Balance of Power Notify me• Jun 12, 2026• 19:34Interview

Instant Reaction: SpaceX Jumps in First Trades Following Record $75 Billion IPO | Balance of Power

From Balance of Power

Kailey Leinz(Host and analyst for the 'Balance of Power'…)•Ed Ludlow(Host of Bloomberg Tech)•Instant Reaction(A financial and political news analyst…)•Craig Trudell(managing editor)•Yahaira Anand(reporter)•Joe Mathieu(Guest)

Executive Summary

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12 quotes

Extreme valuation at over 100 times sales for a largely unprofitable company.
The entire long-term AI business model is contingent on the unproven, full reusability of the Starship system.
The AI strategy is a very recent addition to the company's narrative, raising questions about its maturity.
Elon Musk has openly admitted that the initial approach for xAI was flawed and required a restart.

Tapping into a massive, multi-trillion dollar total addressable market for enterprise AI.
Near-term, high-value revenue streams from renting compute capacity to major AI players like Google and Anthropic.
The Starlink satellite internet business is already cash-flow positive, providing a stable and growing revenue base.
Potential for a synergistic merger with Tesla to create a dominant technology conglomerate.

Following its successful IPO, SpaceX's market capitalization exceeded $2 trillion, making it more valuable than Tesla, Meta, and Saudi Aramco.

Investor Jim Chanos expressed skepticism about SpaceX's valuation, noting its market cap is 110 times revenue for a company that is not profitable.

Google has a contract with SpaceX valued at nearly $1 billion per month, contingent on SpaceX delivering its promised computing power.

Craig Trudell believes it is likely that Tesla will eventually be merged into SpaceX.

SpaceX launched a record-setting Initial Public Offering of $75 billion, with shares priced at $135.

SpaceX stock opened on the Nasdaq at $150 per share, 11% higher than its IPO price.

SpaceX's initial public offering valued the company at approximately $1.8 trillion.

SpaceX's Starlink satellite internet service has become cash flow positive and is a cash-generating part of the business.

SpaceX is pitching a future business model where the majority of its revenue will come from selling AI software.

SpaceX claims its total addressable market is $28.5 trillion, with $26.5 trillion of that attributed to enterprise AI.

SpaceX's long-term AI business plan is dependent on making its Starship launch system fully reusable and operational on a regular basis.

Anthropic has filed confidentially with the SEC for an Initial Public Offering.

Processed Jun 12, 2026Daily intelligence brief → yt-dlp + mlx-whisper + Gemini