1 00:00:00,020 --> 00:00:03,330 Ejaaz: Four days. That's how long SpaceX has been a public company. 2 00:00:03,330 --> 00:00:08,090 Ejaaz: And in those four days, it's broken just about every single IPO record that there's ever been. 3 00:00:08,590 --> 00:00:13,280 Ejaaz: They blew past Amazon and Microsoft's valuation, reaching a $3 trillion valuation. 4 00:00:13,280 --> 00:00:16,340 Ejaaz: It is the fourth most valuable company in the world. 5 00:00:16,460 --> 00:00:20,430 Ejaaz: But Elon also became the world's first trillionaire. He made more money in one 6 00:00:20,430 --> 00:00:25,000 Ejaaz: day than Warren Buffett has made in his entire life. Just absolutely insane. 7 00:00:25,400 --> 00:00:29,590 Ejaaz: The stock itself, Off the price is already 50% above its IPO price, 8 00:00:29,900 --> 00:00:34,000 Ejaaz: and they've already made their first acquisition, $60 billion to acquire Cursor 9 00:00:34,000 --> 00:00:36,470 Ejaaz: to become the number one frontier AI lab 10 00:00:37,170 --> 00:00:39,090 Ejaaz: it's not all unstoppable for 11 00:00:39,090 --> 00:00:43,430 Ejaaz: SpaceX right now. Only 4% of the stock supply is available to purchase. 12 00:00:43,670 --> 00:00:48,430 Ejaaz: And the company is valued at 107x its earnings. This is the largest gap that 13 00:00:48,430 --> 00:00:51,970 Ejaaz: we've seen for any Mag 7 company or top Fortune 500 company. 14 00:00:52,260 --> 00:00:55,540 Ejaaz: And there's an aggressive unlock schedule, which we'll get on later in the episode. 15 00:00:55,540 --> 00:00:58,460 Ejaaz: But the number one question that's on my mind, and I'm sure a lot of your minds 16 00:00:58,460 --> 00:01:04,730 Ejaaz: is, is SpaceX the investment of the century? Or is this the strongest signal that we in an AI bubble. 17 00:01:05,020 --> 00:01:07,760 Josh: Well, according to Elon, it is. He just posted that they're going to have a 18 00:01:07,770 --> 00:01:09,600 Josh: trillion dollars of revenue by the end of the decade. 19 00:01:09,710 --> 00:01:13,220 Josh: That is going to be a tremendous amount of upside. And retail seems to agree. 20 00:01:13,480 --> 00:01:16,730 Josh: I was looking at this chart just before we started recording that showed over 21 00:01:16,730 --> 00:01:20,790 Josh: the last two trading sessions, retail investors bought nearly as much SpaceX 22 00:01:20,790 --> 00:01:24,570 Josh: as every other single US stock combined. 23 00:01:24,750 --> 00:01:28,570 Josh: And it's been amazing. The first day of trading, it was up, what is it, 20%? 24 00:01:28,740 --> 00:01:32,930 Josh: Second day, 20%. Third day, 5%. Today, as we're recording, this is up another 5%. 25 00:01:33,220 --> 00:01:36,590 Josh: The thing has been up only. It eclipsed a $3 trillion market cap, 26 00:01:36,970 --> 00:01:40,770 Josh: making it the fourth most valuable company in the world over Microsoft. 27 00:01:40,770 --> 00:01:43,620 Josh: I mean, look at this chart. It's crazy. We have NVIDIA, Alphabet, 28 00:01:43,620 --> 00:01:47,220 Josh: which is Google, Apple, SpaceX, and Microsoft in the top five. 29 00:01:47,220 --> 00:01:51,890 Josh: It's unbelievable that this new company comes on the scene and is immediately among the top five. 30 00:01:52,220 --> 00:01:55,920 Josh: And it has been doing really well for good reason. There's a very strong outlook 31 00:01:56,150 --> 00:01:58,670 Josh: on revenue, on guidance, on the actual company. 32 00:01:58,670 --> 00:02:03,760 Josh: But man, like you said, Ejaz, it's very expensive and there's a lot to get into 33 00:02:03,760 --> 00:02:07,730 Josh: with this as it relates to how expensive this is but it's a double-sided sword, 34 00:02:08,450 --> 00:02:13,730 Josh: because this premium that the stock has allows it to do really interesting things 35 00:02:13,730 --> 00:02:18,650 Josh: like for example purchase a company for 60 billion dollars effectively for free 36 00:02:19,070 --> 00:02:22,060 Josh: and that has some upside for the stock as well so there's a lot of really exciting 37 00:02:22,060 --> 00:02:24,740 Josh: things that have been happening with spacex it's doing well i think the answer 38 00:02:24,740 --> 00:02:27,680 Josh: that i want to give by at the end of this episode is, 39 00:02:28,380 --> 00:02:31,670 Josh: Should you be investing in this now? And what is our kind of forward outlook? 40 00:02:31,830 --> 00:02:38,790 Ejaaz: So let's get into what exactly happened. On Friday, they IPO'd 555.6 million 41 00:02:38,790 --> 00:02:40,950 Ejaaz: shares were released for trading. 42 00:02:41,590 --> 00:02:47,740 Ejaaz: That's around 4.3 to 4.7 of the entire share supply. So not that much. 43 00:02:47,740 --> 00:02:53,020 Ejaaz: And we'll get into why that might be problematic later, but at a fixed price of $135. 44 00:02:53,210 --> 00:02:56,370 Ejaaz: Now, immediately upon listing, it hit $160. 45 00:02:56,580 --> 00:03:00,060 Ejaaz: And by the end of trading on Friday, I think it was sitting just above $200. 46 00:03:00,060 --> 00:03:03,700 Ejaaz: And then like you mentioned, it's been on a subsequent run that has put it just 47 00:03:03,700 --> 00:03:08,840 Ejaaz: around 50% above its IPO $135 price. 48 00:03:09,060 --> 00:03:12,670 Ejaaz: Now, this is absolutely insane, because as I mentioned earlier, 49 00:03:13,690 --> 00:03:17,480 Ejaaz: There's a large discrepancy between what SpaceX generates as a company. 50 00:03:17,480 --> 00:03:20,130 Ejaaz: Just last year, they generated around $15 to $18 billion. 51 00:03:21,110 --> 00:03:25,250 Ejaaz: Now, it's positioned above Amazon and Microsoft, but above Amazon, 52 00:03:25,250 --> 00:03:30,610 Ejaaz: which comparably generated, I believe, $770 billion last year, 53 00:03:30,740 --> 00:03:33,880 Ejaaz: of which $80 billion was actual revenue that they earned. 54 00:03:34,210 --> 00:03:37,170 Ejaaz: Compare that to SpaceX, they lost $4.9 billion. 55 00:03:37,870 --> 00:03:41,340 Ejaaz: So the multiples are kind of like reaching for a moment, but it was the most 56 00:03:41,340 --> 00:03:44,530 Ejaaz: insane wealth-creating event ever. 57 00:03:44,530 --> 00:03:49,410 Ejaaz: Over 4,400 SpaceX employees became millionaires, with I think well over 100 58 00:03:49,410 --> 00:03:53,300 Ejaaz: of them earning $100 million just from this singular event. 59 00:03:53,600 --> 00:03:57,830 Ejaaz: Elon himself, as I mentioned, became the world's first trillionaire. 60 00:03:58,110 --> 00:04:01,740 Ejaaz: And of course, his wealth is mixed up in a lot of different companies. 