Latest / Making Cents / The SpaceX IPO Needs a Bright Red Hype Warning

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The SpaceX IPO Needs a Bright Red Hype Warning · Making Cents

• 0:02
  Hey
• 0:02
  team,
• 0:02
  it's
• 0:03
  Francis.
• 0:04
  Look,
• 0:04
  today
• 0:04
  is
• 0:04
  a
• 0:05
  big
• 0:05
  day
• 0:05
  for
• 0:06
  the
• 0:06
  share
• 0:06
  market.
• 0:07
  The
• 0:07
  first
• 0:07
  of
• 0:08
  one
• 0:08
  of
• 0:08
  three
• 0:09
  big
• 0:09
  tech
• 0:10
  AI
• 0:11
  listings
• 0:11
  for
• 0:12
  this
• 0:12
  year
• 0:12
  is
• 0:13
  going
• 0:14
  live
• 0:14
  and
• 0:14
  it's
• 0:15
  SpaceX,
• 0:16
  which
• 0:16
  means
• 0:16
  Elon
• 0:17
  Musk
• 0:17
  is
• 0:17
  attached,
• 0:18
  which
• 0:18
  means
• 0:18
  of
• 0:19
  course
• 0:19
  there
• 0:19
  is
• 0:20
  a
• 0:20
  whole
• 0:20
  awesome
• 0:21
  pony
• 0:22
  show
• 0:22
  circus
• 0:23
  attached
• 0:23
  as
• 0:24
  well.
• 0:24
  It's
• 0:25
  going
• 0:25
  to
• 0:25
  be
• 0:25
  interesting
• 0:26
  and
• 0:26
  I
• 0:26
  wouldn't
• 0:27
  be
• 0:27
  surprised
• 0:27
  if
• 0:27
  you
• 0:28
  see
• 0:28
  some
• 0:28
  fluctuations
• 0:29
  whether
• 0:29
  or
• 0:30
  not
• 0:30
  you're
• 0:30
  taking
• 0:30
  part
• 0:30
  in
• 0:30
  this
• 0:31
  ipo,
• 0:32
  you
• 0:32
  will
• 0:32
  probably
• 0:33
  see
• 0:33
  some
• 0:34
  ripple
• 0:34
  effects
• 0:35
  through
• 0:35
  your
• 0:35
  kiwisaver,
• 0:36
  through
• 0:37
  any
• 0:37
  other
• 0:37
  investments
• 0:38
  that
• 0:38
  you
• 0:38
  have.
• 0:39
  It's
• 0:39
  going
• 0:39
  to
• 0:39
  be
• 0:39
  a
• 0:40
  biggie.
• 0:40
  And
• 0:40
  it's
• 0:41
  just
• 0:41
  the
• 0:41
  start.
• 0:42
  So
• 0:42
  I
• 0:43
  wrote
• 0:43
  a
• 0:43
  whole
• 0:43
  piece
• 0:44
  about
• 0:44
  it
• 0:44
  in
• 0:45
  my
• 0:45
  weekly
• 0:45
  investing
• 0:46
  newsletter,
• 0:46
  the
• 0:47
  Market
• 0:47
  Memo,
• 0:48
  and
• 0:48
  I
• 0:48
  thought
• 0:48
  what
• 0:49
  better
• 0:49
  time
• 0:50
  than
• 0:50
  to
• 0:50
  get
• 0:51
  that
• 0:51
  here
• 0:51
  for
• 0:51
  you
• 0:51
  as
• 0:51
  well,
• 0:52
  just
• 0:52
  in
• 0:52
  case
• 0:52
  you're
• 0:52
  not
• 0:52
  subscribed
• 0:53
  to
• 0:53
  my
• 0:53
  newsletter.
• 0:54
  When
• 0:55
  SpaceX
• 0:56
  goes
• 0:56
  live
• 0:56
  today,
• 0:57
  let's
• 0:57
  check
• 0:58
  out
• 0:58
  my
• 0:59
  interesting
• 1:00
  feelings
• 1:00
  on
• 1:00
  the
• 1:01
  matter,
• 1:01
  shall
• 1:01
  we
• 1:02
  say?
• 1:02
  I've
• 1:03
  also
• 1:03
  got
• 1:03
  another
• 1:04
  edition
• 1:04
  that's
• 1:05
  gone
• 1:05
  out
• 1:05
  on
• 1:05
  this,
• 1:06
  but
• 1:06
  let's
• 1:06
  just
• 1:06
  do
• 1:06
  one
• 1:07
  at
• 1:07
  a
• 1:07
  time.
• 1:07
  If
• 1:07
  you
• 1:07
  would
• 1:08
  like
• 1:08
  to
• 1:08
  subscribe
• 1:08
  to
• 1:09
  the
• 1:09
  Market
• 1:09
  Memo,
• 1:10
  super
• 1:10
  easy
• 1:10
  to
• 1:10
  do.
