Elon Musk is playing packman

Today marks the biggest IPO in history. Shares of 3 (or 4 🤔) of Elon's companies after successfully merging into one SpaceX, it is gonna become publicly tradable. Might sound like a regular IPO but there is a twist - the valuation is over $1.75 trillion. To put it into perspective it's more than half of Germany's whole stock market. After the IPO Elon is supposed to officially become the only person to join the 4 commas club. And the way he managed to pull all this off is just absolutely insane.

The history of the snowball:
- Musk has purchased unprofitable Twitter for $44 billion a few years ago partly financed with debt and Tesla stocks. He rebranded it to X and to stop the company from bleeding cash he fired 80% of the staff. His official motive was to support free speech but let's be honest, it was clear that he wanted to control the most politically saturated social media platform
- he established an AI company called xAI after leaving non profit OpenAI due to losing the battle for the CEO seat to Sam Altman. To make xAI somewhat competitive he came up with an idea - "Why not merge X into xAI so it can take all the data from X and feed it to AI's training data?". But nobody cared about Grok, so he integrated in to X in the hopes of earning at least something
- xAI kept burning money so here is his next brilliant idea. "Why not merge xAI with SpaceX so the profit coming from Starlink can cover the losses?". This happened earlier this year. The snowball although melting seems to be finally in a good shape for becoming public. Now they can collect $75 billion from IPO to keep the AI machine running

Also to justify the crazy valuation for an unprofitable company they started making deals with Google and Anthropic to rent out space data centers that don't exist yet. Impressive. I've been wondering for quite a while when SpaceX is going to become public but I didn't expect that it would happen in this way - in the way to make billionaires trillionaires

#financeandbusiness #reflection