61 00:04:01,740 --> 00:04:08,320 Ejaaz: But now SpaceX, his baby, formerly it was Tesla, has now become his main a source 62 00:04:08,320 --> 00:04:11,810 Ejaaz: of value creation. So the question in everyone's mind is, what are you going 63 00:04:11,810 --> 00:04:13,260 Ejaaz: to do with all this money? 64 00:04:14,010 --> 00:04:18,890 Ejaaz: Now, there was an option that we spoke about a few episodes ago around SpaceX 65 00:04:18,890 --> 00:04:22,880 Ejaaz: potentially acquiring this different company that will allow them to leapfrog 66 00:04:22,880 --> 00:04:26,250 Ejaaz: and become a frontier AI lab. Turns out that's exactly what Elon did. 67 00:04:27,260 --> 00:04:30,530 Josh: Yeah, it's pretty amazing how they effectively got it for free. 68 00:04:31,150 --> 00:04:34,860 Josh: When I think about acquisitions that were made, we can remember the ex-acquisition 69 00:04:34,860 --> 00:04:38,930 Josh: of Twitter at the time. Yeah. And how it was considered to be this humongous 70 00:04:38,930 --> 00:04:42,050 Josh: amount of money for 40-something billion dollars that was spent. 71 00:04:42,300 --> 00:04:46,480 Josh: Cursor just got acquired for 60 billion dollars. And we have to give congratulations 72 00:04:46,480 --> 00:04:52,660 Josh: in order first to the four co-founders who are now worth over 5.5 billion dollars each. 73 00:04:52,820 --> 00:04:55,380 Josh: Allegedly, we have a great photo, actually, of them we could show. 74 00:04:55,650 --> 00:04:59,730 Josh: Because these are these are not they're not like grown-ups these like young 75 00:04:59,730 --> 00:05:01,590 Josh: people they're in their 20s these. 76 00:05:01,590 --> 00:05:03,410 Ejaaz: Are kids they're kids and 77 00:05:03,410 --> 00:05:07,410 Josh: They're all multi-billionaires so to these four people on the screen congratulations 78 00:05:07,410 --> 00:05:11,730 Josh: you have permanently escaped the underclass for life and for probably the next 79 00:05:11,730 --> 00:05:15,450 Josh: 50 generations of life you created an incredible product congratulations, 80 00:05:16,130 --> 00:05:19,480 Josh: so elon bought it and the way that they bought it was really interesting and 81 00:05:19,480 --> 00:05:22,220 Josh: also just some backstory for those that don't know cursor is that thing that 82 00:05:22,220 --> 00:05:25,000 Josh: we talk about a lot called the harness It is basically the, 83 00:05:25,870 --> 00:05:30,890 Josh: operating system, the body that will embody the Grok and the XAI and probably 84 00:05:30,890 --> 00:05:31,930 Josh: cursor models in the future. 85 00:05:31,930 --> 00:05:35,160 Josh: So cursor, incredible company, really a remarkable comeback. 86 00:05:35,390 --> 00:05:38,740 Josh: And Elon essentially was able to acquire them for free. How? 87 00:05:39,080 --> 00:05:43,320 Josh: Well, if you remember back earlier this year in April, SpaceX locked up an option 88 00:05:43,620 --> 00:05:47,970 Josh: to either pay $10 billion for a partnership or buy the whole company for $60 billion. 89 00:05:48,610 --> 00:05:52,550 Josh: At the time, SpaceX stock was not that high. It was still private. 90 00:05:52,870 --> 00:05:57,440 Josh: It was maybe sub $100 at the time or just above $100, whatever it may be. 91 00:05:58,000 --> 00:06:03,650 Josh: Fast forward to today, that stock is now worth $211. Each stock is worth so 92 00:06:03,650 --> 00:06:04,930 Josh: much more than it was at the time. 93 00:06:05,070 --> 00:06:07,860 Josh: What effectively what that means is because they're buying this in all stock, 94 00:06:08,090 --> 00:06:12,700 Josh: it allows them to basically just grant a significantly less amount of stock 95 00:06:12,700 --> 00:06:16,000 Josh: to these founders because the price is so much higher. So that option that they 96 00:06:16,000 --> 00:06:18,780 Josh: paid for earlier in the year is really paying off dividends. 97 00:06:19,070 --> 00:06:22,310 Josh: And the result is that they got a really steep discount on buying cursor because 98 00:06:22,310 --> 00:06:24,980 Josh: if they would have bought it just a couple months earlier, the price would have 99 00:06:24,980 --> 00:06:26,370 Josh: been over double effectively. 100 00:06:26,720 --> 00:06:32,160 Ejaaz: Yeah. So Elon basically bought this amazing frontier AI lab with an inflated 101 00:06:32,160 --> 00:06:35,500 Ejaaz: currency that was SpaceX stock. And the way he was able to do this was because 102 00:06:35,500 --> 00:06:39,130 Ejaaz: there's only a 4% float supply for the shares itself. 103 00:06:39,380 --> 00:06:42,300 Ejaaz: Now, I just want to talk about the option very quickly. 104 00:06:42,900 --> 00:06:48,600 Ejaaz: It was $10 billion that Cursor would pay them if they decided to not acquire Cursor. 105 00:06:48,820 --> 00:06:53,590 Ejaaz: And they had 30 days. SpaceX had 30 days from the start of the IPO to decide 106 00:06:53,590 --> 00:06:57,780 Ejaaz: whether they wanted to acquire Cursor or not for an all-star transaction or whatever that might be. 107 00:06:58,630 --> 00:07:02,350 Ejaaz: Elon exercised that within day four, or actually day three. That was yesterday. 108 00:07:02,350 --> 00:07:03,080 Ejaaz: This happened yesterday. 109 00:07:03,410 --> 00:07:08,780 Ejaaz: So he just acted very quickly. And the reason for this is it's not just Cursor's 110 00:07:08,780 --> 00:07:12,410 Ejaaz: harness on its own. So for any of you who have used Cursor, it's probably the 111 00:07:12,410 --> 00:07:16,390 Ejaaz: first product that you interacted with to start Vibe coding different types of products. 112 00:07:16,630 --> 00:07:20,640 Ejaaz: It's the thing that arguably made Vibe coding a very viral thing. 113 00:07:20,640 --> 00:07:26,970 Ejaaz: At one point, Cursor, the product itself, accounted for 40% of Anthropix coding 114 00:07:26,970 --> 00:07:31,680 Ejaaz: usage for Claude specifically. This was before Claude code became like a viral sensation itself. 115 00:07:31,930 --> 00:07:35,620 Ejaaz: So Cursor at the time, I think, was making around 1 billion ARR, 116 00:07:35,620 --> 00:07:38,530 Ejaaz: and now it's like making between 2 to 3 billion ARR. 117 00:07:38,530 --> 00:07:42,730 Ejaaz: So a really good purchase. But the point is, Elon was able to acquire it using 118 00:07:42,730 --> 00:07:47,190 Ejaaz: stock at an inflated price, which effectively makes it free. Now, get this. 119 00:07:47,880 --> 00:07:53,550 Ejaaz: $60 billion that Elon just spent to acquire this AI company is more money than 120 00:07:53,870 --> 00:07:58,990 Ejaaz: Elon spent on SpaceX for rockets over its entire lifetime. 