When SpaceX goes public this Friday,

June 12th, it might very well go down in

history as the greatest ever. Here are

four reasons why. First, this is shaping

up to be the largest IPO in history.

SpaceX has officially launched its road

show, targeting roughly 74.4 billion in

proceeds at $135 per share, implying a

valuation around $1.75 trillion. That's

not just bigger than most IPOs, it's an

entirely different league. Second,

demand appears extraordinary. JP Morgan

CEO Jaime Diamond is personally helping

promote the IPO to wealthy clients. This

despite his long and complicated history

with Elon Musk. At the same time, SpaceX

is reportedly pushing banks for some of

the lowest underwriting fees ever seen

for a mega IPO, reflecting just how much

leverage the company has. Third, unlike

most IPOs, SpaceX isn't raising money to

survive. It's raising money to

accelerate. The filing shows proceeds

will be used to expand AI compute

infrastructure, launch capacity,

satellite constellations, and future

growth initiatives. In other words,

investors aren't funding a company

trying to find product market fit.

They're funding a company trying to

scale what may already be the

infrastructure backbone of the future.

And finally, the growth engines are

getting bigger, not smaller. Star Mobile

is already connecting millions of users

with next generation satellites

targeting 5G speeds from space and

dramatically higher capacity. Meanwhile,

Terapab just received major tax

incentives for what could become a $55

billion chip manufacturing project,

potentially linking SpaceX, XAI, and

Tesla into a vertically integrated AI

ecosystem. The question isn't whether

SpaceX is going public. to questions

whether investors fully understand what

they're actually buying, a rocket

company or the infrastructure layer for

AI, connectivity, compute and the future

economy. Got Larry Goldberg here today.

He is a serial entrepreneur and has been

an active venture capital investor for

the last decade. Check out his website

lumisenti.com.

Welcome Larry.

>> Great to be here on this particularly

apicious day.

Today is going to be Monday. Uh and uh

the actual SpaceX IPO will be Friday

very soon. Retail investors can actually

participate. So if you are interested uh

contact your broker, there's select

brokers. We'll we'll go through a lot of

that today. But uh the topic today is is

this is just it's going going bonkers

this whole SpaceX thing. I mean it's

it's gone a maybe too far, maybe too um

you know overly excited by folks. SpaceX

dropped this uh video. I'll play that.

And they're trying to position

themselves first as the only company

building the infrastructure of the

future across space, connectivity, and

AI. Let's watch this video.

Heat. Heat.

Heat.

Heat.

In order to

understand

the nature of the universe and all these

fundamental questions, we must expand

the scope and scale of consciousness.

Honestly, I I I don't know what to take

of this. It's very exciting. Maybe too

much of a frenzy, Larry. I don't know. I

would not recommend to I'm not saying to

everybody buy SpaceX or not buy SpaceX.

It's just it's getting too much of a

frenzy. And the question is, is it over?

Is it kind of like over too too much or

is it just right? What do you What's

your take on this?

>> You know, take it all with a pinch of

salt. I mean, I'm I've seen this kind of

thing before,

but it's fair to say that this is the

most unique

company. You know, you could think back

in moments in history.

Um

you think back to the launching of the

great colonizing companies

uh setting forth from Europe. You can

think of you can think about the Chinese

you know empire expanding

with the use of gunpowder and so on.

This is a moment in history and uh so

people get pretty excited to be

witnessing it and seeing it. So

I think I think the excitement is

warranted. I think people must be very

cautious about getting over their skis.

I think there's enough skepticism to

keep

to keep that

excitement somewhat tempered tempted.

Um so but it's it's fun to watch. I tell

you from my perspective it's fun fun to

watch. Um,

>> yeah,

>> you've been waiting for this for a long

time. I'm sure Elon has been waiting for

this a long time. We'll talk about his

employees have been waiting for this for

a long time. It's not only happening,

but it's happening at the kind of the

right time in history with the need as

they position it as a infrastructure

layer for AI, not it's not about space

per se, not about rockets. Um they

SpaceX also after they published that

video they followed up with this like

they felt it was important enough to

point out that retail investors will be

able to participate at the same prices

as the big institutions expected SPCX

which is the stock trading symbol that

will go live on June 12th price of $135

per share. Again another thing that

they've done that's just unprecedented.

They don't give a range. They're giving

you a price and that's the same price

that the the big boys are are buying it

at. Um so they have now officially

announced that the actual initial public

offering will be 555

million shares class A and it will be a

uh uh what $135 per share. So that would

raise it to 7 $75 billion would be

raised and that would be $7.5 trillion

would be the sorry

>> uh one what am I saying?

