I agree, that would be a wonderful segment of society to take advantage of but does the US government allow foreign entities to invest in SpaceX?
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I'm not convinced that a holding company is going to happen. Today, there's a great deal of collaboration and cross pollination between Tesla, SpaceX, and Boring, and this will continue regardless.Have you guys noticed Elon's latest comments about the new Tesla master plan? He specifically mentioned that SpaceX and Boring would be included in some way.
Makes me wonder if he is really considering the company X holding company deal. If so I'll have to figure out if I want to root for Tesla to buy SpaceX at a higher or lower price, depending on which investment would be helped more.
To comply with US defense-related rules, SpaceX needs to be kept reasonably independent of Elon's other companies.
For SpaceX, the main reason to come under the umbrella of a holding company would be to eliminate the need to continue to seek additional, outside funding. However, this is hoped to be a short term problem, assuming Starlink ends up becoming a cash cow. Even now, SpaceX has a high valuation on its own, and raising funds through a Starlink IPO will be another option.
Perhaps a holding company, with Tesla, might make more sense for Boring and Neuralink. Even if Tesla were to acquire those smaller ventures outright, it wouldn't cost the shareholders much, though Tesla would undoubtedly be accused of "losing focus".
Elon can also sell more Tesla shares and personally invest the proceeds in SpaceX, Boring, and Neuralink. The downside to this approach is that some of the funds would be "lost" to taxation. However, that might not be all bad, as continuing to pay significant taxes would help Elon to push back whenever the political Left accuses him of not paying his "fair share".
As an investor I'm not too keen on the idea for some of the reasons you mentioned. Adds risk and complexity and WS already struggles to understand any individual Musk company.
MasterchiefTS
Member
BTW, that ($180B) would imply something like a $1,200/share price. When I bought in April 2020 is was $220/share and the valuation was something like $34M.
Yeah, seems high.
Forbes reported a $100B valuation in October at $560 a share. Then SpaceX did another raise of $337M in December.
New member here. I have lurked off and on in this thread after legal issues with a financial advisor. He is now up on 9 felony charges. He did get me into a Spacex fund through Oceanic Partners. The units in the Spacex had a starting valuation of $220 in summer of 2019. 10% upfront fee on the amount invested plus a 15% fee on profits when the fund is closed. Expensive, I really didn't know what I was getting into. Just received my 2021 K1 today, now K1's have to show an unrealized gain/loss. Valuation is now $600 as of 12/31/2021. Will I ever see the end of the rainbow (pot of gold) out of this illiquid investment?
I wonder...
I wonder...
JRP3
Hyperactive Member
Just saw I wrote $34M for April 2020, meant $34B but caught the mistake after edit window closed - sorry. But boy don't I wish!
I've been using $560 a share in my spreadsheet. $1200 sure would be nice though!
- Price: $82/unit
- Estimated Valuation: ~$146B
- Placement fee: 5%
- Management fee: 0
- Performance fee: 20%
- Minimum: $1M
Wow, brutal terms.
If SpaceX does make it to Mars one day hard not to see it worth a couple of trillion.
StarLink fully executed may be worth three to four hundred billion.
Definitely one of those companies people want to own at any cost due to excitement / status.
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