121 00:07:59,200 --> 00:08:03,420 Ejaaz: So SpaceX, the company that was built to create rockets and effectively become 122 00:08:03,420 --> 00:08:07,370 Ejaaz: the highway to space, just spent the most amount of money acquiring an AI lab. 123 00:08:07,370 --> 00:08:11,110 Ejaaz: Now, obviously, this makes sense because they merged with XAI. 124 00:08:11,310 --> 00:08:15,820 Ejaaz: The whole idea is to put data centers out in space to train Grok, 125 00:08:15,820 --> 00:08:18,080 Ejaaz: which is contained within XAI. 126 00:08:18,350 --> 00:08:22,710 Ejaaz: Cursor has an amazing product that basically allows Grok to become a super coding 127 00:08:22,710 --> 00:08:24,830 Ejaaz: model and allow it to compete with Anthropic. 128 00:08:25,020 --> 00:08:28,850 Ejaaz: They already proved this with the recent Composer 2.5 model, which Cursor released. 129 00:08:29,140 --> 00:08:33,570 Ejaaz: And Michael Truel, the founder of Cursor, actually spoke on a panel or on a 130 00:08:33,570 --> 00:08:35,070 Ejaaz: presentation yesterday where he said 131 00:08:35,510 --> 00:08:39,510 Ejaaz: they've actually trained a foundational model that is releasing in the next 132 00:08:39,510 --> 00:08:42,970 Ejaaz: few weeks that's been trained from scratch typically cursors models have been 133 00:08:42,970 --> 00:08:47,530 Ejaaz: fine-tuned on top of a chinese model but trained from scratch and that's definitely grok itself so 134 00:08:47,880 --> 00:08:52,210 Ejaaz: tldr space is going to come up with a frontier ai model after this acquisition 135 00:08:52,420 --> 00:08:54,290 Ejaaz: released in a few weeks so it is 136 00:08:54,790 --> 00:08:56,640 Ejaaz: a huge win to acquire a company 137 00:08:56,890 --> 00:08:59,810 Josh: Like this yeah and that's not even the most interesting thing about it like 138 00:08:59,950 --> 00:09:03,510 Josh: it's amazing how many different pillars that exist with this company and i think 139 00:09:03,510 --> 00:09:06,870 Josh: one of the things you mentioned was how much money they spent and how much money they raise. 140 00:09:07,020 --> 00:09:11,610 Josh: And I want to highlight a few key numbers with the cumulative spend versus the IPO raise. 141 00:09:11,870 --> 00:09:14,100 Josh: They raised $85 billion in this IPO. 142 00:09:14,350 --> 00:09:19,210 Josh: For reference, they spent $15 billion on the entire Starship program. 143 00:09:19,900 --> 00:09:23,270 Josh: When you think about the Starlink program that is running a global constellation 144 00:09:23,270 --> 00:09:26,220 Josh: of satellites that is beaming down internet to earth with lasers, 145 00:09:26,530 --> 00:09:28,230 Josh: they spent $20 billion on that. 146 00:09:28,230 --> 00:09:32,140 Josh: The total between Starship, which is the Martian rocket that's going to go build 147 00:09:32,140 --> 00:09:36,620 Josh: this base on moon, and Starlink, the global internet provider, is $35 billion. 148 00:09:36,940 --> 00:09:40,500 Josh: They raised almost triple that in money. 149 00:09:40,850 --> 00:09:44,050 Josh: And that means that the scale and the scope of what they're going after is just 150 00:09:44,050 --> 00:09:47,870 Josh: so huge. But before we get into the grand scheme of things, we have to talk 151 00:09:47,870 --> 00:09:49,990 Josh: about the price now because that's what everyone wants to know about. 152 00:09:49,990 --> 00:09:51,190 Josh: That's what all the interest is about. 153 00:09:51,600 --> 00:09:54,510 Josh: And I think to do that, we should start with the share float, 154 00:09:54,650 --> 00:09:58,380 Josh: which is an important thing that I'm not sure a lot of people have really kind 155 00:09:58,380 --> 00:10:02,050 Josh: of focused on or are really aware of. So basically, when a company is traded, 156 00:10:02,050 --> 00:10:05,580 Josh: there are a certain amount of shares that are available to be traded on a public marketplace. 157 00:10:05,860 --> 00:10:09,320 Josh: In the case of SpaceX, this number is actually very low. It comes out to about 158 00:10:09,320 --> 00:10:13,160 Josh: 4.2 to 4.3% of the total shares being actually tradable. 159 00:10:13,470 --> 00:10:16,090 Josh: What does this look like? Well, yesterday during the trading session, 160 00:10:16,310 --> 00:10:20,880 Josh: I think half 50% of all of the shares traded hands in a single trading session. 161 00:10:20,880 --> 00:10:24,280 Josh: There's not a lot of liquidity, or I shouldn't say that there's, 162 00:10:24,280 --> 00:10:27,240 Josh: there's a lot of liquidity, but there's not a lot of shares to be pushed around. 163 00:10:27,240 --> 00:10:30,720 Josh: Meaning if there is more demand, it is able to push the price higher, 164 00:10:30,720 --> 00:10:33,910 Josh: much quicker because there's less of that float that it needs to churn through. 165 00:10:34,230 --> 00:10:37,170 Josh: As a result, the stock has done very well and hasn't met much resistance. 166 00:10:37,170 --> 00:10:39,880 Josh: I mean, every day it's been seemingly up only. 167 00:10:40,520 --> 00:10:43,940 Josh: When does this change, is the question, because right now there's a very little 168 00:10:43,940 --> 00:10:48,190 Josh: amount. There's a lot of hype and demand, but there is a very clear and perhaps 169 00:10:48,190 --> 00:10:53,790 Josh: concerning unlock schedule in which that float is going to grow to be much larger than 4%. 170 00:10:54,130 --> 00:10:58,430 Ejaaz: Yeah. Listen, like I'm a SpaceX bull. I bought stock at IPO. 171 00:10:58,950 --> 00:11:02,190 Ejaaz: I will be holding this stock for a long time. I believe in Elon being able to 172 00:11:02,190 --> 00:11:05,790 Ejaaz: pull this off, but you can't ignore the mechanics. 173 00:11:06,230 --> 00:11:09,740 Ejaaz: Now, I have a visual on the screen right now. If you're listening to this, I'll explain it to you. 174 00:11:09,740 --> 00:11:15,190 Ejaaz: Right now, around 4.2% of the stock supply is available to trade. 175 00:11:15,190 --> 00:11:18,550 Ejaaz: So that's what is available on the market. That's why the price is so volatile 176 00:11:18,550 --> 00:11:21,440 Ejaaz: and is going either up or down, mainly up over the last few days. 177 00:11:21,860 --> 00:11:29,580 Ejaaz: Over the next 90 days, 4.4x, the entire current flow, so that's 2.4 billion 178 00:11:29,580 --> 00:11:33,960 Ejaaz: shares will get released onto the market in a staggered way. 179 00:11:33,960 --> 00:11:37,120 Ejaaz: And this releases from friends and family that invested earlier, 180 00:11:37,370 --> 00:11:41,590 Ejaaz: as well as early investors that such as funds or institutional funds that got 181 00:11:41,590 --> 00:11:44,510 Ejaaz: access to invest in SpaceX's earlier rounds. 