• 1:11
  Francescook
• 1:11
  Co
• 1:12
  NZ
• 1:13
  Invest.
• 1:14
  But
• 1:14
  until
• 1:14
  then,
• 1:15
  here's
• 1:15
  my
• 1:15
  thoughts.
• 1:21
  The
• 1:21
  SpaceX
• 1:22
  IPO
• 1:23
  needs
• 1:23
  a
• 1:23
  bright
• 1:24
  red
• 1:24
  hype
• 1:25
  Warning
• 1:26
  Part
• 1:26
  1
• 1:27
  hey
• 1:28
  team,
• 1:28
  cards
• 1:28
  on
• 1:28
  the
• 1:29
  table.
• 1:29
  I've
• 1:29
  been
• 1:29
  a
• 1:30
  Musk
• 1:30
  hater
• 1:30
  since
• 1:31
  before
• 1:31
  it
• 1:31
  was
• 1:31
  cool.
• 1:32
  I've
• 1:33
  always
• 1:33
  thought
• 1:33
  he
• 1:33
  was
• 1:33
  overhyped,
• 1:34
  said
• 1:34
  cringy
• 1:35
  things,
• 1:35
  and
• 1:35
  had
• 1:36
  a
• 1:36
  habit
• 1:36
  of
• 1:36
  making
• 1:37
  grand
• 1:37
  promises
• 1:38
  that
• 1:38
  he
• 1:39
  didn't
• 1:39
  deliver
• 1:39
  on.
• 1:40
  But
• 1:41
  I'm
• 1:42
  also
• 1:42
  a
• 1:42
  solid
• 1:43
  believer
• 1:43
  in
• 1:44
  letting
• 1:44
  people
• 1:44
  invest
• 1:44
  their
• 1:45
  money
• 1:45
  in
• 1:45
  the
• 1:45
  ways
• 1:46
  that
• 1:46
  matter
• 1:46
  for
• 1:46
  them.
• 1:47
  And
• 1:47
  if
• 1:48
  something
• 1:48
  is
• 1:48
  a
• 1:48
  possibility
• 1:48
  to
• 1:49
  help
• 1:49
  normal
• 1:49
  people
• 1:49
  get
• 1:50
  ahead,
• 1:50
  I
• 1:51
  can
• 1:51
  usually
• 1:51
  be
• 1:51
  won
• 1:51
  over.
• 1:53
  So
• 1:53
  with
• 1:53
  my
• 1:53
  declaration
• 1:54
  of
• 1:54
  bias
• 1:55
  aside,
• 1:55
  I've
• 1:56
  been
• 1:56
  watching
• 1:56
  the
• 1:56
  upcoming
• 1:57
  SpaceX
• 1:58
  IPO
• 1:58
  with
• 1:59
  a
• 1:59
  lot
• 2:00
  of
• 2:00
  interest.
• 2:01
  As
• 2:01
  usual
• 2:02
  with
• 2:02
  anything
• 2:02
  musk,
• 2:03
  it's
• 2:03
  getting
• 2:03
  a
• 2:04
  lot
• 2:04
  of
• 2:04
  hype
• 2:05
  and
• 2:05
  a
• 2:05
  lot
• 2:05
  of
• 2:05
  interest,
• 2:06
  and
• 2:06
  it's
• 2:07
  working
• 2:07
  differently
• 2:07
  from
• 2:08
  normal
• 2:08
  in
• 2:09
  a
• 2:09
  few
• 2:10
  key
• 2:10
  ways.
• 2:11
  It's
• 2:12
  not
• 2:12
  just
• 2:12
  the
• 2:13
  biggest
• 2:13
  ever
• 2:13
  IPO,
• 2:14
  although
• 2:15
  it's
• 2:16
  that
• 2:16
  too.
• 2:17
  They're
• 2:17
  targeting
• 2:18
  a
• 2:18
  valuation
• 2:19
  of
• 2:19
  2
• 2:19
  trillion,
• 2:20
  which
• 2:20
  is
• 2:22
  quite
• 2:22
  a
• 2:22
  few
• 2:22
  zeros.
• 2:24
  It's
• 2:24
  also
• 2:24
  open
• 2:25
  to
• 2:25
  the
• 2:25
  little
• 2:25
  guys,
• 2:26
  you
• 2:26
  and
• 2:27
  me,
• 2:27
  in
• 2:27
  a
• 2:28
  fairly
• 2:28
  unprecedented
• 2:29
  way.
• 2:30
  So
• 2:30
  is
• 2:31
  it
• 2:31
  a
• 2:31
  good
• 2:31
  idea
• 2:31
  for
• 2:32
  your
• 2:32
  cash?
• 2:32
  Let's
• 2:33
  run
• 2:33
  through
• 2:33
  it
• 2:35
  first.
• 2:35
  WTF
• 2:36
  is
• 2:37
  an
• 2:37
  ipo?
