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Which claims? I’ve been a SpaceX investor for about 8 years now, I’m completely satisfied with their progress, even despite the Starship setbacks, they’ve done
by ericd 4mo ago
Which claims? I’ve been a SpaceX investor for about 8 years now, I’m completely satisfied with their progress, even despite the Starship setbacks, they’ve done astounding work on all fronts. I’m not holding my breath for humans on Mars or us becoming a Kardashev 2 civilization, if that’s what you’re asking.
- bandrami 4mo agoDo you hold hopes for finding a revenue stream to outweigh the massive influx of AI debt Musk glued onto SpaceX?
- ericd 4mo agoIt looks like they're taking on $20B in debt to clean up xAI's debt, and then paying it off with the equity raise? Do you feel that's very significant for them? 1% dilution takes care of it.
- bandrami 4mo agoYou understand xAI hasn't magically stopped producing debt, right? It's still setting money on fire every single quarter
- ericd 4mo agoI think that's capex driving that, not opex, since they got those two (fragile) leases in place? They can stop building out their capacity there, if they want.
- bandrami 4mo agoRight but the word "capex" isn't a magical amulet that makes balance of payments and cash flow problems disappear. Plenty of companies have been wrecked by overextending on capital spending.
- ericd 4mo agoYeah, for sure, but it's also usually something that's a bit easier to trim when needed, unless they got way ahead of themselves and went deep into debt to do it. Most public companies have much worse debt:equity ratios.