The Hidden Risk Inside SpaceX

Ed, Tim, and Bethany, thanks for coming on On.

Thank you.

Thank you.

Ed?

Thank you.

[laughs]

This is a great topic, and it's sort of a look into Wall Street in general, what's happening right now around tech stocks.

But volatility has defined SpaceX's run since going public in June.

It was the biggest public offering that we've had in forever.

When we're taping on this Tuesday morning, the shares are trading around $135 a share, up a little bit, but around where it went public in.

We'll get into the investors who are betting against the company in a moment, but first, make the bullish case for SpaceX.

What's driving the value? Let's be fair to Elon.

Ed, you go first, then Bethany, and then Tim.

This is gonna be a tough one for me.

[laughs] I know that.

But I'll do my best.

I want to pick you first.

Okay.

Uh, the bullish case is that you have a really exciting and pretty profitable business in Starlink.

That is their connectivity business.

That's the satellites, and that's actually a business that I genuinely am bullish on.

I think that's a great business.

The space business is currently a money loser, and it's not really driving much of the value of this company at this point, despite the fact that it's called SpaceX.

But if there's a world where we're sending lots more people into space, if we are going to start building orbital data centers, which is what they like to talk about, then there's a world in which you'd need a lot of rockets to send that stuff out into the atmosphere.

And then the final piece of the business, which was kind of just an add-on a few months ago, but it's now become basically the entire story of SpaceX, is the AI business.