4 ms·

Remember that xAI acquired Twitter/X, a failing overvalued business. And then SpaceX acquired xAI for a highly dubious $250 billion even though they’re irreleva

Remember that xAI acquired Twitter/X, a failing overvalued business. And then SpaceX acquired xAI for a highly dubious $250 billion even though they’re irrelevant in AI. And today SpaceX’s president talked about merging with Tesla (https://techcrunch.com/2026/06/12/spacex-president-gwynne-shotwell-just-gave-another-hint-at-a-tesla-merger/ https://techcrunch.com/2026/06/12/spacex-president-gwynne-sh...), another weakening business. It seems like a shell game if being played where one company is used to bail out the investors of other companies. With all this merging, shouldn’t there be a case for breaking up SpaceX and not having it become some overly large conglomerate? How are all these dubious moves being blessed by boards of these companies - are they corrupt and stacked with Elon’s friends? And what of the pay structure Musk has. Will a merger with Tesla trigger its conditions in a dishonest way? Ultimately, SpaceX is WAY overvalued. Morningstar valued them at roughly half of the IPO price they were seeking (https://www.morningstar.com/stocks/spacex-what-investors-need-know-about-its-enormous-upcoming-ipo https://www.morningstar.com/stocks/spacex-what-investors-nee...). This spike does not make sense, and people will likely get burned at some point. But Musk will become a trillionaire.

jkestner 4mo ago
Don't forget that Tesla bought SolarCity to bail out Musk's cousins. I need a chart of all his mergers.
- petilon 4mo ago
  [flagged]
  - l23k4 4mo ago
    Utterly nonsensical chart
- SilverElfin 4mo ago
  Michael Burry made this chart to track just the Nvidia - SpaceX relationship: https://finance.yahoo.com/markets/stocks/articles/michael-burry-calls-nvidia-ai-093601475.html https://finance.yahoo.com/markets/stocks/articles/michael-bu...
petilon 4mo ago
> roughly half of the IPO price they were seeking That's already very high. Their profitable businesses are (1) Starlink and (2) Launching satellites. Starlink is growing revenue at maybe 50%, and revenue for launching satellites is growing maybe 10% annually. But Goldman Sachs, which is leading the IPO process is telling investors that it expected SpaceX’s total revenue to reach $474 billion in 2030, up from $18.7 billion last year. That's 25x growth of revenue in just 4 years.
- laughing_man 4mo ago
  I have read the Google deal makes xAI profitable. In the short term, anyway.
  - petilon 4mo ago
    xAI failed to produce a frontier model. They got involved into nudifying and other questionable activities as well. People started leaving in droves: https://www.nbcnews.com/tech/elon-musk/xai-musk-addresses-wave-departures-xai-founder-rcna258651 https://www.nbcnews.com/tech/elon-musk/xai-musk-addresses-wa... xAI is a failed company, as is X. Their merger into SpaceX is basically a scam. Elon Musk justified this by saying he is going to send xAI servers into space using SpaceX. This is an unproven idea, not ready for investing.
    - laughing_man 4mo ago
      What I was trying to point out is xAI has a lot of data center capacity and is making bank renting it to other companies.
      - petilon 4mo ago
        Sure, but renting out data center capacity is not that lucrative. You get 15% markup that's all.
        laughing_man 4mo ago
laughing_man 4mo ago
Twitter isn't failing. It makes a little bit some quarters and loses a little bit other quarters.
s1artibartfast 4mo ago
Elons wealth is entirely in his companies. His worth is what people estimate his shell game is worth. There isnt really an option where Elon can pull the full value out of the company and walk away.
anon7000 4mo ago
To be clear, companies are valued at whatever people are willing to pay for stocks. Their real financial performance is, as far as I can tell, completely detached from stock price in any real physical form. The only thing that matters is what investors are willing to pay. If that’s true (which it is, right), the stock market is basically just gambling. At which point, rationally, the SpaceX IPO makes sense.

jkestner 4mo ago

Don't forget that Tesla bought SolarCity to bail out Musk's cousins. I need a chart of all his mergers.

petilon 4mo ago
[flagged]
- l23k4 4mo ago
  Utterly nonsensical chart
SilverElfin 4mo ago
Michael Burry made this chart to track just the Nvidia - SpaceX relationship: https://finance.yahoo.com/markets/stocks/articles/michael-burry-calls-nvidia-ai-093601475.html https://finance.yahoo.com/markets/stocks/articles/michael-bu...

petilon 4mo ago

> roughly half of the IPO price they were seeking That's already very high. Their profitable businesses are (1) Starlink and (2) Launching satellites. Starlink is growing revenue at maybe 50%, and revenue for launching satellites is growing maybe 10% annually. But Goldman Sachs, which is leading the IPO process is telling investors that it expected SpaceX’s total revenue to reach $474 billion in 2030, up from $18.7 billion last year. That's 25x growth of revenue in just 4 years.

laughing_man 4mo ago
I have read the Google deal makes xAI profitable. In the short term, anyway.
- petilon 4mo ago
  xAI failed to produce a frontier model. They got involved into nudifying and other questionable activities as well. People started leaving in droves: https://www.nbcnews.com/tech/elon-musk/xai-musk-addresses-wave-departures-xai-founder-rcna258651 https://www.nbcnews.com/tech/elon-musk/xai-musk-addresses-wa... xAI is a failed company, as is X. Their merger into SpaceX is basically a scam. Elon Musk justified this by saying he is going to send xAI servers into space using SpaceX. This is an unproven idea, not ready for investing.
  - laughing_man 4mo ago
    What I was trying to point out is xAI has a lot of data center capacity and is making bank renting it to other companies.
    - petilon 4mo ago
      Sure, but renting out data center capacity is not that lucrative. You get 15% markup that's all.
      - laughing_man 4mo ago

laughing_man 4mo ago

Twitter isn't failing. It makes a little bit some quarters and loses a little bit other quarters.

s1artibartfast 4mo ago

Elons wealth is entirely in his companies. His worth is what people estimate his shell game is worth. There isnt really an option where Elon can pull the full value out of the company and walk away.

anon7000 4mo ago

To be clear, companies are valued at whatever people are willing to pay for stocks. Their real financial performance is, as far as I can tell, completely detached from stock price in any real physical form. The only thing that matters is what investors are willing to pay. If that’s true (which it is, right), the stock market is basically just gambling. At which point, rationally, the SpaceX IPO makes sense.