>> They will raise actually the total of

$75 billion.

>> Yeah. At $1.75 trillion. Sorry I'm

getting my my billies and trillies. So

the market cap will be $ 1.75 trillion.

Okay. Uh which is good. Remember the

some people were thinking it was going

to be two trillion. Now we don't know

what it'll end up the end of the day but

that is what this is for. Uh so this is

the actual data and then um or 8 85.7 so

they have the ability to even sell more

shares if it's overs subscribed I guess

right is that the way that works.

>> Yeah. So the underwriters can purchase

additional shares

um under the terms of the agreement uh

which if they do would raise the total

to 85.7 and um so that would be if the

demand is you I think if the demand is

very high they may do that. One of the

objectives is not to is things shouldn't

get out of hand too far. I mean, I've

heard people being very concerned about

the fact that retail may

over bid because of excitement. Um, not

understanding that,

you know, there isn't there isn't a a

sufficient supply

and that if they buy and send the prices

high, there's nobody on the other side

to sell it to.

And and so the you know

we're in uncharted territory, absolutely

uncharted territory. We we've not seen

this level of supply, this volume, this

this value of supply before. We haven't

seen potentially this level of demand

before. The question is

how does the how do the market makers

manage

the demand supply curve

you know on on the day which is Friday

which is a very unusual day by the way

for an IPO to go. I think only one in

10, one in 20 IPOs in the past have gone

on a Friday.

Mainly because

what happens in a in an IPO is you get

this demand and then towards the end of

the day you get it tapering off and

falling off. And you don't want to enter

a weekend, you know, way below the what

was the peak of demand because you get a

sense, oh, it's falling. Whereas if you

do like on Tuesday or Wednesday, you get

that by Friday, you get the the ups and

downs, leveling out.

>> So it's been usual I've done three IPOs

in my I've taken three companies public

in my time, not in the United States,

but in South Africa. and each time we

went on a Tuesday.

>> There's a lot of things about this IPO

that's so unusual and that's why it is

historic. Um, just to be transparent,

uh, Larry, you are an investor in

SpaceX. Um, I am not yet

>> and I have not decided if I'm going to

participate. I'm getting myself ready.

But um that's why I'm kind of like

looking at all this frenzy and

>> I'll tell you for what it's worth, I uh

went ahead and made a bid for shares

>> just like any retail shareholder. Yeah,

like any retail shareholder. I

>> Yeah,

>> made a bid for shares because I really

want to see what it looks like um in in

in my Charles Schwab account. So, I've

got a lot of accounts with Charles

Schwab. Uh, my family offices with

Charles Schwab. So, I'm not sure whether

they'll treat me as a retail shareholder

or not. But anyway, I went to the I went

there and made a bid for what it's

>> um and every single institutional, you

know, wants to be part of this. You got

Goldman Sachs who's actually leading it

now, Morgan Stanley, Bank of America,

Cityroup, JP Morgan, Barclays,

everybody. You name, you see the list

here. They all want a piece of this.

It's a huge list. And and by the way,

the ETF list of the number of ETFs

who've included SpaceX is unprecedented.

That list is massively long. And it's

rare that they actually have even

announced it prior to the IPO. It's

crazy. Uh Goldman Sachs, honestly, it's

weird that he chose Goldman Sachs. And

then of course JP Morgan even even Jaime

Diamond there has a history there

between the two of them. They weren't

partners for a long time. They sued each

other. But Jamie Diamond himself of JP

Morgan is getting personally involved in

the hype around SpaceX going public.

He's teaming up with SpaceX management.

He's going to actually meet with Gwyn

Shotwell and CFO Brett Johnson and

they're going to do uh you know host a

live Q&A this Thursday. It's norm. While

it's normal for big banks to pitch a

company to investors before it hits the

stock market, the sheer scale of the JP

Morgan campaign is unprecedented. It

highlights the absolute frenzy of

investors demand for what could become

one of the biggest stock market debuts

in history. What makes JP Morgan's

aggressive backing so surprising, said

Jamie. Jaime and Elon used to be on

terrible terms. In 2021, JP Morgan sued

Tesla over a messy dispute involving

stock options after Mus threatened to

take Tesla private. Tesla immediately

counters sued. two giants locked horns

for years. They finally buried the

hatchets and dropped the lawsuits in

November 2024. And then a few months

later, Jaime joked publicly that he and

Musk had hugged and made up, promising

that JP Morgan would support Musk and

his business empire going forward. I

mean, even your past enemies are now

want to be part of this IPO. Uh what's

any thoughts on this?

>> I will I will tell you that when you sit

in the conference room in Jamie

Diamond's office, it's very very very

impressive.