• 2:38
  We've
• 2:39
  talked
• 2:39
  before
• 2:39
  about
• 2:40
  how
• 2:40
  the
• 2:40
  share
• 2:40
  market
• 2:41
  just
• 2:41
  lets
• 2:42
  you
• 2:42
  become
• 2:42
  a
• 2:43
  business
• 2:43
  owner
• 2:43
  without
• 2:44
  actually
• 2:44
  running
• 2:45
  the
• 2:45
  business
• 2:45
  every
• 2:46
  day.
• 2:47
  Well,
• 2:47
  an
• 2:47
  IPO
• 2:48
  is
• 2:48
  the
• 2:48
  first
• 2:49
  step
• 2:49
  in
• 2:49
  that
• 2:50
  process.
• 2:51
  IPO
• 2:51
  stands
• 2:52
  for
• 2:52
  Initial
• 2:53
  Public
• 2:53
  Offering.
• 2:54
  It's
• 2:54
  when
• 2:54
  the
• 2:55
  public,
• 2:55
  you
• 2:55
  and
• 2:55
  me,
• 2:56
  are
• 2:56
  given
• 2:56
  the
• 2:57
  chance
• 2:57
  to
• 2:57
  own
• 2:57
  a
• 2:57
  bit
• 2:58
  of
• 2:58
  that
• 2:58
  company
• 2:58
  for
• 2:59
  the
• 2:59
  first
• 2:59
  time.
• 3:00
  It'll
• 3:00
  be
• 3:01
  listed
• 3:01
  on
• 3:01
  the
• 3:01
  stock
• 3:01
  exchange,
• 3:02
  where
• 3:02
  those
• 3:03
  pieces
• 3:03
  of
• 3:03
  the
• 3:03
  business
• 3:03
  will
• 3:04
  be
• 3:04
  bought
• 3:04
  and
• 3:04
  sold
• 3:05
  like
• 3:05
  any
• 3:06
  other
• 3:06
  share.
• 3:07
  Companies
• 3:07
  do
• 3:07
  it
• 3:07
  to
• 3:08
  raise
• 3:08
  money,
• 3:09
  usually
• 3:09
  so
• 3:09
  that
• 3:10
  they
• 3:10
  can
• 3:10
  invest
• 3:10
  back
• 3:11
  into
• 3:11
  the
• 3:11
  business
• 3:12
  and
• 3:12
  become
• 3:12
  even
• 3:13
  bigger
• 3:13
  and
• 3:13
  more
• 3:14
  successful.
• 3:15
  So
• 3:16
  why
• 3:16
  does
• 3:16
  SpaceX
• 3:17
  want
• 3:17
  to
• 3:17
  do
• 3:17
  it?
• 3:18
  They
• 3:18
  want
• 3:18
  to
• 3:19
  raise
• 3:19
  more
• 3:19
  than
• 3:19
  $80
• 3:20
  billion,
• 3:21
  which
• 3:22
  could
• 3:22
  fund
• 3:22
  all
• 3:22
  sorts
• 3:23
  of
• 3:23
  things,
• 3:23
  from
• 3:24
  rockets
• 3:24
  to
• 3:25
  improving
• 3:25
  Starlink
• 3:26
  or
• 3:27
  those
• 3:27
  Mars
• 3:27
  ambitions
• 3:28
  we're
• 3:28
  always
• 3:28
  hearing
• 3:29
  about.
• 3:29
  Whatever.
• 3:31
  And
• 3:31
  an
• 3:31
  IPO
• 3:32
  does
• 3:32
  get
• 3:32
  people
• 3:33
  pretty
• 3:33
  hyped
• 3:34
  because,
• 3:34
  hey,
• 3:34
  it's
• 3:35
  the
• 3:35
  first
• 3:35
  time
• 3:36
  it's
• 3:36
  been
• 3:36
  publicly
• 3:37
  available.
• 3:38
  You
• 3:38
  might
• 3:38
  not
• 3:38
  have
• 3:38
  been
• 3:39
  able
• 3:39
  to
• 3:39
  get
• 3:39
  in
• 3:39
  at
• 3:39
  the
• 3:40
  actual
• 3:40
  beginning
• 3:41
  of
• 3:41
  the
• 3:41
  company,
• 3:42
  but
• 3:42
  this
• 3:42
  is
• 3:42
  pretty
• 3:42
  close
• 3:43
  to
• 3:43
  it.
• 3:44
  Pros
• 3:44
  and
• 3:45
  cons
• 3:45
  to
• 3:45
  that
• 3:45
  though,
• 3:46
  because
• 3:47
  as
• 3:47
  they
• 3:47
  say,
• 3:47
  when
• 3:47
  you
• 3:48
  list
• 3:48
  a
• 3:48
  house
• 3:49
  valuation
• 3:49
  is
• 3:50
  one
• 3:50
  thing
• 3:51
  and
• 3:51
  finding
• 3:51
  out
• 3:52
  what
• 3:52
  people
• 3:52
  will
• 3:52
  really
• 3:53
  pay
• 3:53
  is
• 3:54
  another.
