Ana Kasparian — Something STRANGE Is Going On At SpaceX...

Elon Musk just had that giant SpaceX IPO. So, he's swimming in cash. No, he has to borrow money now. Wait. What? That historic trillion-dollar IPO just happened like a minute ago. Why are we talking about borrowing money? And to help us understand this. >> Well, Cenk, um it turns out that the cost or the price of the SpaceX shares has actually gone down following news that SpaceX would need a what's referred to as a bridge loan. Let's take a quick look at this graph cuz it'll kind of help you visualize what's happening to the share price for SpaceX following the initial public offering. So, this is a chart from the New York Times. It represents how the price of SpaceX stock has changed since its IPO. And that IPO debuted at $135 a share, but by June 16th, it traded for just over $200 a share. But as you can see, the price dropped for several days in a row after that. And as we speak, the share of SpaceX trades for just over $156. Okay? So, um it's not uncommon for the price per share to fluctuate following an initial public offering. So, this is not outrageous. This isn't so crazy. However, the word of SpaceX needing to borrow $20 billion has made um some of the investors into the company a little bit concerned, a little worried. And Bloomberg in this next video explains why. Take a look. >> As the company yesterday said that they are seeking to raise investment-grade debt for the very first time, Bloomberg News has reported that they are seeking some $20 billion in debt. Now, this is an unusual move. This is early in the lifespan of a company to be seeking that sort of debt. Again, the company is not profitable yet. They have been burning through cash. And some of the language that they have used to talk to debt investors, let's take a look at that because it's very similar to what we saw in their IPO prospectus. It is very grandiose. This company is talking about how our mission is to build the systems and technologies necessary to make life multi-planetary. Now, that sounds all fine and well if you're trying to drum up excitement for equity investors, debt is a very different instrument. Some of these investors could be with the company for up to 30 years. They get paid at maturity. They get that interest as well. >> Jank, back over to you. >> Yeah, look there's something strange going on here. The point of the going public is to get the money you need to run your company and it seems like they got plenty. So, I'm just perplexed by the $20 loan. >> Let me just let me really suss that out for all of you guys, okay? After just recently securing $86 billion in a record IPO, Elon Musk's SpaceX plans to raise at least $20 more by selling bonds. That just means loan. They need a loan of $20 after $86 billion record IPO. Like, what's going on? What's going on here? Okay, so there's more. The proceeds from the bond offering will mostly be used to refinance a $20 bridge loan SpaceX took in March as it prepared to go public. Such loans basically ensure that companies planning to go public have the money they would need to wait out an unfavorable turn in market conditions. But, why are you expecting an unfavorable turn in market conditions? Okay, it is hard to imagine that SpaceX needs more money. SpaceX told prospective buyers of the bonds that it had some 100.8 billion dollars in cash and cash equivalent securities in the bank on June 19th. That's more than Microsoft Microsoft had in the bank at the end of last year. Matt Phillips from Axios reported that. So, look, I I don't understand these things, right? Like this is not my wheelhouse and I feel like you have a firm grasp on these things, at least better than I do. So, like what do you think is happening here? >> So, look, uh massive speculation and then profiteering off the spec- speculation. So, let me break it down a little bit. So, first, logic says that if you have a hundred billion dollars in cash and you have a twenty billion dollar loan, you pay off the twenty billion dollar loan. I get why they took the bridge loan in the first place to get to the IPO, okay? And twenty billion for a company their size, all right, it's not irrational. Uh but now you got a hundred billion in cash. When you keep the cash, you can't spend it all at once, guys. So, you've got to then invest the cash to some degree to get money back. So, now you're paying interest, but then using the money to speculate that you're going to make more money than you would in paying the interest on the debt. Otherwise, you'd pay them out twenty billion back right away. You see what I'm saying? So, let's say I'm making up numbers here that the interest on the debt you have is five percent, you're hoping to make more than five percent, ten percent, or whatever with the money cash that you have, so you're profiting off of that loan. But that's not has nothing to do with the core business. Are you going to build the business? Are you not going to build a business? I don't understand why these banks even agree to it. I would say you got a hundred billion in the bank, brother, you pay me my loan and I'm done. But anyway, some other guy and some other bank finance said, "Fine, they're allowed to do that." So, now the problem that I'm worried about is, so SpaceX says, "Oh, we're this amazing company already." And And they And they're good like they do interesting product, I get it, they've had some success. So, you two things can be true at the same time. You You could have a great company worth