182 00:11:44,830 --> 00:11:47,840 Ejaaz: Now, over 180 days, which is 183 00:11:47,840 --> 00:11:52,850 Ejaaz: basically six months, you'll have a total of 56% of the supply released. 184 00:11:53,040 --> 00:11:57,740 Ejaaz: So that is this year, by the end of this year, you have an additional 56% of 185 00:11:57,740 --> 00:11:59,260 Ejaaz: the current float that is being traded. 186 00:11:59,520 --> 00:12:05,890 Ejaaz: That is TLDR, a ton of And so the main question on everyone's mind is, 187 00:12:06,280 --> 00:12:07,760 Ejaaz: where's this money going to come from? 188 00:12:07,760 --> 00:12:13,180 Ejaaz: You need money to absorb that supply release in order to maintain the current 189 00:12:13,180 --> 00:12:13,980 Ejaaz: price that we're looking at. 190 00:12:13,980 --> 00:12:19,020 Ejaaz: So if we're looking at like, say, a $220 price per share, you're going to need 191 00:12:19,180 --> 00:12:23,740 Ejaaz: multiples more of the current money that is in the supply right now. 192 00:12:24,750 --> 00:12:28,950 Ejaaz: Just prop up that price, not even just send it higher. So the concern here is 193 00:12:29,160 --> 00:12:31,730 Ejaaz: this is a very abnormal unlock schedule. 194 00:12:31,730 --> 00:12:35,990 Ejaaz: This is not particularly normal. I'll show the step ladder over here. 195 00:12:35,990 --> 00:12:42,500 Ejaaz: Typically, when a company IPOs, they IPO around 40% to 50% of the available 196 00:12:42,500 --> 00:12:46,750 Ejaaz: supply, and then the rest unlocks after a one-year cliff. That's typically the 197 00:12:46,750 --> 00:12:47,870 Ejaaz: standard that everyone's shown. 198 00:12:48,140 --> 00:12:51,850 Ejaaz: With Elon's IPO, with the SpaceX IPO, everything has pretty much changed. 199 00:12:52,130 --> 00:12:56,140 Ejaaz: For the unlock schedule, it happens a lot sooner and a lot more frequently. 200 00:12:56,720 --> 00:12:59,950 Ejaaz: Equally on the buy side of things, and I think this is important to point out, 201 00:13:00,200 --> 00:13:03,130 Ejaaz: Elon has been able to wrangle a very effective, 202 00:13:04,040 --> 00:13:07,480 Ejaaz: call it a scheme, where you have a lot of the pension funds, 203 00:13:07,480 --> 00:13:12,030 Ejaaz: the S&P 500 purchases, the people that buy these indexes from pension funds 204 00:13:12,030 --> 00:13:17,830 Ejaaz: and other sort of instruments that will have this constant buying pressure on SpaceX's IPO. 205 00:13:17,830 --> 00:13:22,940 Ejaaz: So the balance of these two will effectively determine what that ultimate price is going to be. 206 00:13:23,210 --> 00:13:25,660 Ejaaz: But right now, it's looking pretty intimidating. 207 00:13:25,900 --> 00:13:29,160 Josh: Yeah, well, to say that it needs to absorb the sell pressure is implying that 208 00:13:29,160 --> 00:13:32,720 Josh: there will be sell pressure. And I think it's also important to know who the 209 00:13:32,720 --> 00:13:34,410 Josh: people are who are currently locked up. 210 00:13:34,850 --> 00:13:38,580 Josh: If your shares are locked up, you are an insider, you are early in SpaceX, you are in the green. 211 00:13:38,900 --> 00:13:42,220 Josh: So there's a high probability that there is some sort of incentive and urge 212 00:13:42,220 --> 00:13:44,100 Josh: to want to sell to take your money off the table. 213 00:13:44,310 --> 00:13:49,960 Josh: And by December 9th of this year, about 60% of all the shares will become available, 214 00:13:50,290 --> 00:13:55,300 Josh: with the remaining 50% or 40% being available in June of 2027. 215 00:13:55,600 --> 00:14:00,910 Josh: So there is a very clear projected path to a lot of potential sell pressure. 216 00:14:01,220 --> 00:14:03,680 Josh: Now, I think it's important to note the types of people that are invested in 217 00:14:03,680 --> 00:14:09,080 Josh: SpaceX and the people that share the vision of SpaceX being very bullish and very long term. 218 00:14:09,080 --> 00:14:12,940 Josh: A lot of these investors invested in Elon, the founder, they invested in SpaceX, 219 00:14:13,190 --> 00:14:17,600 Josh: the deca trillion dollar company, not the two to three trillion dollar company. 220 00:14:17,810 --> 00:14:20,230 Josh: So while there is going to be selling pressure, there's certainly a case to 221 00:14:20,230 --> 00:14:23,590 Josh: be made that a lot of these early supporters still believe that they're early 222 00:14:23,900 --> 00:14:27,710 Josh: and are using this as an option to just continue to hold to not sell so while 223 00:14:27,710 --> 00:14:31,370 Josh: there will be sell pressure it is not necessarily going to be 224 00:14:31,710 --> 00:14:36,420 Josh: a bad thing it is possible not necessarily and elon seems to be fueling this 225 00:14:36,420 --> 00:14:40,900 Josh: fire he just posted a few days ago that spacex might be able to reach approximately 226 00:14:41,160 --> 00:14:42,950 Josh: one trillion dollars in revenue, 227 00:14:43,470 --> 00:14:48,740 Josh: by 2030. And he would be surprised if it were not above $1 trillion by 2031. 228 00:14:49,060 --> 00:14:52,630 Josh: A trillion dollars in revenue is unheard of. 229 00:14:53,150 --> 00:14:56,530 Josh: No one makes a trillion dollars in revenue. If SpaceX just trades at 10 times 230 00:14:56,530 --> 00:15:01,150 Josh: their revenue, they're trading at a $10 trillion valuation. That gets you there in four years. 231 00:15:01,580 --> 00:15:05,600 Josh: So there is this very clear bull case based on these pillars that they have 232 00:15:05,600 --> 00:15:10,010 Josh: between Starlink and Starship and selling their AI compute and just owning their 233 00:15:10,010 --> 00:15:12,670 Josh: own AI infrastructure through the acquisition of cursor and through 234 00:15:12,940 --> 00:15:16,750 Josh: their data centers that they have that makes it incredibly compelling for people who 235 00:15:17,100 --> 00:15:20,660 Josh: maybe if you're investing over the next six months could be rocky but that like 236 00:15:20,660 --> 00:15:24,660 Josh: multi-year trajectory still seems to be like very optimistic and very bullish. 237 00:15:25,130 --> 00:15:31,020 Ejaaz: Yeah yes and no like i do want to try and like ground it a little bit which 238 00:15:31,020 --> 00:15:34,950 Ejaaz: is like okay like let's go back to this chart right effectively on like day 239 00:15:34,950 --> 00:15:39,770 Ejaaz: one you've got around like 3.7 billion dollars worth of sell pressure. 