• 3:55
  It's
• 3:55
  the
• 3:55
  exact
• 3:56
  same
• 3:56
  on
• 3:57
  the
• 3:57
  share
• 3:57
  market.
• 3:58
  Smart
• 3:59
  people
• 3:59
  come
• 3:59
  in,
• 4:00
  value
• 4:00
  the
• 4:00
  company,
• 4:01
  say
• 4:02
  what
• 4:02
  price
• 4:02
  they
• 4:03
  should
• 4:03
  put
• 4:03
  on
• 4:03
  the
• 4:03
  shares,
• 4:04
  and
• 4:05
  then
• 4:05
  it
• 4:05
  goes
• 4:06
  out
• 4:06
  to
• 4:06
  the
• 4:06
  market
• 4:07
  and
• 4:07
  you
• 4:07
  find
• 4:08
  out
• 4:08
  whether
• 4:08
  people
• 4:09
  will
• 4:09
  actually
• 4:09
  buy
• 4:10
  or
• 4:10
  sell
• 4:10
  at
• 4:11
  that
• 4:11
  price.
• 4:12
  You
• 4:12
  might
• 4:12
  have
• 4:13
  signed
• 4:13
  up
• 4:13
  and
• 4:13
  bought
• 4:14
  a
• 4:14
  bargain.
• 4:15
  As
• 4:15
  people
• 4:15
  scrap
• 4:16
  over
• 4:16
  the
• 4:16
  shares
• 4:16
  and
• 4:17
  push
• 4:17
  the
• 4:17
  price
• 4:17
  up.
• 4:18
  Well,
• 4:19
  nice.
• 4:20
  You
• 4:20
  made
• 4:20
  a
• 4:20
  profit.
• 4:22
  Or
• 4:22
  you
• 4:22
  might
• 4:23
  have
• 4:23
  been
• 4:23
  sucked
• 4:23
  in
• 4:24
  by
• 4:24
  hype
• 4:24
  that
• 4:24
  others
• 4:25
  weren't.
• 4:26
  You
• 4:26
  paid
• 4:26
  a
• 4:27
  lot
• 4:27
  and
• 4:27
  now
• 4:27
  others
• 4:28
  aren't
• 4:28
  as
• 4:28
  interested.
• 4:29
  The
• 4:30
  price
• 4:30
  drops,
• 4:31
  you
• 4:31
  make
• 4:31
  a
• 4:31
  loss,
• 4:33
  so
• 4:33
  you
• 4:33
  have
• 4:33
  the
• 4:33
  possibility
• 4:34
  of
• 4:34
  a
• 4:34
  fast
• 4:35
  gain
• 4:35
  or
• 4:36
  equally
• 4:36
  fast
• 4:37
  loss.
• 4:39
  When
• 4:39
  you
• 4:39
  look
• 4:39
  at
• 4:40
  it
• 4:40
  this
• 4:40
  way,
• 4:40
  there
• 4:41
  is
• 4:41
  actually
• 4:41
  two
• 4:42
  different
• 4:42
  prices
• 4:42
  in
• 4:43
  the
• 4:43
  mix
• 4:43
  for
• 4:43
  an
• 4:43
  ipo.
• 4:45
  Because
• 4:45
  when
• 4:45
  people
• 4:46
  sign
• 4:46
  up
• 4:46
  for
• 4:46
  a
• 4:47
  normal
• 4:47
  ipo,
• 4:48
  there's
• 4:48
  the
• 4:49
  offering
• 4:49
  price.
• 4:50
  That's
• 4:50
  the
• 4:51
  price
• 4:51
  for
• 4:51
  those
• 4:51
  who
• 4:51
  say,
• 4:51
  yep,
• 4:52
  amazing,
• 4:53
  I'm
• 4:53
  in.
• 4:54
  They
• 4:54
  sign
• 4:54
  up
• 4:55
  to
• 4:55
  the
• 4:55
  IPO
• 4:55
  before
• 4:55
  it
• 4:56
  hits
• 4:56
  the
• 4:56
  market
• 4:57
  at
• 4:57
  a
• 4:57
  set
• 4:57
  price
• 4:58
  from
• 4:59
  those
• 4:59
  valuers
• 5:00
  they
• 5:00
  pay.
• 5:01
  And
• 5:01
  from
• 5:02
  the
• 5:02
  listing
• 5:02
  day,
• 5:03
  those
• 5:03
  shares
• 5:04
  are
• 5:04
  theirs
• 5:05
  and
• 5:05
  can
• 5:05
  be
• 5:06
  resold
• 5:06
  on
• 5:06
  the
• 5:07
  regular
• 5:07
  share
• 5:07
  market
• 5:08
  like
• 5:08
  any
• 5:09
  other
• 5:09
  stock,
• 5:10
  which
• 5:10
  is
• 5:10
  why
• 5:10
  we
• 5:11
  have
• 5:11
  the
• 5:11
  offering
• 5:12
  price
• 5:13
  and
• 5:13
  then
• 5:14
  the
• 5:14
  opening
• 5:15
  price.