>> So I think even Elon would be somewhat

impressed by it. It's a pretty amazing

organization. JP Morgan, uh I I I've sat

there and you know been intimidated,

but I'm not Elon's height. And I don't

have his, you know, he's I don't know

what it is, but he has this personality

that is so large that it can fill any

space. So I can see he and Jamie Diamond

getting on very well indeed. And I'm

very pleased that they made it because I

have high a lot of money involved. Yeah.

>> And as leverage. Yeah.

>> Yeah. And the man is I think Jamie

Diamond is a gym is one of the great

gems of our um financial community.

>> He's absolutely great. Okay, so I do

want them to partner. Uh SpaceX has

tremendous leverage. Uh this is again

another thing that they did that just

it's great for retail, great just

amazing that they were able to pull this

off. But um a fee cut from IPO bankers.

The IPO bankers don't make as much money

targeting 500 million windfall. Uh so

it's pushing banks for one of the lowest

IPO fee rates ever. The company's

negotiating to pay less than 75% on its

plan 75 billion IPO though banks could

still collect roughly 500 million fees.

Goldman and Morgan Stanley are

reportedly set to take the largest share

of the fee pool. 21 other brokers

involved. This is far below the typical

IPO underwriting fee range of 4% to 7%.

This is like they're paying poultry

amounts. It is so nice to see the

strength that SpaceX has and uh this is

how much this is how much they raised in

the past um Facebook, Alibaba and others

of other mega IPOs each low versus other

mega.

>> Mhm.

>> Well, I mean 75% fee is not

unprecedented. GM GM did it on a $15

billion raise. I mean in real terms

2010$15 billion is probably closer to 40

billion today. So it's not that unpre un

you know precedented.

Um I don't remember their Ramco but I

know that they also squeezed for a very

very low fee. Um but listen, the banks

are going to do very well and um they're

certainly not crying about this level of

fee because the dollars, you will watch

their quarterlys will look pretty good

at the end of the quarter. As long as

things go well, if things don't go well,

then everybody could take a bath here.

But I think things are looking pretty

good for the moment. I hope nobody

starts a war tonight.

>> Exactly. Or this week. Okay. So uh one

of the things that uh again news is

coming out about you know capabilities

and potential revenue for uh SpaceX

Starlink mobile they published this

information this news 650 satellites in

low earth orbit today the world's

largest and only satellite to mobile

constellation is powering data voice

video and messaging across six

continents and will be accessible to

more than 1.7 billion people the nextG

satellites will even expand on this even

more and then Telra the largest telecom

company in Australia announced that over

200,000 of its customers connect to

Sonic Mobile per day. So, it's already a

real deal. It's no longer it's not just

this thing. Uh over 2.7 million

customers have connected at least once

within the last year. What stands out to

us the most is not the numbers, but what

they represent. A message home from a

remote road, a quick check-in during a

trip away, or peace of mind in places

beyond the range of our mobile network.

The nextG V2 startic mobile satellites

start launching in 2027 and they will

improve capacity. 5G speeds from space

with 100 times the data density of the

current V1 up to 150 megabytes. Uh will

seamlessly enable streaming, internet

browsing, high-speed apps, thousands of

spatial beams and high bandwidth

capability enabling 20 times the

throughput capability compared to first.

So that's coming in 2027. So this I

guess they're just trying to prove that

this is a real business already, right?

>> Yeah. And I you know it's interesting

that Telstra are an early partner of uh

Tesla of SpaceXes. I will just point out

that the chair person of Tesla

was the chief financial officer of

Telra.

>> So Rob Robbie Denhelms has this very

close connection with Telra. Just I see.

>> Thought I'd mention that.

>> Oh, I didn't know this. Okay. I guess

that's why there's a relationship.

>> Yeah.

>> People don't understand, you know, just

how experienced she is. I mean, she

that's a big company. It was the

largest, you know, it's the largest,

you know, operator in Australia,

huge operation. And, you know, she was

the CFO for many years. Then this uh

SpaceX uh IPO is the largest in history

so far. We'll see if it get anybody else

gets bigger than that. But uh boy,

they're going to make a lot of people

rich. SpaceX millionaires. 4,000 of them

will be um a millionaire. 400 will be

100 millionaires.

>> Wow.

