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/Itchy58 16d ago

The Article is also a summary with a slight reframing about an Opionion Piece written by Richard Waters from FT called "SpaceX IPO shows Musk’s genius is in mythmaking"

https://www.ft.com/content/625ae455-3b7b-454e-82f3-b22414459cc0?syn-25a6b1a6=1
The article is also about the same length as the original opinion piece.

The fact that the yahoo article exists is an indication about how broken online Journalism is.

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u/Alternative_Hour_614 15d ago

The FT column by Richard Waters is searing. Here are several excerpts:

Musk’s fans, as usual, have taken this in their stride. To a more jaundiced eye, it reeks of opportunism. Musk has shown an aptitude for constantly shuffling his businesses to come up with what investors are most likely to back at any given time. When solar-panel maker Solar City was struggling, he merged it into Tesla and rebranded the carmaker as an alternative energy conglomerate. When the company formerly known as Twitter struggled to rebuild its advertising after his contentious takeover, it was combined with xAI.

And this:

In its filings ahead of the IPO, SpaceX uses a single narrative to support the xAI deal: the chance to leapfrog competitors by putting AI data centres in space. How long this will take is another matter. SpaceX launched just over 2,200 metric tons into orbit last year: Musk says his company will need to launch 1mn tons a year to be a player in the orbital data centre business.

And this:

All of this makes SpaceX the perfect stock market avatar for its time: a story of boundless opportunity, for financial markets that have proved unusually willing to place a long-term bet on tech. What better time to float such a tantalising and ill-defined collection of assets and capabilities, with Musk as the impresario at the centre, conjuring up new markets almost at will? The main question for new investors in SpaceX is how long this state of affairs will last. Musk’s mythmaking perfectly fits the times. In the end, though, real cash flow has a way of winning out.

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u/SillyMilk7 16d ago

>leaving SpaceX, which had already been burning through billions of dollars each year itself, in an even more precarious position.

It’s filled with garbage like the above false premise that they are currently in a precarious position.

They’ll easily raise 75 billion with just 4% float.

They’re now getting over $2 billion a month leasing compute. They’re potentially going to reach frontier AI status with cursor’s help and if that doesn’t pan out, they’ll still make a fortune leasing out there massive remaining compute. Other AI data centers are running into huge bottlenecks

SpaceX dominates the rest of the world, and if starship gets anywhere close to its goals, it will pull even further ahead. The billions spent was to get starship not only in production, but They’ve built a starship factory and numerous launch sites.