• 5:15
  The
• 5:16
  opening
• 5:16
  price
• 5:17
  is
• 5:17
  what
• 5:18
  everyone
• 5:18
  else
• 5:19
  will
• 5:19
  pay.
• 5:19
  Once
• 5:20
  the
• 5:20
  shares
• 5:20
  hit
• 5:20
  the
• 5:21
  share
• 5:21
  market
• 5:21
  for
• 5:22
  real,
• 5:23
  they
• 5:23
  can
• 5:23
  buy
• 5:23
  and
• 5:24
  sell
• 5:24
  from
• 5:24
  other
• 5:24
  investors.
• 5:25
  And
• 5:25
  we
• 5:26
  get
• 5:26
  that
• 5:26
  moment
• 5:26
  of
• 5:27
  the
• 5:27
  market
• 5:27
  deciding
• 5:28
  what
• 5:29
  those
• 5:29
  shares
• 5:29
  are
• 5:30
  truly
• 5:30
  worth
• 5:31
  based
• 5:31
  on
• 5:31
  how
• 5:32
  much
• 5:32
  people
• 5:32
  are
• 5:32
  competing
• 5:33
  for
• 5:33
  them.
• 5:34
  So
• 5:34
  who
• 5:35
  gets
• 5:35
  the
• 5:35
  offering
• 5:36
  price?
• 5:37
  It's
• 5:37
  often
• 5:37
  only
• 5:38
  available
• 5:38
  to
• 5:39
  certain
• 5:39
  investors
• 5:40
  and
• 5:40
  it's
• 5:40
  usually
• 5:41
  the
• 5:41
  big
• 5:41
  boys.
• 5:42
  I'm
• 5:42
  talking
• 5:43
  big
• 5:43
  funds,
• 5:44
  banks,
• 5:45
  pension
• 5:45
  managers,
• 5:47
  now,
• 5:47
  for
• 5:47
  the
• 5:47
  average
• 5:47
  IPO,
• 5:49
  90%
• 5:50
  of
• 5:50
  the
• 5:50
  shares
• 5:51
  go
• 5:51
  to
• 5:51
  those
• 5:51
  big
• 5:52
  fellas,
• 5:52
  retail
• 5:53
  investors,
• 5:54
  that's
• 5:54
  you
• 5:54
  or
• 5:55
  me
• 5:55
  with
• 5:55
  our
• 5:55
  apps,
• 5:56
  might
• 5:56
  have
• 5:57
  10%
• 5:58
  of
• 5:58
  those
• 5:58
  IPO
• 5:59
  shares
• 5:59
  set
• 6:00
  aside
• 6:00
  for
• 6:00
  us
• 6:01
  that
• 6:01
  we
• 6:01
  can
• 6:01
  sign
• 6:02
  up
• 6:02
  to
• 6:02
  get
• 6:02
  at
• 6:03
  the
• 6:03
  offering
• 6:03
  price.
• 6:04
  And
• 6:04
  you
• 6:05
  might
• 6:05
  say,
• 6:06
  hey,
• 6:06
  I'd
• 6:07
  like
• 6:07
  to
• 6:07
  buy
• 6:08
  this
• 6:08
  many
• 6:08
  shares
• 6:09
  at
• 6:09
  the
• 6:09
  offering
• 6:10
  price.
• 6:10
  And
• 6:11
  then
• 6:11
  the
• 6:11
  company
• 6:11
  comes
• 6:12
  back
• 6:12
  and
• 6:12
  says,
• 6:13
  yeah,
• 6:13
  we've
• 6:13
  got
• 6:14
  too
• 6:14
  many
• 6:14
  people
• 6:14
  wanting
• 6:15
  to
• 6:15
  buy
• 6:15
  it,
• 6:16
  so
• 6:16
  we're
• 6:16
  going
• 6:16
  to
• 6:17
  give
• 6:17
  you
• 6:17
  less
• 6:17
  than
• 6:17
  that.
• 6:18
  Like
• 6:18
  it
• 6:19
  or
• 6:19
  lump
• 6:19
  it.
• 6:20
  If
• 6:20
  you
• 6:21
  want
• 6:21
  more,
• 6:21
  well,
• 6:22
  you'll
• 6:22
  have
• 6:22
  to
• 6:22
  duke
• 6:22
  it
• 6:23
  out
• 6:23
  once
• 6:23
  it
• 6:23
  hits
• 6:23
  the
• 6:24
  open
• 6:24
  share
• 6:24
  market.
• 6:25
  And
• 6:25
  if
• 6:25
  it's
• 6:26
  a
• 6:26
  good
• 6:26
  buy,
• 6:26
  well,
• 6:27
  yeah,
• 6:28
  there
• 6:28
  might
• 6:28
  be
• 6:28
  lots
• 6:29
  of
• 6:29
  people
• 6:29
  wanting
• 6:29
  in
• 6:30
  on
• 6:30
  it.