a hundred billion dollars and then you pretend it's worth a trillion dollars. So, it's still a good company at a hundred billion, but if you're pretending it's worth a trillion, that could create a giant problem, okay? So now, uh if you don't already have all these plans that you've made and that you're executing with a hundred billion dollars, then we have no idea how good your company's going to be because you didn't even make those investments yet. And we don't even quite know what those investments are going to be. >> this is a disaster. >> So and your investment is multi-planetary life? >> god, it's a disaster. >> What what are you going to We're going to live in Uranus? I don't want to live in Uranus, okay? Oh, what are we doing? This is nonsense. People are going to go pay to live in Mars or Saturn? No, they're not. In our lifetimes? That's just made-up marketing gobbledygook, okay? That means they don't have real plans. >> Okay. >> Okay. >> What happens to ordinary American workers who have been dutifully contributing to their IRAs or their 401 Ks, which of course tend to have a mix of mutual funds or ETFs and are very likely invested in SpaceX and And if SpaceX fails in some way, like what happens to those investments? >> They don't even It doesn't even have to fail, guys. So let me give you the now the enraging scenario that some people are already living through, okay? So they take this price out at 135, they drive it up, everybody gets excited, and at that time everybody's egging on the suckers at the table. And if you saw The Big Short or you read The Big Short, you know the suckers at the table are the guys who run the 401 Ks and the pension funds. So those are the guys that don't directly profit themselves from those funds. So but they do get taken out to fancy dinners by the guys who are trying to rob them blind, etc. They get all these perks, etc. So they've set up this terrible system. So those suckers come in at 200 because obviously suckers did come in at 200. So then when it goes back down to 125 or even lower, if Elon was able to sell and there might be rules around that and you've got to look into see whether it's Elon, the original investors, etc. But certainly people bought, insiders bought it at 135 when it first launched. Right. That is guaranteed, okay? >> The Justice Department just said it's stopping work on a nearly $1.8 billion anti-weaponization fund after a judge's ruling. And depending on where you get your news, that story gets framed in two completely different ways. On the left, one outlet basically calls it what it is, a slush fund that may finally be on its way out. On the right, Fox and others frame it as the administration backing off of a controversial fund to [music] help clear the way for a stalled Republican immigration bill. Sure, buddy. Sure. And that is exactly why I recommend Ground News. It's a website [music] and app that pulls together reporting from across the political spectrum, so you can compare how the same story is covered, see the bias distribution, check the factuality ratings of the sources, and even see who owns the outlets behind the reporting. [music] And in a story like this, that matters. One version makes this look like a corruption problem that deserves scrutiny. The other turns it into a tactical concession in a larger immigration fight. Ground News lets you see the difference immediately instead of just taking in whichever version got put in front [music] of you first. Ground News also has a blind spot feed, which highlights stories that one side of the political spectrum is barely covering it all, so you're not just stuck inside the version of events your usual media bubble is feeding you. If you want to stay informed without getting pulled into somebody else's spin, I genuinely recommend Ground News. Go to ground.news/tyt [music] or just scan the QR code. Using our link gets you 40% off the Ground News Vantage [music] plan. And you can also gift a subscription directly through Ground News. So, when they sold at 200, they already made that profit without SpaceX making a single product. They already made that profit cuz they bought it and sold it. And the person who bought it at 200 when it goes back down to 135, already lost that money. >> Oh. >> Okay. >> And remember >> So, now hold on one second. >> ahead. >> Even if from then on Elon makes zero profit from from SpaceX, but if he was one of those insiders, well, then he already made billions upon maybe tens of billions of dollars just from the speculation on that stock. And he doesn't have to make a good product. He just has to profit off the speculation. And the speculation, where do those profits come from? From creating a good product like in capitalism? No. It comes from the suckers at the table. The guy who bought it at 200 and had to sell it at 135. He already lost his money. And that's you guys. So, the 401k, the retail investor, the regular guy who bought the money, the pension funds, you're going to get lost in that speculation. You're going to lose very badly as you did in 2008. And then when Elon takes the money home and all the insiders take the money home, they're going to go, "What what what? Capitalism." That's not capitalism. That's rigging the system to actually destroy competition, rob the average guy, >> Yeah. >> and then claim you're doing it on behalf of free markets. This isn't how free markets work. This is corporatism, where they rob us blind. >> So, Tesla is not part of SpaceX yet. Um right now, you know, there are