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SpaceX IPO (?)

Discussion in 'SpaceX' started by HabitualUser, May 3, 2017.

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  1. HabitualUser

    HabitualUser Member

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    link

    Not sure what to make of this yet, the fund is reputable but the letter sounds shady. Buying into TSLA right now for possible access to an unannounced SpaceX IPO seems highly risky. Even if it was confirmed today, it would still be months before the IPO. The volatility of TSLA could cause more loss than would be gained from a possible IPO spike.
     
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  2. Cattledog

    Cattledog Active Member

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    Awesome if true, thanks for the link. Pretty sure this would create a TSLA spike and then a SpaceX spike.
     
  3. GSP

    GSP Member

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    If true, this would be a big change in direction for SpaceX. Elon has stated in the past that he intends keep SpaceX a private company to allow him freedom to "pursue his philanthropic goals" (Mars) without investor interference.

    GSP
     
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  4. CT200h

    CT200h Member

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    What does everyone think of the validity of this story?
    How about empire capital partners?
    Are they they type of firm to handle an IPO like this?

    Mentioned on the empire capital site is a requirement to have a 10,000 usd investment in Tesla to be eligible for access to the IPO on SpaceX. This seems like either an effort to reward loyalist , or a ploy to sell more Tesla stock, it just to gain investors by empire
     
  5. mkjayakumar

    mkjayakumar Active Member

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    Is that even legal for an IPO to have those kind of restrictions?
     
  6. CT200h

    CT200h Member

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    I am not informed about IPO' s or rules at all.
    What's said on the site is that those who own Tesla shares will be given early access to the IPO.
    This would seem to be a directive from Tesla to reward/encourage investment in Tesla

    Most times from what I read big wigs and banks and institutional investors are given early access, not you and me and average joes.
     
  7. ecarfan

    ecarfan Well-Known Member

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    Elon has said many times that he will not take SpaceX public because the investment timeline is decades (if not centuries). In addition, he does not want to lose control of the company.

    The story the OP linked to is just a rumor, in my opinion. I don't believe SpaceX will go public for decades.
     
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  8. Grendal

    Grendal Active Member

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    Exactly. Colonizing Mars, which is the primary reason for the existence of SpaceX, is not a profit making venture. Elon knows this. So taking SpaceX public is one of the last things that Elon would want to do.
     
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  9. Reciprocity

    Reciprocity Active Member

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    I agree in principle but what if.. What if the plan is to IPO SpaceX and create a new company called something like Mars Colony One or MCO. Elon could then funnel is personal wealth into MCO and contract all transport services from SpaceX. It could contract the boring company to build boring equipment for Mars and Tesla to build rovers and batteries for the boring equipment and panels for the settlement and so on.

    This would be called the "Elon Musk - Have your cake and eat it part duex plan"

    This would also give Elon a company to hire all the engineers and scientists that are required for putting a colony on Mars that is not related to rockets. He could then have a Bezos like plan to fund MCO with a billion a year until there are a million people on Mars. You buy your ticket to Mars from MCO and MCO pays SpaceX for the ride.

    It would solve a lot of problems that could even arise within SpaceX as it relates to sacrificing profits for a personal desire to go to Mars. There are other investors in SpaceX who do want to see a profit and are not as focused on the human race backup plan.

    Thoughts?
     
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  10. ggr

    ggr Roadster R80 537, SigS P85 29

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    It sounds like BS to me.
     
  11. Reciprocity

    Reciprocity Active Member

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    Company has already denied it, I guess it was to good to be true.
     
  12. Nikxice

    Nikxice Member

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    I can't see an IPO happening anytime soon for SpaceX. If Musk needs more capital I'm sure there's plenty of private equity available, ready to pony up too.

    Think about having one bad day on the launch pad, like last September, and the predictable beating the stock will take. At this point I can't imagine Musk wanting the headaches associated with trying to explain why rocket science isn't so easy, when he's facing a tough crowd during quarterly conference calls. No pun, just not buying it.
     
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  13. mkjayakumar

    mkjayakumar Active Member

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    I can't stand a number of Space "experts" chiming in with their BS articles in SeekingLies.com on how Musk is out to take all our tax money and escape to Mars. Every company that makes July 4th fireworks rockets will now be branded as SpaceX killers.
     
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  14. ecarfan

    ecarfan Well-Known Member

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    #14 ecarfan, May 3, 2017
    Last edited: May 3, 2017
    Elon also knows that many SpaceX shareholders would put pressure on him to show a profit in the near future and that would create a lot of headaches for him. What he's trying to do is hard enough without having to deal with investors who don't share his vision.

    Yes, at some point in the next few years SpaceX will likely need to find additional sources of funding (beyond the satellite launch revenue stream) to build the first ITS and then many more. But an IPO will not be happening. One possible revenue source, maybe a decade from now, would be the sat comm network SpaceX is working on. Another source is wealthy friends of Elon like Larry Page. In his ITS presentation last year he mentioned public/private partnerships. It's going to be a challenge, but I'm sure Elon is already developing plans for more funding. And of course, there is always Kickstarter and stealing underpants... ;)
     
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  15. HabitualUser

    HabitualUser Member

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    The link states the Elon has said he would not do an IPO until SpaceX is having "regular flights to Mars". I can't verify this, but this would seem shaky in of itself.

    SpaceX is indeed a private company, but Elon is not the only shareholder. Various rounds of financing have taken place, and these investors need, at some point, an exit event (IPO). This happens in every large and growing private company that dips into venture financing, without exception. Private equity can also provide exit events for companies, as well as additional financing rounds. But companies can get too big for these options (see Uber), and an IPO is the only remaining option.
     
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  16. ecarfan

    ecarfan Well-Known Member

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  17. ecarfan

    ecarfan Well-Known Member

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    Yes, eventually. But I think it is decades away. We shall see.
     
  18. HabitualUser

    HabitualUser Member

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    From SpaceX site: Space Exploration Technologies (SpaceX) has raised a billion dollars in a financing round with two new investors, Google and Fidelity. They join existing investors Founders Fund, Draper Fisher Jurvetson, Valor Equity Partners and Capricorn. Google and Fidelity will collectively own just under 10% of the company. .

    Google can be patient, but the other investors aren't interested in waiting "decades". And by the way, an IPO doesn't necessarily mean loss of control/power to the founder. Look at the Snapchat IPO - the public shares don't even have voting rights.
     
  19. adiggs

    adiggs Active Member

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    A key difference with SpaceX from many or most other companies and individuals - many private company owners are looking for an IPO or other exit event to monetize at least some of the value they have built up in their company. They actively want to be purchased / acquired, or to IPO.

    Elon actively wants to avoid an IPO or acquisition for SpaceX, for good reasons that he has articulated publicly and persuasively.

    It is certainly the case that financial demands to achieve the objective may grow to the point that filling them will require an IPO, but it is also certainly the case that Elon will be looking for alternatives that will allow him to delay that day of reckoning for as long as possible (where "as long as possible" may mean "until Elon grows bored with his most important and passionate hobby" :))

    With that much motivation, intellect, and skill/experience turned to the task, I'm betting on "Elon will find a way to avoid an IPO", no matter how big and insurmountable the financing problem looks like to to me.
     
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  20. Grendal

    Grendal Active Member

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    I agree. Elon is planning on putting all of his money into making humanity multi-planetary if it comes down to it.
     

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