• 6:31
  This
• 6:31
  time
• 6:31
  though,
• 6:32
  SpaceX
• 6:33
  is
• 6:33
  doing
• 6:33
  something
• 6:34
  a
• 6:34
  little
• 6:34
  different.
• 6:35
  On
• 6:36
  the
• 6:36
  face
• 6:36
  of
• 6:36
  it,
• 6:36
  it
• 6:37
  looks
• 6:37
  like
• 6:37
  a
• 6:37
  real
• 6:38
  man
• 6:38
  of
• 6:38
  the
• 6:38
  people
• 6:38
  moment
• 6:39
  underneath.
• 6:40
  I
• 6:41
  think
• 6:41
  it's
• 6:41
  a
• 6:41
  pretty
• 6:42
  cynical
• 6:42
  play
• 6:42
  for
• 6:43
  more
• 6:43
  money.
• 6:44
  Now,
• 6:44
  to
• 6:45
  be
• 6:45
  fair,
• 6:45
  SpaceX
• 6:46
  is
• 6:47
  genuinely
• 6:47
  breaking
• 6:48
  from
• 6:48
  tradition
• 6:49
  here.
• 6:49
  The
• 6:50
  little
• 6:50
  guys,
• 6:50
  the
• 6:51
  retail
• 6:51
  investors,
• 6:52
  are
• 6:52
  getting
• 6:52
  triple
• 6:53
  the
• 6:53
  opportunity
• 6:54
  with
• 6:54
  their
• 6:54
  IPO.
• 6:55
  Instead
• 6:56
  of
• 6:56
  10%,
• 6:57
  we're
• 6:58
  apparently
• 6:58
  able
• 6:58
  to
• 6:59
  buy
• 6:59
  up
• 6:59
  to
• 7:00
  30%
• 7:01
  of
• 7:01
  the
• 7:01
  offering.
• 7:02
  Those
• 7:02
  shares
• 7:03
  are
• 7:03
  being
• 7:03
  sold
• 7:03
  directly
• 7:04
  through
• 7:04
  places
• 7:05
  like
• 7:05
  Robinhood,
• 7:06
  Fidelity
• 7:07
  and
• 7:07
  Charles
• 7:07
  Schwab
• 7:08
  at
• 7:08
  the
• 7:09
  same
• 7:09
  time
• 7:09
  as
• 7:09
  the
• 7:09
  big
• 7:10
  institutional
• 7:10
  players
• 7:11
  get
• 7:11
  their
• 7:11
  shot
• 7:12
  and
• 7:12
  for
• 7:13
  the
• 7:13
  same
• 7:13
  IPO
• 7:14
  price.
• 7:14
  My
• 7:15
  first
• 7:15
  thought,
• 7:16
  love
• 7:16
  to
• 7:17
  see
• 7:17
  it.
• 7:18
  My
• 7:18
  second
• 7:18
  thought,
• 7:20
  when
• 7:20
  I
• 7:20
  compare
• 7:21
  this
• 7:21
  to
• 7:21
  Musk's
• 7:22
  other
• 7:22
  company
• 7:23
  and
• 7:23
  how
• 7:23
  Tesla
• 7:24
  stock
• 7:24
  performs,
• 7:25
  it
• 7:25
  feels
• 7:26
  a
• 7:26
  little
• 7:26
  less
• 7:27
  like
• 7:27
  a
• 7:27
  generous
• 7:28
  move.
• 7:29
  Because
• 7:29
  Musk
• 7:30
  didn't
• 7:30
  get
• 7:30
  to
• 7:31
  be
• 7:31
  the
• 7:31
  world's
• 7:31
  richest
• 7:32
  man
• 7:32
  by
• 7:32
  being
• 7:32
  naive
• 7:33
  about
• 7:33
  what
• 7:34
  motivates
• 7:34
  people.
• 7:35
  So
• 7:36
  the
• 7:36
  Tesla
• 7:37
  tussle.
• 7:38
  Tesla
• 7:39
  is
• 7:39
  widely
• 7:39
  considered
• 7:40
  overhyped
• 7:41
  and
• 7:41
  overvalued.
• 7:43
  That's
• 7:43
  not
• 7:43
  me
• 7:44
  and
• 7:44
  my
• 7:44
  bias
• 7:44
  speaking,
• 7:45
  not
• 7:45
  this
• 7:46
  time
• 7:46
  at
• 7:46
  least.