240 00:15:39,770 --> 00:15:42,670 Ejaaz: This is like after that initial 90-day period, right? 241 00:15:42,810 --> 00:15:45,970 Ejaaz: These guys, these early investors that you mentioned, I agree are long-term 242 00:15:45,970 --> 00:15:48,540 Ejaaz: holders, but they're also up over 100x. 243 00:15:48,780 --> 00:15:51,830 Ejaaz: If you're up over 100x, you're probably cashing some of this out. 244 00:15:51,830 --> 00:15:55,440 Ejaaz: Now, there are ways that they would cash this out. Maybe they don't sell the equity itself. 245 00:15:55,690 --> 00:15:59,050 Ejaaz: Maybe they borrow against it. There's loads of fancy ways to manage your wealth in that way. 246 00:15:59,050 --> 00:16:02,000 Ejaaz: And these people will probably exercise some version of that. 247 00:16:02,000 --> 00:16:06,100 Ejaaz: But I do think there will be some form of sell pressure. And then the main question, 248 00:16:06,100 --> 00:16:10,510 Ejaaz: therefore, on my mind is, is there enough hands to exchange that? 249 00:16:10,710 --> 00:16:12,570 Ejaaz: Now, initially, I think actually there will be. 250 00:16:13,090 --> 00:16:15,480 Ejaaz: I think there's a lot of retail demand for this thing. I think there was something 251 00:16:15,480 --> 00:16:22,120 Ejaaz: like $250 billion worth of purchasing power from retail alone, 252 00:16:22,120 --> 00:16:27,060 Ejaaz: just through the likes of Robinhood and all the retail trading accounts from banks on day one. 253 00:16:27,280 --> 00:16:30,270 Ejaaz: So there's that. And then there's also the constant buying pressure from 254 00:16:30,790 --> 00:16:35,160 Ejaaz: The institutions that buy S&P 500 indexes and stuff like that. 255 00:16:35,340 --> 00:16:40,320 Ejaaz: So I think it'll balance out eventually, but there is an abnormal amount of 256 00:16:40,320 --> 00:16:43,450 Ejaaz: potential selling pressure that will come from some of these early investors. 257 00:16:43,450 --> 00:16:46,140 Ejaaz: And I don't think it's as easy as saying like all of them are going to hold 258 00:16:46,390 --> 00:16:50,740 Ejaaz: when they're up like massively. So I just want to kind of like put that out 259 00:16:50,740 --> 00:16:55,140 Ejaaz: there. I'm not a bear in any way, but there are some contingency plans that 260 00:16:55,440 --> 00:16:56,850 Ejaaz: probably need to be made. 261 00:16:57,560 --> 00:17:01,030 Josh: Well, okay, that's fair. so in six months from now i guess we could look at 262 00:17:01,030 --> 00:17:04,300 Josh: this like there's two types of investors maybe we could address here the the 263 00:17:04,300 --> 00:17:07,270 Josh: shorter term traders that are looking to make money before the end of the year 264 00:17:07,480 --> 00:17:10,380 Josh: and then there's the longer term traders that are looking on a five to ten year, 265 00:17:10,920 --> 00:17:15,120 Josh: kind of scope so for the six month traders for the people that want to buy a 266 00:17:15,120 --> 00:17:20,400 Josh: really nice gift for christmas maybe buy a brand new performance tesla tax should they buy yeah yeah, 267 00:17:21,480 --> 00:17:24,690 Josh: should they buy spacex stock in order to get there do we think it's going to 268 00:17:24,690 --> 00:17:26,820 Josh: be a bullish a positive six months. 269 00:17:27,160 --> 00:17:32,050 Ejaaz: Yeah honestly i think there's so much demand for this thing that people will 270 00:17:32,050 --> 00:17:36,200 Ejaaz: just buy it anyway, because the people that are buying it now are probably there 271 00:17:36,200 --> 00:17:38,810 Ejaaz: for the long term, they know that they weren't able to get involved in like 272 00:17:38,810 --> 00:17:39,660 Ejaaz: some of the private deals. 273 00:17:40,460 --> 00:17:43,320 Ejaaz: I also think people are going to be staring at the unlock schedules. 274 00:17:43,600 --> 00:17:47,470 Ejaaz: And they're going to think, hmm, okay, I've got until this time until this amount 275 00:17:47,470 --> 00:17:49,970 Ejaaz: unlocks, I'll play the game up until there. 276 00:17:49,970 --> 00:17:52,730 Ejaaz: So I think more of the short term minded things that maybe want to make a trade 277 00:17:52,730 --> 00:17:57,470 Ejaaz: and like, be able to afford a Tesla by buying SpaceX stock probably have a good odds of doing that. 278 00:17:57,470 --> 00:18:00,610 Josh: And then you have to assume that the unlock schedule may get front run. 279 00:18:00,610 --> 00:18:02,780 Josh: People are all aware of it. Everyone's watching these dates. 280 00:18:03,240 --> 00:18:05,780 Josh: It's going to be an interesting game theory dynamic applied to that, 281 00:18:06,180 --> 00:18:09,560 Josh: but it seems like things are pretty stable. I mean, this is very expensive. 282 00:18:09,750 --> 00:18:13,470 Josh: I could very easily see a world in which it trades somewhat near the IPO price, 283 00:18:13,470 --> 00:18:16,790 Josh: like sub 200 for, for a while, while it just kind of clears through insurance 284 00:18:16,790 --> 00:18:21,510 Josh: that, but the longer term, like someone who wants to own this through 2030, 285 00:18:21,770 --> 00:18:24,180 Josh: say for the next four years, what do you think about that? 286 00:18:24,550 --> 00:18:27,660 Ejaaz: Oh i mean it's the same thesis that i would have with my investment which is 287 00:18:27,660 --> 00:18:30,420 Ejaaz: like i think overall spacex will be up but again 288 00:18:30,780 --> 00:18:35,220 Ejaaz: it it not everyone can hold through volatility right like if you see if you're 289 00:18:35,220 --> 00:18:39,300 Ejaaz: an amazon holder right let's let's take the company that spacex literally just 290 00:18:39,300 --> 00:18:41,630 Ejaaz: surpassed on day two right um 291 00:18:42,790 --> 00:18:45,840 Ejaaz: if you've been holding it for the last three years you've been in utter hell 292 00:18:45,960 --> 00:18:49,650 Ejaaz: right uh but the idea is if you look at amazon's fundamentals it is absolutely 293 00:18:49,650 --> 00:18:51,480 Ejaaz: killing it way more than SpaceX, right? 294 00:18:51,480 --> 00:18:55,560 Ejaaz: I mentioned earlier, $700 billion last year in revenue, and they made about 295 00:18:55,560 --> 00:18:59,630 Ejaaz: $80 billion of actual profit off of that. SpaceX comparably made a fraction 296 00:18:59,630 --> 00:19:01,760 Ejaaz: of that and had a net loss, right? 297 00:19:01,950 --> 00:19:05,860 Ejaaz: So the fundamentals don't really make sense, but the people who held Amazon 298 00:19:06,100 --> 00:19:08,860 Ejaaz: is currently down more than the people who bought SpaceX on day one. 299 00:19:08,860 --> 00:19:14,080 Ejaaz: So that kind of dichotomy is kind of crazy to understand. And maybe it's just 300 00:19:14,080 --> 00:19:17,910 Ejaaz: up to market dynamics and public interpretation. 