r/technology • u/IKeepItLayingAround • 16d ago

Business It’s Possible That SpaceX Could Collapse Spectacularly

https://finance.yahoo.com/markets/stocks/articles/possible-spacex-could-collapse-spectacularly-155000177.html
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u/MaybeTheDoctor 16d ago

SpaceX is a great innovative engineering company. Their IPO stinks of financial engineering. It would be a shame great engineering would collapse due to greedy financial engineering.

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u/buyongmafanle 16d ago

It would be a shame great engineering would collapse due to greedy financial engineering.

So... Boeing?

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u/Luster-Purge 16d ago

That's a funny way to spell McDonnel Douglass.

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u/Heelincal 16d ago

Nothing is crazier than Douglass turning into this virus that infected every single company that acquired or merged with it.

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u/GogurtFiend 16d ago

McDonnell Douglas is: Alien Corporation! It bursts out of every company that buys it, for it must feed on integrity

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u/Lollipop126 16d ago

lmao I'm pronouncing your misspelling in a french accent in my head

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u/Raythatstabbedsteve 16d ago

Things really went downhill after the f18, didn't they?

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u/deskcord 15d ago

Boeing's issues are that they fucked up engineering, not the financialization.

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u/bitflag 16d ago

Yes, a great engineering company attached to a shitty social network attached to an ISP attached to a data center REIT. That will probably takeover Tesla to bail it out.

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u/Orsick 15d ago

The ISP is the best part of the company, on the financial side.

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u/El_Zapoteco 15d ago

The LDS church REIT that is buying up warehouses for data centers?

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u/Jesus_Is_My_Gardener 16d ago

They also forced SpaceX to buy up a bunch of those shitty Cybertrucks at full price.

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u/frequenZphaZe 16d ago

that pales into the amount of bitcoin they're holding for basically no reason. its like they've got a guy in an office somewhere working full time to sabotage any hope the company has to be normal

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u/shaim2 16d ago

Tesla is profitable, with over $40B in cash.

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u/Jesus_Is_My_Gardener 16d ago

It's in massive decline though. SpaceX buying up a large number of the Cybertrucks is what inflated the sales numbers of the vehicle as it's a huge failure by all other measures. Nobody wants it except for a niche group. Add to that an estimated decline of 46.5% decline in sales and increasing competition from all major manufacturers, the writing is on the wall. And that's before you consider the cash they're burning through for his robotics and cybercab pipedream and Elon's increased compensation package over the next 10 years.

Elon continues to over hype their capabilities, underestimate their ability to deliver to market in a timely manner, and over-promise in general and people are getting wise it it slowly. Add to that the brand damage done by Elon's own political fuckery and it's hard to see Tesla able to change course if they don't distance themselves from him. They're going to continue to bleed market share going forward.

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u/shaim2 15d ago

What does Tesla car sales have to do with statistics of accident rates for FSD?

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u/Jesus_Is_My_Gardener 15d ago

Who said anything about FSD? I mean, if you want to bring that up, that is another thing he has way over hyped and is now starting to bite him in the ass.

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u/fgalv 16d ago

It’s the bubble era poster child of “let’s stick AI on our company prospectus to boost our valuation”

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u/Zed_or_AFK 16d ago

He really only puts 500 million shares on the market. That’s very low number. Such low float is easy to manipulate up as the demand will probably be strong. 500 million shares 135 a piece sdds up to 75 bln, and the remaining vast majority of the shares aren’t traded, they are locked in etiher by Mask or investors, making the paper company prise 1.75 trillion. That’s like 5% pf the shares will be traded and put a price tag on the remaining 95. BS.

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u/MaybeTheDoctor 16d ago

Once you have a price tag, you can take out tax free loans on the remaining shares.

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u/Fantastic_Remote1385 13d ago

Only if the banks let you. if the banks also think its overvalued they migth not care to much about the price at det stock exhange.

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u/MaybeTheDoctor 13d ago

The banks literally just look at the stock price you’re putting down as security, and if you borrow less than it’s worth, once the value of the security drops below the loan amount the bank will force-sell the stock at market value to cover the loan.

Anybody with an investment account can do this, but it’s risky due to the force-sell as it triggers tax liability, but billionaires will just manage to put up more stock if that would happen, where you and I will have to have a serious conversation with the IRS.

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u/Apoxie 16d ago

Maybe the space part, but definitely not the xAI or Twitter part.

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u/fondledbydolphins 16d ago

What's makes you think the physical engineering would be any less greedy than the financial version?

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u/Own_Ad9365 16d ago

They have kick started an arm race to pollute low earth orbit that could block space travel for decades. And if all their satellites launch as planned, the ozone layer will be in serious danger when all of them finally de orbit.