Elon Musk is set to become the first trillionaire with the launch of the SpaceX IPO. That’s a jaw-dropping amount of money and proves that the Elon hype-train is one of the all-time greatest business moves.
I don’t want to get into valuation but it’s ridiculous but, hey, if someone will pay then it works. The company is selling just 5% of the equity in the IPO but the valuation is $1.75 trillion.
The fear was that investors wouldn’t line up to buy it and there’s evidence that’s the case, or at least it was the case. The IPO was being pushed onto retail, which is always a red flag.
Now, Reuters reports that it’s drawn more than $250 billion of investor demand, citing people familiar, or nearly 4x what’s being floated. Notably though, these are expressions of interest, not firm bids.
The company is marketing itself as a data-centers-in-space company, which is some science fiction stuff but Elon’s sold fantasies before and if history repeats, he can promise to deliver ‘self-operating data centers in space next year’ for at least 10 years and the market will continue to eat it up.
All told, this report and the Claude release are helping to turn around sentiment in the Nasdaq