• 7:47
  Typically
• 7:48
  they
• 7:48
  say
• 7:48
  a
• 7:49
  good
• 7:49
  price
• 7:49
  to
• 7:49
  earnings
• 7:50
  ratio
• 7:50
  is
• 7:51
  around
• 7:51
  20
• 7:52
  to
• 7:52
  25,
• 7:53
  which
• 7:53
  is
• 7:53
  where
• 7:53
  you
• 7:54
  look
• 7:54
  at
• 7:54
  how
• 7:54
  much
• 7:54
  it
• 7:55
  costs
• 7:55
  to
• 7:55
  buy
• 7:55
  a
• 7:55
  share
• 7:56
  versus
• 7:57
  how
• 7:57
  much
• 7:57
  you
• 7:57
  are
• 7:58
  likely
• 7:58
  to
• 7:58
  earn
• 7:58
  from
• 7:59
  it.
• 7:59
  Tesla,
• 8:01
  at
• 8:01
  the
• 8:01
  time
• 8:02
  of
• 8:02
  writing,
• 8:02
  their
• 8:03
  price
• 8:03
  to
• 8:03
  earnings
• 8:04
  is
• 8:04
  390.
• 8:06
  Over
• 8:06
  the
• 8:07
  last
• 8:07
  10
• 8:07
  years
• 8:08
  they've
• 8:09
  averaged
• 8:10
  160.
• 8:11
  That
• 8:12
  is
• 8:12
  not
• 8:12
  normal.
• 8:13
  Very
• 8:14
  not
• 8:14
  normal.
• 8:15
  You're
• 8:15
  paying
• 8:15
  in
• 8:16
  way
• 8:16
  higher
• 8:17
  than
• 8:17
  what
• 8:17
  you
• 8:17
  get
• 8:18
  back.
• 8:19
  So
• 8:19
  yes,
• 8:20
  I'm
• 8:20
  confident
• 8:21
  in
• 8:21
  calling
• 8:22
  them
• 8:22
  overvalued,
• 8:23
  no
• 8:23
  matter
• 8:24
  how
• 8:24
  much
• 8:24
  people
• 8:25
  might
• 8:25
  be
• 8:25
  interested
• 8:25
  in
• 8:26
  the
• 8:26
  company
• 8:26
  and
• 8:27
  its
• 8:27
  future
• 8:27
  potential.
• 8:29
  What's
• 8:29
  propping
• 8:29
  up
• 8:30
  this
• 8:30
  very
• 8:30
  high
• 8:31
  share
• 8:31
  price?
• 8:32
  Retail
• 8:33
  investors.
• 8:34
  From
• 8:34
  what
• 8:35
  I
• 8:35
  can
• 8:35
  tell,
• 8:35
  it's
• 8:36
  the
• 8:36
  man,
• 8:36
  the
• 8:36
  myth,
• 8:36
  the
• 8:37
  legend
• 8:37
  that
• 8:37
  keeps
• 8:38
  them
• 8:38
  investing.
• 8:39
  Musk
• 8:39
  has
• 8:39
  a
• 8:40
  dedicated
• 8:40
  fan
• 8:41
  base
• 8:41
  who
• 8:41
  believe
• 8:42
  in
• 8:42
  what
• 8:42
  he's
• 8:42
  selling,
• 8:43
  that
• 8:43
  he's
• 8:43
  a
• 8:44
  visionary
• 8:44
  that
• 8:44
  sees
• 8:45
  things
• 8:45
  other
• 8:46
  people
• 8:46
  don't.
• 8:47
  I
• 8:48
  for
• 8:48
  sure
• 8:48
  don't
• 8:49
  see
• 8:49
  him
• 8:49
  that
• 8:49
  way.
• 8:50
  But
• 8:50
  to
• 8:50
  each
• 8:50
  their
• 8:51
  own.
• 8:52
  The
• 8:52
  institutional
• 8:53
  investors,
• 8:53
  well,
• 8:54
  they've
• 8:54
  been
• 8:55
  heading
• 8:55
  for
• 8:55
  the
• 8:55
  exits
• 8:56
  for
• 8:56
  a
• 8:56
  long
• 8:57
  time
• 8:57
  now.
• 8:58
  The
• 8:58
  big
• 8:58
  companies
• 8:59
  with
• 8:59
  their
• 9:00
  teams
• 9:00
  of
• 9:00
  analysts
• 9:01
  have
• 9:01
  been
• 9:01
  ditching
• 9:02
  Tesla
• 9:03
  in
• 9:03
  big
• 9:04
  numbers.
• 9:05
  UBS
• 9:05
  Asset
• 9:06
  Management
• 9:06
  cut
• 9:06
  its
• 9:07
  Tesla
• 9:07
  stake
• 9:07
  by
• 9:08
  about
• 9:08
  74%.
• 9:10
  Nomura
• 9:11
  reduced
• 9:11
  its
• 9:11
  position
• 9:12
  by
• 9:12
  more
• 9:12
  than
• 9:12
  80%.
• 9:13
  Goldman
• 9:14
  Sachs
• 9:14
  and
• 9:15
  Morgan
• 9:15
  Stanley
• 9:15
  both
• 9:16
  cut
• 9:16
  down
• 9:16
  their
• 9:17
  investments.