301 00:19:18,220 --> 00:19:20,590 Ejaaz: But that being said, if you're on a long term, if you're looking at fundamentals, 302 00:19:20,590 --> 00:19:24,720 Ejaaz: if you believe that SpaceX will bring the cost of traveling out to space to 303 00:19:24,720 --> 00:19:27,910 Ejaaz: 200K per launch, then it's an easy bet. It's a long-term hold. 304 00:19:28,250 --> 00:19:30,030 Ejaaz: But it's whether you can handle the volatility. 305 00:19:30,200 --> 00:19:32,330 Josh: That's the main thing. That's kind of the advice that I've been giving to friends. 306 00:19:32,330 --> 00:19:33,940 Josh: A lot of people have been reaching out and asking like, hey, 307 00:19:33,940 --> 00:19:37,170 Josh: what do you think about SpaceX stock? And I tell them, if you are comfortable... 308 00:19:37,680 --> 00:19:41,220 Josh: Investing long-term and just putting your money away and slowly building a position 309 00:19:41,220 --> 00:19:43,440 Josh: or quickly building a position in a company that you believe in, 310 00:19:43,740 --> 00:19:46,600 Josh: then it's a great investment, a remarkable investment even. 311 00:19:46,600 --> 00:19:50,690 Josh: Because I mean, companies at the scale continue to do pretty well. 312 00:19:50,690 --> 00:19:53,540 Josh: And when you think about the companies at the scale and who they're run by, 313 00:19:53,540 --> 00:19:56,450 Josh: there's, there's none with the more cracked engineering team, 314 00:19:56,450 --> 00:19:59,940 Josh: leadership team, entrepreneurship team, then SpaceX. When you look at these 315 00:19:59,940 --> 00:20:01,710 Josh: top five, it's like Microsoft. 316 00:20:02,410 --> 00:20:05,350 Josh: Are you really more bullish on Microsoft than SpaceX, even though they're priced 317 00:20:05,350 --> 00:20:07,410 Josh: the same? Like when you look at Microsoft, what they're working on. 318 00:20:07,690 --> 00:20:09,350 Ejaaz: Like Boomer Tech, Josh, you know this now. 319 00:20:09,350 --> 00:20:13,670 Josh: Yeah, it's like, really when you look at these companies, which companies are 320 00:20:13,670 --> 00:20:16,170 Josh: going to change the world five years from now and which companies are not? 321 00:20:16,490 --> 00:20:20,710 Josh: And if I'm just comparing based on market caps, the answer is certainly not 322 00:20:20,710 --> 00:20:24,030 Josh: Microsoft. It looks a lot more like SpaceX. And there's a chart that I wanted to show. 323 00:20:24,270 --> 00:20:26,710 Josh: It looks a little funky on the screen share. You're gonna have to work with me here. 324 00:20:26,980 --> 00:20:30,260 Josh: But basically there is this presentation by this guy named Thomas LaFont. He's an investor. 325 00:20:30,500 --> 00:20:34,230 Josh: I saw this on the All In podcast where he was talking about the probability 326 00:20:34,230 --> 00:20:38,290 Josh: of a company continuing to do well once they reach a certain valuation. 327 00:20:38,290 --> 00:20:43,340 Josh: So in the case of a unicorn, the odds of a unicorn going from a $1 billion company 328 00:20:43,340 --> 00:20:46,300 Josh: to a decacorn, a $10 billion company is 8%. 329 00:20:46,530 --> 00:20:48,670 Josh: It's possible, but not probable. 330 00:20:49,260 --> 00:20:53,310 Josh: The same doubles in the case that a decacorn goes to a centacorn. 331 00:20:53,310 --> 00:20:58,600 Josh: So if a company is worth $10 billion, the odds of it going to $100 billion, a 10x multiple. 332 00:20:59,220 --> 00:21:04,870 Josh: Go from 8% to 13%. And then from Decacorn, which is 10 billion to a hundred 333 00:21:04,870 --> 00:21:08,980 Josh: billion, Ascenticorn, they almost triple and 30%. 334 00:21:08,980 --> 00:21:14,130 Josh: So one in three companies who reach $10 billion will make it to a hundred billion 335 00:21:14,130 --> 00:21:17,740 Josh: dollars. And you could see how this chart kind of trends in a very clear trajectory 336 00:21:17,740 --> 00:21:18,790 Josh: where it's nearly exponential. 337 00:21:19,010 --> 00:21:22,790 Josh: And you have to assume if a company can reach a trillion dollars in market cap, 338 00:21:23,120 --> 00:21:28,060 Josh: the probability of it hitting a decatrillion dollars is probably double it's 339 00:21:28,060 --> 00:21:31,820 Josh: at least 60 so that means over one in every two companies that have hit 340 00:21:32,100 --> 00:21:36,100 Josh: one trillion dollars in value are likely to hit 10 trillion dollars in value 341 00:21:36,340 --> 00:21:39,850 Josh: and when you look at the companies that are centicorns today is that what they're called like 342 00:21:40,250 --> 00:21:43,670 Josh: trillion dollar companies there's not a ton of them and when you look at the 343 00:21:43,670 --> 00:21:46,940 Josh: ones that do exist the ones that are most interesting that are most compelling 344 00:21:46,940 --> 00:21:48,200 Josh: to look forward to in terms of 345 00:21:48,540 --> 00:21:51,450 Josh: products that they're going to make are companies like spacex are companies 346 00:21:51,450 --> 00:21:55,100 Josh: like tesla who are going to revolutionize what the physical world looks like 347 00:21:55,100 --> 00:21:56,220 Josh: in a way that we've never seen before. 348 00:21:56,380 --> 00:21:59,120 Josh: And that's why I'm particularly excited. That's why I am recommending to my 349 00:21:59,120 --> 00:22:02,080 Josh: friends like, hey, not financial advice, but I'm very bullish. 350 00:22:02,210 --> 00:22:05,870 Josh: I'm all in on this company for the next, however, pretty much an infinite amount 351 00:22:05,870 --> 00:22:07,020 Josh: of time until things change. 352 00:22:07,290 --> 00:22:10,420 Josh: And that's kind of the reasoning is there's just a high probability that the 353 00:22:10,420 --> 00:22:11,780 Josh: success they've had will continue. 354 00:22:12,200 --> 00:22:14,290 Ejaaz: I think with a lot of these companies, it's also 355 00:22:14,840 --> 00:22:20,440 Ejaaz: So it's just time-based, and it's based on whether they're going to execute on the entire vision. 356 00:22:20,440 --> 00:22:24,930 Ejaaz: Like, a lot of us don't actually accurately predict what the world's going to 357 00:22:24,930 --> 00:22:26,070 Ejaaz: look like six months from now. 358 00:22:26,070 --> 00:22:29,450 Ejaaz: Like, who knows? Like, we could have AI models that cost a fraction of what 359 00:22:29,450 --> 00:22:33,480 Ejaaz: they do today that are frontier that would undercut Anthropic and OpenAI and 360 00:22:33,480 --> 00:22:36,850 Ejaaz: would kind of blow this entire AI bubble up. There's so many different moving factors. 