SpaceX Goes Public Tomorrow — Look Out Below

**Ed Elson** (0:00)
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**SPEAKER_3** (1:24)
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**SPEAKER_2** (2:10)
If money is evil, then that building is hell.

**Ed Elson** (2:18)
Welcome to Prof G Markets, I'm Ed Elson. It is June 11th, let's check in on yesterday's market vitals.
The major indices all tumbled, more than 1.5% after President Trump expressed frustration that negotiations with Iran were taking too long. The S&P 500 hit a five-week low, and then, after hours, the US began striking multiple targets in Iran, at which point the price of Brent crude climbed. Meanwhile, the yield on 10-year treasuries was mostly stable, despite the hottest inflation report in three years. More on that later.
Okay, what else is happening? It is a monumental week for the AI industry. SpaceX is expected to price tonight, and will begin trading on the NASDAQ tomorrow, in what will be the largest IPO of all time. Currently shares for SpaceX are more than four times oversubscribed, implying at least $300 billion in invested demand. Meanwhile, OpenAI filed confidentially for its IPO earlier this week, hot on the tail of Anthropic. So very soon, the public markets are going to get an unprecedented look into the business of AI. In the meantime, we got a preview of investor sentiment on AI from Oracle's earnings last night, which sent the stock plummeting 8%.
For more on what is next for the AI trade and also his thoughts on the SpaceX IPO, we are speaking with Gil Luria, Head of Technology Research at DA. Davidson. Gil, it's good to see you. An unbelievably important week for the markets here. And I think we got to start with SpaceX. $1.77 trillion valuation. It's priced at 95 times sales. I've made my opinion on the matter quite known to our audience. I think it's overvalued, but I'd love to hear your views.

**Gil Luria** (4:12)
My view is going to be more descriptive than prescriptive. I've been following Elon Musk companies for more than a decade. And they rarely trade on fundamentals. They rarely trade on the same valuation metrics as other companies. And I've thought about why that is. And I think the answer is that Elon has this trick that he plays. He has the business that he has today, the business that's on the come, and then the big dream business. So for Tesla, the business he has today is selling cars. The business that's on the come is robo taxi. And then somewhere down the line, there's Optimus robots running around.
The equivalence for SpaceX is right now we have Starlink. Soon we'll have Orbital data centers. And then eventually we're putting a million people on Mars. Right? And that allows him to get away from having his companies valued on the fundamentals of what he has today. Because there's always something bigger coming near term, and then something even bigger coming long term. And that's how he does it with Tesla. And he's been successful doing it with Tesla for a long time. And now it seems to be working for SpaceX.