>> Every employee who joined before the

first successful launch made unless they

sold early more than 100 million. SpaceX

list June 12th. Work backwards from the

cap table. This is how they calculated

the first 500 to join in 2002 to 2008.

they joined at $550 million company. If

they held it to now, right? Um they

maybe 150 to 250 still left holding

probably they would make that you know

$100 million each. Um 2008 SpaceX has

first successful launch. Uh and then

2010 to 16 that's companies now valued

at 10 billion and then there is a senior

grant for 100 to 200 people. Seuite

Shotwell Johnson passed one billion each

those two a layer of SVPs 100 clears 100

million but the most important thing is

the the employees um many of these guys

you know stuck to it and now they're

they're rich and then of course we've

learning now that Elon really favored

the his employees and he's actually even

carved out 5%

to be able to offer to friends family

and executives and others and and they

don't have a lock up period. So this is

something that he's really taking care

of good care of his employees.

>> Yeah. I mean, you know, working for

SpaceX

is very very demanding, extraordinarily

demanding. We read in several of the

books written, deeply researched books

written um just how tough it is on the

family and on the employee and just the

kind of sacrifices people have to make.

So every penny that's coming to them

appears to be very deserved indeed. And

so I I couldn't be more pleased for them

more than anything else in this whole

project. I couldn't be more pleased for

the employees. I really, you know, I

feel for them because I I watch these

launches in the middle of the night,

2:00 in the morning, and these guys have

been working for 3 hours getting four

hours, 5 hours getting this thing up and

running, and you know, they work through

at 2:00 and then they have to wait up

after we sign off because this launch

has been successful. an hour, two hours,

three hours into the orbit to make sure

the satellites in good health. These

guys really pull enormous amounts of

hours. They work their butts off. So,

they deserve every single penny coming

to them. One of the uh big controversies

it's already rearing its head now is

that Elon will become a trillionaire uh

with this IPO. Now, of course, these are

stock options and it's not cash. people

need to remember that and he deserves

it. He, you know, he almost went

bankrupt. Uh they have three flights uh

three the very first three rockets

failed. You see all those pictures with

the failed rockets. Uh it took him 20

years, right, to get to this point. Uh

but that is going to be the narrative

that he is going to be the richest guy

on earth and is he paying taxes all

those kind of things. Um do you have

thoughts on this?

>> Yeah, I do. I mean, I I think that if

anybody deserves to be in that

situation, he definitely deserves to be

in that situation. We talk about long

hours. Nobody nobody spends the hours in

their company that he does. Listen, I've

been an entrepreneur.

I've been up, I've been down, I've

worked very hard throughout my life. I,

you know, failed multiple times.

I I've been seen it all. and I didn't go

through a tenth

in my long career that he's been through

in a much shorter career. I I don't know

how he's survived, but he has survived.

And of course, what he's delivered in

terms of his employees, in terms of the

value he's brought to the United States,

I mean, he's probably made the single

biggest contribution to the US economy

of any living person today. There's no

doubt in my mind he has made the single

biggest contribution of any living

person in America in the United States

today. So yeah, does he deserve it?

Absolutely. Will he be criticized for

it? You bet. Will the criticism

mean anything to him? Not a damn thing.

And that's good.

>> Yeah. You did an incredible report where

you explained not only how much taxes

Elon has paid already, but all the uh

salaries he's given to employees. It's

just all the taxes they paid, the value

that they get, the

>> the taxes paid by every one of his

employees, the taxes paid by him, the

taxes paid by his company, the the the

amount of people he's employed, the

amount of uh infrastructure he's built,

the amount of money he's spent with

vendors in the United States, it's

staggering. You know that this man, this

single individual has generated 0.4% of

the gross domestic product of this

country. The greatest country on earth,

>> the largest the largest economy on earth

and the single individual, the single

individual has generated 04%. I mean it

is thousands of times more than the

average person. And it's gonna get even

crazier because uh robots uh AI data

centers all this we're talking about is

going to be you know some people are now

agreeing that it'll 10x the G US GDP 10x

it.

>> So

>> you know your point is so your point is

so strong when you think about what he's

going to deliver in the next 10 years

what this IPO will give rise to.

>> Yeah. I mean it, you know, it's one of

the ways we're going to get out of debt.

I mean,

>> yeah. At this point, no worries about

that anymore.

>> Yeah.

>> Okay. Uh in terms of uh speaking about,

you know, paying taxes and so forth.

>> Elon on this this yesterday was very uh

out there multiple posts uh making sure

people are aware of the scenario. So,

Terraab was approved to buy land in

Grimes County, Texas. And uh now it

still needs to go through public

hearings so they could push back and

say, "Hey, I don't want it in my

backyard." And there's other lots that

they they're considering, but this one

seems to be moving forward. And uh so,

you know, SpaceX received the approval

from Grimes Grimes County for huge tax

breaks for the company's terrify

project. The tax abatement would give

SpaceX a full exemption on property

taxes tied to the project. County

leaders have framed the terrify proposal

as potentially transformative moment for

Grimes County. The judge called it a

generational change. Grimes County

commissioners voted 4 to1 to grant the

company a tax increment in reinvestment

zone and tax breaks for the $55 billion

project east of College Station. Okay,

so this is just a render of what it

could become the the terra fab building

in that area. Elon replied saying

something that perhaps isn't clear is

that if this location works out, other

locations are still in the running.