361 00:22:37,220 --> 00:22:41,620 Ejaaz: Now, with Elon specifically, and I'm talking about Elon and his company, 362 00:22:41,620 --> 00:22:43,710 Ejaaz: so not just SpaceX, but we're talking about Tesla, 363 00:22:44,050 --> 00:22:49,510 Ejaaz: they have a huge collective vision to not only build out the number one AI company 364 00:22:49,510 --> 00:22:54,360 Ejaaz: and AI model, but to also own the infrastructure and highway to space, as well as the 365 00:22:54,860 --> 00:22:58,260 Ejaaz: world's largest gigafab chip fab on earth, 366 00:22:58,970 --> 00:23:02,750 Ejaaz: as well as manage all the humanoid robotic side of things as well, 367 00:23:02,750 --> 00:23:04,530 Ejaaz: the physical manifestation of AI. 368 00:23:04,780 --> 00:23:09,850 Ejaaz: Now, those are kind of vaguely the correct ambitions to kind of carve out what 369 00:23:09,850 --> 00:23:11,420 Ejaaz: the world's going to look like in the future. 370 00:23:11,710 --> 00:23:15,380 Ejaaz: Now, can one man pull it off between two or three companies? 371 00:23:15,740 --> 00:23:19,510 Ejaaz: That remains to be seen. His track record so far has proven that he is able 372 00:23:19,510 --> 00:23:21,090 Ejaaz: to scale hardware from zero to one. 373 00:23:21,360 --> 00:23:25,410 Ejaaz: He has yet to prove it with software specifically. And this cursor acquisition, 374 00:23:25,410 --> 00:23:27,140 Ejaaz: I believe, is going to be a good test of that. 375 00:23:27,960 --> 00:23:31,040 Ejaaz: And then following that, it's whether he is able to merge all of these together. 376 00:23:31,290 --> 00:23:35,060 Ejaaz: A lot of that is going to be based on time. And so unfortunately or fortunately, 377 00:23:35,060 --> 00:23:39,010 Ejaaz: a lot of this is going to be speculation. It's going to be hearsay until we actually see the goods. 378 00:23:39,170 --> 00:23:43,030 Ejaaz: And we're not going to see some of the goods until as early as maybe a few weeks 379 00:23:43,030 --> 00:23:47,290 Ejaaz: for the new crop model, but a few years in terms of space travel, 380 00:23:47,290 --> 00:23:51,260 Ejaaz: putting AI data centers in space, and training frontier models for a fraction of the cost. 381 00:23:51,260 --> 00:23:55,030 Ejaaz: So it's going to be a time thing. If you're patient, if you're a long-term investor, 382 00:23:55,030 --> 00:23:59,040 Ejaaz: then buying SpaceX stock at any price right now kind of makes sense. 383 00:23:59,380 --> 00:24:01,240 Ejaaz: But if you want to 384 00:24:01,860 --> 00:24:04,640 Ejaaz: I'm not again, not investment advice, but the way that I would kind of like 385 00:24:04,640 --> 00:24:08,690 Ejaaz: approach this is just kind of like purchasing chunks over time over the next 386 00:24:08,690 --> 00:24:13,760 Ejaaz: six months, there will be again, 54% of the supply to 54 to 60% of the supply 387 00:24:13,760 --> 00:24:15,410 Ejaaz: unlocked by the end of the year. 388 00:24:15,410 --> 00:24:17,740 Ejaaz: That's a lot of supply, there'll be a lot of volatility. 389 00:24:18,000 --> 00:24:22,240 Ejaaz: Right now we've seen the volatility go up for the price, but it'll equally go 390 00:24:22,240 --> 00:24:26,130 Ejaaz: down as well is my expectation. So just be careful out there and you know, 391 00:24:26,130 --> 00:24:27,620 Ejaaz: make sound decisions. That's it. 392 00:24:27,620 --> 00:24:32,140 Josh: Yeah, I'm gonna be hyperbolic again, like I have been and just continue to say 393 00:24:32,140 --> 00:24:35,190 Josh: that Tesla and SpaceX will be the most valuable company in the world. 394 00:24:35,290 --> 00:24:37,780 Josh: It's like, I'm looking at this list right now and there's NVIDIA, 395 00:24:37,780 --> 00:24:43,200 Josh: Google, Apple, Microsoft, Amazon, SpaceX, TSMC, Broadcom, Saudi Aramco, Samsung, and Tesla. 396 00:24:43,460 --> 00:24:45,720 Josh: And when you think about those companies and the products they're going to make 397 00:24:45,720 --> 00:24:49,080 Josh: and the future trajectory of them, none of them are even close to one, 398 00:24:49,080 --> 00:24:52,190 Josh: the operational capability in the terms of like physical hardware. 399 00:24:52,380 --> 00:24:54,700 Josh: And then two, just in terms of leadership and what the people have actually 400 00:24:54,700 --> 00:24:55,600 Josh: been able to accomplish. 401 00:24:55,910 --> 00:24:59,330 Josh: And when you consider a world in which SpaceX and Tesla get rolled into a single 402 00:24:59,330 --> 00:25:02,980 Josh: entity, and those are competing against NVIDIA, who's currently the most valuable 403 00:25:02,980 --> 00:25:06,200 Josh: company in the world, it's like, come on, there's, it's like not even close. 404 00:25:06,460 --> 00:25:10,020 Josh: And a $10 trillion valuation in that world seems bearish. 405 00:25:10,200 --> 00:25:13,270 Josh: I'm like, 10 trillion? Dude, they're going to hit a trillion dollars in revenue 406 00:25:13,270 --> 00:25:16,120 Josh: just with one of those two companies four years from now. 407 00:25:16,380 --> 00:25:19,160 Josh: If it's trading at 100 times the revenue, that's like, I mean, 408 00:25:19,160 --> 00:25:20,510 Josh: the numbers get pretty large really quick. 409 00:25:20,700 --> 00:25:24,370 Josh: And I think this is an important thing to note that this has happened many times 410 00:25:24,370 --> 00:25:26,890 Josh: in the past. I mentioned Saudi Aramco currently sitting at number nine. 411 00:25:27,080 --> 00:25:30,070 Josh: At one point in time, it was the most valuable company in the world by far. 412 00:25:30,380 --> 00:25:33,270 Josh: And that was the ceiling of the perceived market caps that a company could reach. 413 00:25:33,910 --> 00:25:36,810 Josh: It's like, okay, Saudi Aramco is number one. Let's say Apple, 414 00:25:36,810 --> 00:25:40,160 Josh: for example, surely Apple can't be worth more than Saudi Aramco. 415 00:25:40,160 --> 00:25:42,350 Josh: They make oil, they power all the energy of the world. 416 00:25:42,680 --> 00:25:46,090 Josh: The reality is that Apple released the iPhone, Apple became the new most valuable 417 00:25:46,090 --> 00:25:48,900 Josh: company in the world, and they quadrupled Saudi Aramco. 418 00:25:49,120 --> 00:25:52,610 Josh: And the perceived ceiling of what these companies are able to reach in terms 419 00:25:52,610 --> 00:25:57,060 Josh: of market cap continues to go up as they continue to unlock new value in the world. 