SpaceX's market cap has lost about $1 trillion in value since its June 16 peak and hit a new low since its record-breaking IPO.
  • spicystraw@lemmy.worldEnglish
    9·
    1 month ago

    Was this not the plan all along? I thought it was an open secret to open woth high price, let initial investors sell their shares. Let 401K and small-time investors buy it, up and take the fall.

    • wewbull@feddit.ukEnglish
      9·
      1 month ago

      Yep. AI has drained the venture capital well dry. So…

      • You merge xAI with SpaceX to make one profit making company and a loss making company in to a mixed financial bag.
      • Hype “Data-centres in Space” for a good six months to make it seem like it all makes sense.
      • Sell all your compute to Anthropic / Google (with 90-day termination clauses) to get some revenue on the books.
      • Lobby that you’re such a good deal S&P and NASDAQ should change their rules to admit entry to their “required to buy” stocks. NASDAQ bites, but S&P refused.
      • IPO: $80B raised from IPO partners (banks) at $135 per share. Job done. No control lost because the share of the company was so low.
      • IPO subscribers (banks) sell to markets at upto $225. Lots of happy bankers. Retail markets (e.g. investment funds) now holds the shares, but it’s all good, right? Nasdaq have it listed so there’s an enforced buy in two weeks.
      • Stock slides. Enforced buy comes at ~$145 per share and it feels a bit more firm for a day or two.
      • Stock resumes it’s slide to below it’s IPO price.
      • Stock now sits at $124

      Net result:

      • Space X : +$80B
      • IPO subscribers: +$40B…ish
      • Public Shareholders: +5% of SpaceX (Currently $69B) & -$120B