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SpaceX set its IPO price on Wednesday at $135 per share, targeting a valuation of at least $1.75 trillion. Cool number, right?
But let’s be clear about what this means, because rather than running a traditional book-building process where institutional investors bid for shares and the market collectively discovers what the company is worth, Elon Musk is simply telling investors the price and inviting them to participate or not. For context, even Google let the market decide in 2004. Elon has rather predictably decided the market's opinion really shouldn't matter when it comes to his big baby **** e company.
The prospectus justifies the number by identifying what **** eX calls the "largest actionable total addressable market in human history," pegged at $28.5 trillion. For more context, the US GDP is roughly $32.4 trillion. The same document also mentions, in passing, that the company "has a history of net losses and may not achieve profitability in the future." Those sentences exist together in the same public filing without apparent irony.
And by the way, Morningstar published a note Monday that may offer a clue about why Musk chose to set his own price rather than let the street discover it.
SpaceX set its IPO price on Wednesday at $135 per share, targeting a valuation of at least $1.75 trillion. Cool number, right?
But let’s be clear about what this means, because rather than running a traditional book-building process where institutional investors bid for shares and the market collectively discovers what the company is worth, Elon Musk is simply telling investors the price and inviting them to participate or not. For context, even Google let the market decide in 2004. Elon has rather predictably decided the market's opinion really shouldn't matter when it comes to his big baby **** e company.
The prospectus justifies the number by identifying what **** eX calls the "largest actionable total addressable market in human history," pegged at $28.5 trillion. For more context, the US GDP is roughly $32.4 trillion. The same document also mentions, in passing, that the company "has a history of net losses and may not achieve profitability in the future." Those sentences exist together in the same public filing without apparent irony.
And by the way, Morningstar published a note Monday that may offer a clue about why Musk chose to set his own price rather than let the street discover it.
1 day ago
