SpaceX uh of course this seems like a

hundred years ago officially public and

as uh one Scott Galloway predicted it

did indeed close up on its first day of

trading and you had said it was going to

be about 20% and not more which is

interesting. It was at 19 something%.

Shares are at a high of 177 at the time

of this taping after the company's

public debut on Friday making the

current market cap 2.32 trillion. You

thought it might be a scooch under under

two. um his first day on the market.

Over 500 million shares traded hands. A

lot of movement here. Um Elon himself of

course crossed the milestone thanks to

the pot becoming the world's first

trillionaire. There were some notable

buyers. Gina Reinhardt, Australia's

richest person bought over a billion

dollar stake in the company and Kathy

Woods Arc Investment bought more than

$500 million worth of stock. So go

through if there's anything surprising

there because uh venture and also

venture funding for US space technology

firms excluding SpaceX jumps $7.5

billion in 2025 from 2.5 billion the

previous years probably we'll see if

that goes anywhere because it's a that's

also a money can be a money furnace u as

you the word you use but any thoughts on

where it is right now

>> I thought that the bankers and and Musk

and look I I think the most significant

thing here is that this we've never seen

such engineered manufactured scarcity.

There was tens of billions of dollars of

demand for this IPO that has never

existed for an IPO before. And then you

combine it with the fact that unlike

other IPOs that went public on the

NASDAQ, it didn't have to float more

than 10%. It only floated 5%.

>> Yeah. Very scarcity as you said.

>> So you've just created manufacturer

scarcity. Now to be fair, it's up again

today. So this has created a level of

excitement in the market. I do think you

you have to highlight the positives here

and that is I never want to be someone

that demonizes success. There are 14 new

billionaires in Texas that you've never

heard of. Those people will give money

away. They will start new businesses.

Something that's uniquely American is

that we continue to produce companies

like this and entrepreneurs like Elon

Musk. It's going to create a lot of

economic growth. You're going to see a

surge in philanthropy from Berkeley to

the University of Texas. It inspires a

lot of people. I it is there's a lot of

positives here and we're seeing venture

funding increasing in you know space

related um projects. So there there's

there's a a lot to like here. You know,

I don't like the manufactured scarcity

and the what I'll call the overlying

narrative of sort of like the hero's

journey here.

>> And the numbers at certain businesses

are not great.

>> Yeah. Look, this from a valuation

standpoint, and this is this is what

Musk has always been able to do is to

create this this uh narrative over

numbers that's like no one else in

history. Um so but right now the stock

is trading 30% above the IPO price. Um

and then he has also again and I'm I go

back to governance there's all these

different lockups like if you trade on a

certain platform and you bought shares

through direct share purchase on a

certain platform they technically don't

have a lockup but but they if they sell

their shares they can't trade on the

platform before which is like a soft

lock up. there's certain uh criteria

around when you can sell if the stock is

up a certain amount etc. To be fair,

Elon's locked himself up. I doubt he's

planning to sell. He'll just borrow

against his stock. But what they've

effectively done, what you're not

supposed to do, is they've created

different class of classes of shares,

which you're not supposed to do. So

again, I find that this is this is

really inspiring and important and going

to be great for economic growth on

certain levels. I also believe that this

entire sector is going to have not a

collapse but a pretty serious draw down

when people after two or three earnings

calls are forced to justify anything

resembling a future that involves the

kind of earnings built into this thing

>> right

>> and then the rush to space technology

firm same thing they're going to

overinvest which is normal like I would

assume presumably

>> and that and quite frankly that's one of

the great things about America because

we overinvested in the internet and the

technology survived and a lot of those

companies came back and that investment

was good but you didn't want to

one of the one of the investors

overinvesting initially.com. Yeah.

>> Yeah. So, but I said somebody called me

and I said this on pivot. Someone called

me and said I I have allocation. Should

I take it? And I said take it and trade

out on the first trade.

>> If you buy it and trade out, you don't

do as most people don't do as well

except in certain cases, right? It's

there were all these like really

interesting statistics of buying and

selling um that were not good in the

long run over over time. It's just you

got to hit the exact right one or you

lose mo money most of the time.

>> This was different because so first off

uh trading out trading out you you get

short-term capital gains at a higher

rate. So there's a lot of evidence that

shows that just generally with investing

you're better off just buying and trying

to never sell. It's just trading trading

is a difficult is a difficult game. I

thought and I said this I said they are

going to manufacture a 20% pop. The

bankers exactly

>> and everyone are figuring out a way to

create a supply demand imbalance that

will exactly peg this at a 20% pop.