• 9:18
  Retail
• 9:19
  is
• 9:19
  piling
• 9:19
  in.
• 9:20
  Institutions
• 9:21
  are
• 9:22
  walking
• 9:22
  out.
• 9:24
  So
• 9:24
  Musk
• 9:25
  knows
• 9:25
  who
• 9:26
  his
• 9:26
  most
• 9:26
  loyal
• 9:26
  buyers
• 9:27
  are
• 9:27
  and
• 9:28
  when.
• 9:28
  He's
• 9:28
  looking
• 9:28
  to
• 9:29
  make
• 9:29
  Big
• 9:29
  Bang
• 9:30
  for
• 9:30
  his
• 9:30
  buck
• 9:30
  on
• 9:30
  ipo,
• 9:32
  he
• 9:32
  wants
• 9:32
  to
• 9:32
  get
• 9:32
  the
• 9:33
  best
• 9:33
  result
• 9:33
  possible,
• 9:34
  offering
• 9:35
  retail
• 9:35
  investors
• 9:36
  a
• 9:36
  bigger
• 9:37
  slice
• 9:37
  of
• 9:37
  the
• 9:37
  SpaceX
• 9:38
  IPO
• 9:39
  at
• 9:39
  the
• 9:39
  same
• 9:39
  price
• 9:40
  as
• 9:40
  the
• 9:40
  big
• 9:41
  players.
• 9:42
  That's
• 9:43
  not
• 9:43
  necessarily
• 9:44
  generosity,
• 9:45
  it's
• 9:45
  strategy.
• 9:46
  And
• 9:47
  knowing
• 9:47
  your
• 9:47
  audience
• 9:49
  now,
• 9:49
  whether
• 9:50
  or
• 9:50
  not
• 9:50
  you
• 9:50
  should
• 9:51
  buy
• 9:51
  it.
• 9:52
  Well,
• 9:52
  this
• 9:52
  is
• 9:52
  one
• 9:53
  factor,
• 9:53
  but
• 9:53
  it's
• 9:54
  not
• 9:54
  the
• 9:54
  whole
• 9:55
  story.
• 9:55
  I
• 9:56
  have
• 9:56
  dived
• 9:56
  into
• 9:57
  that
• 9:57
  in
• 9:57
  a
• 9:57
  second
• 9:58
  edition
• 9:58
  of
• 9:59
  the
• 9:59
  Market
• 9:59
  Memo,
• 10:00
  which
• 10:00
  you
• 10:00
  can
• 10:01
  find
• 10:01
  online
• 10:01
  now.
• 10:02
  You
• 10:03
  can
• 10:03
  sign
• 10:03
  up
• 10:03
  at
• 10:04
  Francisco
• 10:04
  Co
• 10:05
  NZ
• 10:05
  Invest,
• 10:06
  or
• 10:07
  you
• 10:07
  can
• 10:07
  head
• 10:07
  to
• 10:07
  my
• 10:08
  substack
• 10:09
  Market
• 10:09
  Memo
• 10:10
  Weekly
• 10:10
  and
• 10:10
  we'll
• 10:11
  look
• 10:11
  at
• 10:11
  how
• 10:11
  you
• 10:11
  weigh
• 10:11
  up
• 10:11
  IPOs,
• 10:12
  what
• 10:13
  it's
• 10:13
  doing
• 10:13
  to
• 10:13
  index
• 10:14
  funds,
• 10:14
  and
• 10:14
  even
• 10:15
  your
• 10:15
  kiwisaver.
• 10:17
  Until
• 10:17
  then,
• 10:17
  enjoy
• 10:18
  keeping
• 10:18
  an
• 10:18
  eye
• 10:18
  on
• 10:18
  the
• 10:19
  share
• 10:19
  market.
• 10:19
  For
• 10:19
  today,
• 10:19
  I
• 10:20
  certainly
• 10:20
  will
• 10:20
  have
• 10:21
  my
• 10:21
  popcorn
• 10:21
  to
• 10:22
  hand.
• 10:22
  Until
• 10:22
  next
• 10:23
  time,
• 10:23
  have
• 10:23
  a
• 10:23
  great
• 10:23
  day.
• 10:24
  This
• 10:24
  podcast
• 10:25
  can
• 10:25
  only
• 10:25
  give
• 10:26
  you
• 10:26
  general
• 10:26
  information
• 10:27
  about
• 10:27
  how
• 10:27
  things
• 10:28
  work
• 10:28
  in
• 10:28
  most
• 10:29
  situations.
• 10:29
  It's
• 10:30
  not
• 10:30
  individual
• 10:31
  financial
• 10:31
  advice.
• 10:32
  If
• 10:32
  you're
• 10:32
  after
• 10:33
  that,
• 10:33
  a
• 10:33
  financial
• 10:33
  advisor
• 10:34
  is
• 10:34
  always
• 10:35
  the
• 10:35
  best
• 10:35
  bet.