Elon Musk's Wealth and Vision Drive a Historic SpaceX Milestone

0:00 Speaker 1 Sunday morning. Well, we have a new Trigona air in the world and his name is Elon Musk. SpaceX went public and it hit new highs after it opened and with us today is my son. He is the chief operating officer of the Red Apple Group, but he’s also maintained his other title of well, chief investment officer for

0:28 entire Red Apple Group company group of companies. And John Junior SpaceX. What’s going on with it? Explain A lot of people are taken in by it that people are saying, it’s like buying Apple at one dollar a share. It’s like doing this, this, and this. Give us your gut feeling.

0:53 You’ve been the chief investment officer now for many years, you’ve done very well for the company. Give us your gut feeling.

1:02 Speaker 2 Well, thank you for having me on. I mean, just long story short. No one has ever made money betting against Elon Musk in the long term, and I think this time will be no different. Sure, in the intermediate term there could be volatility, but over the long term he’s usually more right than wrong. And before we get

1:22 into the details on SpaceX itself and the IPO, because there’s a lot of interesting mechanics that went into it. You mentioned that he is now worth you know, over a trillion dollars I think one point two one point three depending on where we’re it closed. Just to put that in context to people, you know John D. Rockefeller,

1:39 who is considered, you know, the wealthiest man in American history. If you were to look at his net worth at the time of death, it was about one and a half percent of America’s GDP, which is very substantial. Today Elon Musk is worth somewhere between three and a half and four percent of America’s GDP.

1:57 Speaker 3 So it’s triple almost double trip.

2:00 Speaker 1 So would you say he was one of the richest Americans ever?

2:04 Speaker 2 I would say that Elon Musk is soundly now as a percentage of GDP the richest.

2:09 Speaker 1 Is he an American citizen? I mean, I remember he came from the from South Africa.

2:14 Speaker 3 And he’s a very important one.

2:16 Speaker 2 And what I’d tell you is for a person like Elon Musk and the companies that he created, they have to work on such long time scales, decades and decades of no revenue, that his ability to sell the story to investors, to employees, to customers is so strong but what I would say is I want to say thank

2:38 you to all of the investors who backed them early, because I believe SpaceX being built in America is one of the greatest forms of philanthropy to the United States and to the American people and frankly humanity that has ever been done, because it is our chance of making human life multiplanetary, which I think, as far as a

2:55 contribution for one human is pretty extraordinary.

2:59 Speaker 1 That is now, what is the well I mean, you’ve read up on it, so you know more about SpaceX than I do. Definitely and more than a lot of people do. What is the plan for SpaceX? Are they selling their services to NASA.

3:17 Speaker 2 So they’re selling them to a lot of people. And you know, SpaceX is really a conglomerate at this point. There’s the launch business, which you know has reusable rockets, and there’s a whole product tree from that. There’s their satellite business to provide global Internet. And if any of your listeners have been on some of some commercial airlines lately,

3:35 you notice your Wi Fi is a lot better because a lot of airlines have adopted Starlink, which has been fantastic X, which used to be Twitter is also inside of the business, and Xai, his competitor to open Ai and to Anthropic, is also in the business. So a bet on SpaceX is really a bet across all of

3:53 these different verticals.

3:54 Speaker 1 Has you already merged them in together? Is are you about to merge them together?

3:57 Speaker 3 They’re all together? Wow?

3:59 Speaker 1 So Twitter is part of it, Tesla is part of it, and all the other companies are all part of SpaceX.

4:07 Speaker 2 Except for Tesla, which is its own company. And Tesla also owns its own set of companies as well.

4:14 Speaker 1 And do you think, I mean, it’s just your opinion. It’s easy and emerge Tesla into.

4:20 Speaker 3 Just my personal picient opinion.

4:22 Speaker 2 I do you know, I think there’s a good chance because Tesla is one of its big new growth verticals is it’s humanoid robots. So he’s making a bet that you know, there will be robot you know, humanoids walking around and working. And I believe it’s his intention to when we go to Mars, first send robots to Mars

4:41 to build everything before humans get there. And so I feel like it’s necessary to eventually emerge these things together.

4:48 Speaker 1 Understood. What else should American people know about it? I mean, right now, everybody’s buying it based on a dream. When do you see substantial revenues or return of investment?

5:00 Speaker 2 This is the key, and a lot of the banks put out some very substantial estimates, and no doubt, in part to get allocations to the deals because the fees we were so extensive here and right now. You look at the forward revenue and it’s about I don’t want to say only because it’s an accomplishment, but it’s about

5:19 twenty six billion dollars and the market cap is you know, two point two trillion. If you compare that to Meta, or you compare that which is Facebook, or you compare that to Amazon, there’s a huge differential. So when you’re going and investing in SpaceX, you have to assume that he probably more than ten X’s revenue in the next

5:37 you know, five years, would be my guess.

5:39 Speaker 1 When when when all the other AI stocks went down in the last week or so, were people taking money out of those companies and putting him into SpaceX? Is that one of the reasons they fell off?

5:53 Speaker 2 I think you’re I think you’re dead on. Along with some other kind of geopolitical changes that were happening with the president, which you covered.

6:01 Speaker 3 Well, you know the thing that you know.

6:04 Speaker 2 Snowflake, which is a database company, had one of the most successful IPOs in history. They were one hundred and twenty x oversubscribed. People say, well, SpaceX was only four times over subscribe, five times over subscribe, but that’s four hundred billion dollars of indications, so you can’t expect it to be ten twenty x oversubscribe. There’s just not enough money.

6:24 Speaker 3 To do that.

6:25 Speaker 2 And one of the things about Elon Musk is his ability to attract investments from retail investors, who tend to invest more for the dream than for short term fundamentals. And in this case, I think there was one hundred billion dollars of indications from just retail, which is which was really a huge accomplishment.

6:43 Speaker 1 John Katsimatidis join your chief investment officer for the Red Apple Group at AL and chief operating officer so for the for Red Apple. Thank you so much for filling in all our listeners. Any last words you want to.

6:59 Speaker 2 Say, yes, thank you, and this was not investment advice, so do your own research.

7:04 Speaker 1 Do your own research. Thank you so much.