What's impressive and punctures that

theory is that it's up another 11%

today. And the thing that also just the

thing that deserves a nod is the best VC

in the world is not Andre Horowitz or

whoever initially funded SpaceX. How

>> respond? Well, it's in my opinion, it's

Uncle Sam and that SpaceX investors and

the banks taking SpaceX public should

remember

>> that we would not be here today without

grants from the federal government. In

2008, SpaceX was on the verge of

bankruptcy

>> and would likely have run out of money

if not for a grant from NASA.

>> Yep.

>> And the golden law,

>> same thing with Tesla.

>> And then the golden law of stupidity

here, Trump is trying to cut NASA's

funding by more than 20% this year.

>> Same with mRNA technology. Same with the

government is one of the greatest

investors of all time if you could think

about it that way. best VC in history,

whether it's medical research for our

universities or electric charging

stations would you know and they would

argue back well they're going to get

their bite they're going to get enormous

return through tax revenues

>> possibly

>> the the big debate this will will stir

is in America we've been talking about

for decades now what's dominated the

conversation is how you create wealth

the conversation that is superseding

that is what you should do with wealth

once you have it. And so right now Elon

Musk could buy all of Manhattan, every

building, every condo, every park with

his that's how much money he has right

now. And whether or not this level of

concentration of power which comes in a

capitalist society for money

presents a risk. And I'm of the mind

that I think it's important that

eventually and I I'm in favor of of

eventually having trillionaires, but we

should have guard rails over the power

and progressive taxation, which we don't

have right now.

>> Can I just say one thing I want to push

back on, and that you've created all

these rich people are going to give to

charity. If you look at the statistics,

I don't think they're going to be

charitable. I don't think they're going

to do good things. I just don't I don't

think this class I don't think Elon Musk

has had a very good record. So, I just I

I'm not expecting these people to be I

think they're going to be on an ongoing

quest for more money and more power and

more consolidation. So, I'm not

impressed with their charitable uh

thoughts. And I'm I'm glad they're

creating jobs, but they would

immediately cut you if they had to.

That's I just don't think they have that

in them.

>> You're talking about Okay. But I I think

we need to parse that. And that is if

you look at billionaires and their

wives, the wives have hands down been

more philanthropic.

And it doesn't and and the the quote

unquote billionaire masters of the

universe have not acquitted themselves

well on a lot of levels.

But there's just no doubt this type of

wealth creation event is going to result

in a surge in philanthropy. It just

does. That would be great

>> because you're going to have a lot of

people who wake up and have $20 million

and think, I'm going to give 2 million

bucks to the local food bank or I'm

going to give 50,000. I I talked to, you

know, I'm I'm involved with the

University of California. They're all

revising their giving goals up for next

year because of the IPOs coming down the

and they have so many alumni.

I'm not talking about Elon Musk. I think

it would be you could you could make a

credible argument that he's not the most

philanthropic person. I get that and you

can definitely make an argument that

Mackenzie Scott and Melinda French Gates

are more philanthropic than their

husbands. But when you see these types

of liquidity events, local

philanthropies surge in terms of in

terms of uh uh money. There's look

there's for all of SpaceX's problems and

income inequality, there isn't a nation

on Earth that wouldn't kill to have

those problems.

I I would agree. I just think it's going

to go into political activism in a way

that could be deletarious to most of us.

That's

>> that's where it's going. It's not going

to helping a kid.

>> Let's be clear.

>> Elon Musk, in my view, can probably

decide who the next president is.

>> Yeah, that's correct.

>> He spent $250 million

and had influence on the election. Maybe

he didn't decide it, but he had

influence on it. He thinks what happens

if he decides to put 2.5% of his net

worth or 25 billion or 100 times what he

spent

>> last time.

>> Yeah, he's a freight train.

>> And also to be to be fair, are we

comfortable and I he deserves credit.

One of the one of the things that

doesn't get he doesn't get enough credit

for is he has turned off Starlink for

Russia and it is it has put Russia at a

severe disadvantage to Ukraine. And I

think that is a wonderful thing and he

deserves credit for it. Having said

that,

>> he changes his mind.

>> Well, that's exactly right. Having said

that, is should that power reside in a

private citizen that has no government

or electoral oversight?

>> No, it's not.

>> But look, it's a ton of economic growth.

The banks made a ton of money. You

have a lot of people. 4,000 people

became millionaires on Friday.

>> I get it. I hope they're better better

at it. I just think I'm not even Musk is

one thing, but I'm worried about others

that aren't quite so broad. I just like

I always whenever I see a box, I think

the Ulain's the Eul I N E. I don't know

how to pronounce it, but they're like

huge givers to crazy right-wing causes.

And so I just am like, "Oh god, the

boxes, the this, the that." Anyway, I I

just hope that they um that they

>> the Citizens United problem. I hope that

they're charitable. That's that's what I

hope.