SpaceX Could Overtake Nvidia, Microsoft & Google in the AI Race

Ryan Zurrer (0:00)

You owe it to your bloodline to have some SpaceX, right? Your grandchildren will hate you if you could have bought SpaceX at 140 bucks and you didn't do it.

LG (0:10)

What's up, everybody? It's LGD Set here, and welcome to Milk Road Stocks, the daily market show that needs prices to finally skyrocket, but hopefully not explode when I'm trying to stick the landing. Today is Monday, October 19th, 2026 The AI trade just had one of its ugliest weeks in years. Chip stocks are getting crushed. Big tech is spending hundreds of billions on data centers and investors are starting to wonder who's actually going to make money and will they make money? And can this trade survive even just another couple months? But one investor thinks that SpaceX could become the biggest winner of the entire AI build out, and he believes a merger with Tesla is coming, maybe being announced as early as this week during the earnings call. To explain why and how that's going to happen, we're joined by Ryan Zurrer, founder and CEO of Dialectic, who's been investing in SpaceX since 2019 and thinks that they are just getting started. A reminder that our podcast today is free and that it wouldn't be possible without our partners at Suriance, the online platform that makes it easy to compare term life insurance options and get a free no obligation quote, keep an ear out for more information about them later in the show.

Ryan, welcome to Milk Road, man.

Ryan Zurrer (1:13)

Thanks for having me, LG.

LG (1:15)

Let's get into it. Honestly, I want to talk to you about so many things. We want to know why the AI trade might be totally cooked, but we have to get straight to what we've led with, which is, will the companies announce a merger this week? How the hell does that work? Because there's never been anything like this, man. Sure, like Time Warner or whatever, but this would be unprecedented, like many things that Elon has done.

Ryan Zurrer (1:36)

Yeah. That's an important data point, is how complex and challenging such a merger would be, both from an execution perspective, and also politically. So let's lay out the breadcrumbs. We had last week's extraordinary demo of the collaboration project on the Roadster, which blew everyone's mind. But then production doesn't start until 28, maybe even 29 before it ramps. And that's part of why Tesla traded down off of that.

We've got SpaceX moving the Q3 numbers up to tomorrow. Very unusual to do that. Why not give GrokBot more time to get traction and be able to produce fresher numbers later on in November when it was planned? That's going to be a 1-2 tomorrow than Wednesday with the Tesla announcement. It would make sense if you start to put those things together, combined with trying to get a merger done, or at least announced and inked prior to the midterms, that this would actually be merger announcement week. Polymarket's got that priced at 18 cents right now.

Not financial advice, but that could be a reasonable bet to take, that we may see the announcement of the merger this week, and that's why they're bringing all these things forward in the way that they have.

LG (3:10)

How would that, how do you, I mean, like, this is maybe a question even beyond us, but it's like, how do you even merge companies like that? Like, how does that, how does that work? And I think more importantly, Ryan, how do the stocks, how does stock price react to something like that? Because you think it's, you think it's bullish, especially when they're showing you flying cars, but is it?

Yeah.

Ryan Zurrer (3:33)

So, so we'll start, we'll start at the end and then we'll work back.

Right away, this is likely to result in both stocks actually trading down off the news. And why is that? That is mostly because the market hates a conglomerate, right? And we're kind of seeing this, this return to a giant industrial conglomerate, a la GE, you know, Jack Welch, mid-90s kind of, kind of organization. A very complex organization to run. Obviously, you know, these are the smartest engineers on the planet.

Both, both teams ultimately are commercializing, you know, their great engineering talent. And they just point their engineering talent at different problems, whether it's flying cars or data centers or, you know, space flight or, you know, orbital data centers or whatever else. And so, you know, culturally there's overlap. They will run as mostly distinct entities. So I don't, I don't think you're seeing like the Tesla brand go away. Although Elon doesn't love the Tesla brand because he bought into it and didn't create it. So it could go away.