Ed Ludlow

Loads of people will not be familiar with that.

And so what usually happens with a big IPO is in late stage growth primary rounds where the company raises money, issues new equity, you get these kind of anchor investors.

that come in ahead of an IPO.

It might be a year in advance.

In this case, what we're reporting is the tender is confirmed, $800 billion valuation, $421 share price.

Could you explain that dynamic ahead of a big IPO, how there isn't any new primary round, not raising new money, which, as you know, Elon Musk has been at pains to point out on X?

Sure.

In its simplest form, if you're a business that's profitable and you don't need new capital to continue growing, why dilute yourself by taking a new investment injection through a primary?

A secondary liquidity offering is a way to reward employees or perhaps early investors by getting them liquidity for their shares without diluting ownership overall for everybody else.

And this is something that SpaceX has elected to do over the past few years, I believe kind of semi-annually, in a way to provide liquidity, not dilute themselves, also set a new kind of external price for their shares, but still maintaining an immense amount of control.

And the only thing I would call out here, Ed, is that obviously $2 billion in liquidity is a big number.

But it's actually only 0.25% of the valuation of this company.

And so I hesitate to kind of identify that $800 billion is the new market price for SpaceX, more so that it is the market price that SpaceX has decided is out there.

Yes.

Yeah, the tender was capped at $2 billion.

That's what I reported.

We just have 30 seconds.

Valuation at IPO, $1.5 trillion.

What do you make of that?

That, I think, would put it in uncharted waters, right?