SpaceX is made up of several companies, if you will. So, there's xAI, that's Elon Musk's AI company and the creator of Grok. You have Starlink, which is Elon Musk's satellite internet company, uh as well as SpaceX, which is the, you know, multi-planetary mumbo jumbo that he's pursuing, which seems It's as long as it's based on reality and not, you know, these grandiose dreams that aren't based in reality. Nonetheless, last year the three companies reported a loss of $5 billion on revenue of $18.5 billion. So, they lost money. As of Monday's close, the stock was fetching 56 times expected sales for 2026. Analysts, meanwhile, don't expect SpaceX to turn a full-year profit until 2028. Tesla is not part of SpaceX. Yet, Elon Musk has suggested that he wants to merge Tesla with SpaceX. Now, the following video will give you an example or an idea of whether SpaceX's valuation is ridiculously high. Take a look. >> Elon Musk is preparing the largest initial public offering in human history. At a $1.75 trillion target valuation, SpaceX would be worth more than every American defense contractor combined, worth more than the market caps of Coca-Cola, McDonald's, Disney, Nike, and Starbucks all put together, and worth more than the top 10 companies on the London Stock Exchange combined. So, if you're wondering who the is buying SpaceX, a company losing $5 billion per year at the largest IPO valuation in history, well, the answer is you. >> So, I don't know. Remember a story that I covered, if it wasn't last week, it was the week before prior. Um you know, we were talking about how this initial public offering is going to make Elon Musk a billionaire or trillionaire, and people think, on the right especially, that like, "Oh, the condemnations have to do with the fact that we're jealous. People are jealous that he's a trillionaire." No, no. In order to fast-track this IPO, certain things had to certain regulations were bypassed. Okay, he was able to bypass certain regulations that have been put in place to protect retail investors. >> But remember Donald Trump fired almost everyone that was overseeing fraud on in the stock market and in white-collar crime. He fired them from the IRS, the SEC, and almost every organization in the government. Remember Dodge came in looking for ways fraud and abuse and deregulation. They deregulated themselves so that they could do these kind of >> Yep. >> uh deals. So, look, Adam Smith explained that in order to have free markets, you must have regulation. Otherwise, monopolies happen and oligopolies happen and they destroy free markets cuz they destroy competition. You should actually read up on capitalism. So, when the uh government doesn't function and there is no regulation, it creates a situation where the powerful and the wealthy can set up uh conditions where they profit and you can't, right? And so, and there's so many of those, but I want to explain cuz I said they're robbing us blind. Look, they can do a uh an IPO. >> Right. >> There's nothing wrong with that. If they loosen the regulations so that they could cheat, that would be a huge problem. We'll come back to that another time. We'll keep uh monitoring that, right? Now, when they treat the 401k's as the suckers at the table and you guys lose money, you uh write the complain and be angry. That's your retirement money that's going away and then he gets to go, "Oh, you're just jealous of" No, but bro, you didn't even make any money with SpaceX yet. You made the money from the speculation, from the stock market, not from the actual product. But, I'm mainly talking about the other robbery. Do you know how much money Tesla and SpaceX has gotten from us? From you? $38 billion from different government uh uh entities. At the federal government, the state, and the local governments, $38 billion. Now, could you build a great company that loses $5 billion a year if you got $38 billion free from the American people and then you got another couple of hundred billion free from the stock market. I mean, look, let's just keep it at 100 billion cuz that's the cash they have on hand. If somebody gives me 38 billion to start a company, and then the stock market gives me a hundred billion dollars cuz I did a great job of doing marketing hype or scam or whatever you want to call it. Now I have 138 billion dollars. Could I lose 5 billion the next year? I think I could pull that off and be just as much of a genius as Elon Musk. Wow, you're so amazing. And I could tell you fairy tales about how I'm going to take you on to Venus on a unicorn. Okay, but most important thing is stop the subsidies to these billionaires and trillionaires. Why are we giving trillionaires subsidies? >> They need the help. >> insane. >> the welfare. >> That is a robbery. That is corruption. That is dark money. That's why Elon Why do you think Elon gave Trump over 250 million dollars when he was running? You think he did it for a charity? You think he did it because he cares about you? >> No. >> No, he did it to get the 38 billion and to loosen the regulations so he could do a a thing like this. >> There's so much corruption. It's just so absurd. And you know, for all the hate that so-called right-wingers, and I'm talking about establishment right-wingers, claim they have for redistribution of wealth, we've been redistributing wealth quite a bit in this country from the bottom to the top. There's no question. >> Every time you ring the bell below, an angel gets his wings. Totally not true, but it does keep you updated on our live