SpaceX will still be paying at an annual

amount that increases tax revenue for

Grimes County by 25%. And will be by far

the biggest source of revenue for the

county. Taking into account taxes paid

by SpaceX employees and contractors,

Terapab will far exceed all revenue that

Grimes County currently earns. The

reason SpaceX asked for this, which is

standard practice for massive capital

investments, is because Terrafab will

have a large number of extremely

expensive machines for making chips.

property tax on those crazy money m

money machines would put us at a serious

competitive disadvantage relative to

other chip fabs in the world. And then

uh Elon or Sawyer repeated that taking

into account taxes paid by SpaceX

employees and contractors, Terra Fab

will far exceed all revenue the Grimes

County currently earns. Elon said by

far. And then this person said, "This

isn't a tax giveaway. It's a classic

case of smart long-term thinking. The

county gets a massive permanent uplift

in revenue from employees, contractors,

and broader economic flywheel. Terrified

will spin up while SpaceX avoids a

property tax trap that kills

competitiveness on hund00 million chip

machines. Grimes County just proved it

understands how real innovation

compounds. You don't tax the golden

goose before it even lays the eggs. This

is how generational infrastructure

actually gets built. Neon said, exactly.

Can you uh comment on that?

>> Not a lot to add. I mean, if you're

intell if you're half intelligent, you

understand the trade-off here. It's not

that they're not paying taxes, it's just

that they're going to avoid being taxed

on the value of the machinery and

equipment and building that they're

putting in there. In other words,

don't tax the the goose that lays the

golden egg. You know, t you know, by all

means tax all the eggs you sell. by all

means tax the employees for their

earnings and the and the houses and the

property that they move in. The county

will do great.

>> The county just Yeah. The county just

mustn't

>> tax the actual equipment that makes the

the the building and equipment that

makes the the the chips because this is

going to be very critical. You got to

understand that, you know, up until

2040, the cost of putting these chips

into space is going to render it more

expensive than groundbased

uh um AI factories, what you know what

we what we can consider AI factories. So

they have to save every penny they can

save. is going to be a very very

cost-sensitive operation to get those

you know those spacebased

processes to start equaling the cost of

groundbased processes. The

>> these are massive numbers we're talking

about uh people are going to make a lot

of money and he's going to share it with

employees but also counties,

governments, they're all going to get

in. They all want part of this.

Everybody thinks it's big.

>> The most important part of the the most

important part of this all is that it is

critical that the United States

gets these fabs up into space and gets

them economical

because right now we cannot compete with

China with their cost of electricity.

And so in this race to AI,

China has this builtin advantage

that they can't their citizens can't,

you know, protest against an an AI

factory being put into their

neighborhood as our people can.

>> I mean, this is uh global, right? So uh

TSMC Taiwan if China uh conquers Taiwan

for that reason they control AI the rest

of the world is in trouble. What do you

do? You this is world war.

It's going to be the largest world war

ever because you can't let you know uh

one country have complete control of AI.

So and what you need to do as Americans

is you need to create your own chips in

your own land and don't don't fight this

one. Uh Larry, what's your thoughts? Uh

what's your expectation for the day of

the IPO? Here's what Poly Market says.

These are the betting betting sites.

They're thinking that it's going to

close at $2.3 trillion. That's uh the

projections at this point.

>> You know, it's possible. I have I have

just learned not to try and project

this. I I I think that the value of the

shares are intrinsically sound at these

prices.

I would invest I would invest for the

long term. I have,

you know, quite a lot of u investment

already in SpaceX. I'm going to up it a

little bit. Not a lot. I'm I'm going to

up it a little bit. Um simply because I

want to participate in in this IPO.

Um every single I mean every single

IPO's had Elon's ever had before, which

is just one has been very good to me. I

want to be in this one as well.

>> Gotcha. It's historic. That's the That's

what we're covering today.

>> It is historic. Yeah.

>> Thank you so much, Larry. Appreciate

your uh comments today. Uh and uh follow

him on his website at lumicenti.com.

Follow him on his exac account at tesla.

Thanks everybody. I've created a website

that is the most comprehensive resource

for the Tesla investor. Please check it

out. Simply go to my website at

herdom.com.