420 00:25:57,710 --> 00:26:01,490 Josh: And what company is more likely to unlock more value than one that is exploring 421 00:26:01,490 --> 00:26:04,630 Josh: both domestically, but also interstellarly? 422 00:26:04,630 --> 00:26:07,250 Josh: And I know it's just it's an exciting company to bet around. 423 00:26:07,570 --> 00:26:12,110 Josh: There is an incredibly compelling case for a really fun and very valuable future 424 00:26:12,400 --> 00:26:13,370 Josh: when these plans work out. 425 00:26:13,680 --> 00:26:16,750 Josh: And there's no team better equipped to actually execute on that vision. 426 00:26:16,750 --> 00:26:20,660 Josh: And that's why I cannot recommend SpaceX enough to all of my friends. 427 00:26:20,660 --> 00:26:23,170 Josh: Again, not financial advice, but like, holy shit, this is the best chance you 428 00:26:23,170 --> 00:26:29,110 Josh: have as we go into this like next generation of just like humanity in general 429 00:26:29,110 --> 00:26:31,750 Josh: reality. It's very exciting. Clearly, I'm excited. Clearly, I'm a big fan. 430 00:26:31,890 --> 00:26:34,100 Josh: I'm sure people disagree with a lot of these takes, but hey, 431 00:26:34,330 --> 00:26:35,550 Josh: come catch me in five years, buddy. 432 00:26:36,160 --> 00:26:40,270 Ejaaz: Yeah, I mean, I'm going to take not the other side of that, but I'm just going 433 00:26:40,270 --> 00:26:44,950 Ejaaz: to point out that there are names on this chart that haven't IPO'd yet. 434 00:26:44,950 --> 00:26:47,770 Ejaaz: You're going to have Anthropic. I see OpenAI is on here, but you're going to 435 00:26:47,770 --> 00:26:50,680 Ejaaz: have a ton of other Frontier AI labs that IPO soon. 436 00:26:50,980 --> 00:26:54,480 Ejaaz: Google is nowhere to be seen here, and they are currently the only vertically 437 00:26:54,480 --> 00:26:58,430 Ejaaz: integrated company that absolutely nailed distribution and the infrastructure 438 00:26:58,430 --> 00:27:00,390 Ejaaz: play itself. I think that is very slept on. 439 00:27:00,700 --> 00:27:03,840 Ejaaz: And then NVIDIA itself, I think a lot of people are counting NVIDIA as just 440 00:27:03,840 --> 00:27:07,770 Ejaaz: the GPU company, but hey, Jensen's already released his CPU line, 441 00:27:07,770 --> 00:27:10,340 Ejaaz: which he said he was never going to enter, and now he has, and now it's earning 442 00:27:10,340 --> 00:27:12,250 Ejaaz: $20 billion of revenue a year. 443 00:27:12,530 --> 00:27:18,370 Ejaaz: He's already working on the battle-tested, space-proof GPUs that he's going 444 00:27:18,370 --> 00:27:21,610 Ejaaz: to be putting in Elon's rockets to get out there. So I think there's going to 445 00:27:21,610 --> 00:27:22,980 Ejaaz: be some competitors in the future. 446 00:27:23,450 --> 00:27:28,900 Ejaaz: And it's just a matter of keeping an eye of what is going on and how it's all being executed. 447 00:27:29,240 --> 00:27:32,390 Ejaaz: Again, I think Elon is one of the best executors in the world right now. 448 00:27:32,390 --> 00:27:34,190 Ejaaz: So very bullish for all his companies. 449 00:27:34,490 --> 00:27:37,550 Ejaaz: But there'll be some competition. I don't think it'll be a clear road. 450 00:27:37,550 --> 00:27:39,350 Ejaaz: But ultimately, up only, I think. 451 00:27:39,350 --> 00:27:42,520 Josh: Yeah, well, I mean, definitely no competition in space. Blue Origin is the next 452 00:27:42,520 --> 00:27:46,410 Josh: closest. And they got a decade of cash enough to do, especially after that most recent rocket blew up. 453 00:27:46,770 --> 00:27:49,510 Josh: So in that world, at least they got their monopoly for a good bit of time. 454 00:27:49,510 --> 00:27:53,100 Josh: But I think that the consensus is generally like all of these companies are pretty remarkable. 455 00:27:53,270 --> 00:27:56,350 Josh: Like when you look at NVIDIA, Google, Apple, like there's a very clear case 456 00:27:56,350 --> 00:28:01,100 Josh: that they're going to continue to make more money as this world of abundance gets unlocked with AI. 457 00:28:01,440 --> 00:28:04,520 Josh: And there's a good chance that everything just continues to go up. 458 00:28:04,670 --> 00:28:08,930 Josh: And maybe there's certainly going to be some bumps along the way. 459 00:28:09,230 --> 00:28:12,320 Josh: But the value generation created by these companies is really staggering. 460 00:28:12,320 --> 00:28:13,120 Josh: So I think that's the update. 461 00:28:13,280 --> 00:28:17,880 Josh: That is the post SpaceX IPO clarity, perhaps. I'm serious. 462 00:28:18,080 --> 00:28:20,930 Josh: That's everything that's worth knowing. That's everything... 463 00:28:21,470 --> 00:28:22,580 Josh: I think that's been going on in 464 00:28:22,580 --> 00:28:25,690 Josh: the last week. Is there any final updates before we let everyone go here? 465 00:28:25,800 --> 00:28:28,770 Ejaaz: No, I'm excited about the new Grok model. 466 00:28:29,530 --> 00:28:33,820 Ejaaz: You know, speaking transparently, Grok has kind of fallen behind pretty massively. 467 00:28:34,130 --> 00:28:38,540 Ejaaz: And I believe like Anthropoc and OpenAI have pretty much reached escape velocity 468 00:28:38,540 --> 00:28:42,250 Ejaaz: with Fable 5 and the upcoming GPT 5.6 model. 469 00:28:42,600 --> 00:28:45,850 Ejaaz: Oh, I hope that comes soon. I know. And these models are effectively building 470 00:28:45,850 --> 00:28:49,110 Ejaaz: themselves. So once you have a model that builds itself, you know, 471 00:28:49,730 --> 00:28:52,060 Ejaaz: you kind of like run away with it. you run away with the trophy. 472 00:28:52,920 --> 00:28:57,280 Ejaaz: Grok is probably, or SpaceX AI, is probably the only company left that could 473 00:28:57,280 --> 00:28:58,720 Ejaaz: potentially join the ranks. 474 00:28:59,020 --> 00:29:01,950 Ejaaz: And they're going to do it via the curse acquisition. So I'm excited to try that model out. 475 00:29:02,260 --> 00:29:07,150 Ejaaz: For those of you who are listening to this, to Josh's relentless bullishness, 476 00:29:07,460 --> 00:29:10,510 Ejaaz: to my sobriety test, are we wrong? 477 00:29:10,660 --> 00:29:11,240 Josh: Who's wrong? 478 00:29:11,240 --> 00:29:14,770 Ejaaz: Who's right here? Come at us. Let's hear you in the comments. 479 00:29:15,090 --> 00:29:18,470 Ejaaz: Tell us if we're wrong. 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And we will see you for our roundup. 490 00:29:54,010 --> 00:29:56,040 Josh: See you guys so much for watching. We'll see you guys next time. See you.