott and Melinda French Gates are more philanthropic than their
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husbands. But when you see these types of liquidity events, local philanthropies surge in terms of in
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terms of uh uh money. There's look there's for all of SpaceX's problems and income inequality, there isn't a nation
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on Earth that wouldn't kill to have those problems. I I would agree. I just think it's going
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to go into political activism in a way that could be deletarious to most of us. That's
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>> that's where it's going. It's not going to helping a kid. >> Let's be clear. >> Elon Musk, in my view, can probably
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decide who the next president is. >> Yeah, that's correct. >> He spent $250 million
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and had influence on the election. Maybe he didn't decide it, but he had influence on it. He thinks what happens
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if he decides to put 2.5% of his net worth or 25 billion or 100 times what he spent
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>> last time. >> Yeah, he's a freight train. >> And also to be to be fair, are we
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comfortable and I he deserves credit. One of the one of the things that doesn't get he doesn't get enough credit
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for is he has turned off Starlink for Russia and it is it has put Russia at a severe disadvantage to Ukraine. And I
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think that is a wonderful thing and he deserves credit for it. Having said that,
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>> he changes his mind. >> Well, that's exactly right. Having said that, is should that power reside in a
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private citizen that has no government or electoral oversight? >> No, it's not. >> But look, it's a ton of economic growth.
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The banks made a ton of money. You have a lot of people. 4,000 people became millionaires on Friday.
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>> I get it. I hope they're better better at it. I just think I'm not even Musk is
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one thing, but I'm worried about others that aren't quite so broad. I just like I always whenever I see a box, I think
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the Ulain's the Eul I N E. I don't know how to pronounce it, but they're like huge givers to crazy right-wing causes.
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And so I just am like, "Oh god, the boxes, the this, the that." Anyway, I I just hope that they um that they
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>> the Citizens United problem. I hope that they're charitable. That's that's what I
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hope.