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Key details on the SpaceX IPO that made Elon Musk a trillionaire · THE DAILY BRIEF

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  Speaker 1: Three two one technician engines full power and lift off
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  Speaker 1: of Falcon nine. Go SpaceX, Go starlink to all spacexers,
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  Speaker 1: new and old. Let's see what's out there. Occupy Mars.
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  Speaker 2: SpaceX launched its Falcon nine rockets earlier this morning from
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  Speaker 2: Cape Canaveral, Florida, for the rocket's six hundred and fiftieth mission.
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  Speaker 2: But it's not the company's only launch.
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  Speaker 3: Today.
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  Speaker 2: SpaceX is making its historic debut. The company began officially
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  Speaker 2: trading at about at above it's planned one hundred and
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  Speaker 2: thirty five dollars per share valuation. That puts its current
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  Speaker 2: market valuation almost above its initial one point seven to
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  Speaker 2: seven trillion dollars. But by our math, that makes Musk
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  Speaker 2: the world's first trillionaire. And while early private investor investors,
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  Speaker 2: i should say, will also make a lot of money
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  Speaker 2: so or thousands of SpaceX employees. Musks spoke about his
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  Speaker 2: company's ambitions right before going public.
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  Speaker 3: If you watch for over your are watching this, SpaceX
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  Speaker 3: wants to be able to take you to the Moon,
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  Speaker 3: take you to Mars, and ultimately beyond. And I'm confident
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  Speaker 3: at this point that with the incredible team that we
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  Speaker 3: have here at SpaceX that we will do that for you.
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  Speaker 2: All right, let's go live now to CBS to use
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  Speaker 2: money Watch correspondent Kelly Oh Grady, Kelly, thanks for your
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  Speaker 2: time today. Let's talk about the impact of this event.
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  Speaker 2: I got to say, firstly, when we talk about it,
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  Speaker 2: I'm just like, what are they saying IPO? Like, make
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  Speaker 2: it make sense to me? So for all of those
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  Speaker 2: people out there, like Americans who are not buying stocks,
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  Speaker 2: how can SpaceX shares actually affect them? Why should they
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  Speaker 2: care about this?
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  Speaker 4: Yeah? So, well, first you know IPO, it's an initial
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  Speaker 4: public offering. It's when a company that hasn't been listed
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  Speaker 4: on a stock market. It has been private, and yes
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  Speaker 4: they've had investors, but they've been private investors. Now it
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  Speaker 4: opens up and the average person like you and me,
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  Speaker 4: it becomes publicly available to buy some public ownership in
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  Speaker 4: the company. Now, this is a really exciting day because
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  Speaker 4: we haven't ever had an IPO of this magnitude, and
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  Speaker 4: we haven't really seen many major IPOs since the pandemic.
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  Speaker 4: There was really sort of aduldrooms there for that type
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  Speaker 4: of activity. But how this is going to impact the
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  Speaker 4: average American? There's two ways. I would say the long term,
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  Speaker 4: this is really the gateway to the space economy, where
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  Speaker 4: we have so many of the different things that we
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  Speaker 4: are talking about in our daily lives, like data centers,
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  Speaker 4: maybe even up in space rather than outside towns where
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  Speaker 4: people have shown a lot of frustration. Right, But that's
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  Speaker 4: a long term thing. This is just the company raising
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  Speaker 4: money to be able to do some of those things
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  Speaker 4: in the future. The more immediate impact is if maybe
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  Speaker 4: you're not someone that actually buys stocks, more of a
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  Speaker 4: day trader, but you might have a four to oh
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  Speaker 4: one k A lot of us do in this country,
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  Speaker 4: and the SpaceX stock is going to be fast tracked
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  Speaker 4: to what we call the Nasdaq one hundred and a
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  Speaker 4: number of index funds trade along the Nasdaq one hundred,
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  Speaker 4: and in fact, a lot of our four oh one
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  Speaker 4: k's have exposure to that. So you might actually have
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  Speaker 4: exposure to the SpaceX stock and you just don't even
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  Speaker 4: know it.
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  Speaker 2: See Kelly, this is why I like to have you here,
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  Speaker 2: because you make it make sense when it typically doesn't.
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  Speaker 2: All Right, So, several analysts they've questioned the valuation of
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  Speaker 2: space SpaceX ahead of the company going public, And the
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  Speaker 2: big question here is is it really worth more than
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  Speaker 2: a trillion dollars.
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  Speaker 4: Well, the market thinks so. And I like to think
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  Speaker 4: of this in two different ways. There is market cap
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  Speaker 4: market value of a company, and that is simply based
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  Speaker 4: on the share price and the number of shares outstanding.
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  Speaker 4: That is what comes together is multiply those two numbers
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  Speaker 4: and you get that over one trillion number right now.
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  Speaker 4: But then there's another way to value a company, and
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  Speaker 4: that's actually based on their financials, the enterprise value, the business,
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  Speaker 4: its value. And that's really going to be interesting because
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  Speaker 4: SpaceX is losing money right now, okay, and so we
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  Speaker 4: are going to get over the next couple of months,
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  Speaker 4: we're going to get their first time that they're going
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  Speaker 4: to have to report. A public company has to release
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  Speaker 4: their financials quarterly, so we're all going to be pouring
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  Speaker 4: through it, and that I think is going to be
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  Speaker 4: a really interesting moment where you see how the stock fluctuates.
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  Speaker 4: But by the way, it's also when it's an Elon
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  Speaker 4: Musk company, it's not really always about that company. It's
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  Speaker 4: about the man. How much do they think they want
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  Speaker 4: to bet on Elon Musk?
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  Speaker 3: Oh?
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  Speaker 2: Yeah, And speaking of the man, Musk now becomes the
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  Speaker 2: world's first trillionaire. Can you help us put that number
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  Speaker 2: into perspective? I like, I can't even wrap my head around.
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  Speaker 4: It, you know, right, it makes me think of the
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  Speaker 4: Austin Powers, like one billion, one trillion dollars. It seems
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  Speaker 4: so far away, right, But now we have someone who's
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  Speaker 4: actually worth that amount of money, at least on paper, right.
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  Speaker 4: You know, it's when you have money in the stock market,
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  Speaker 4: it's not like it's cash in the bank. But to
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  Speaker 4: put that in perspective economy, it's huge, right, Well, in
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  Speaker 4: twenty twenty five, the GDP sort of how much the
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  Speaker 4: US economy is worth thirty one trillion dollars. So sure,
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  Speaker 4: one trillion doesn't seem like that big in comparison to that,
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  Speaker 4: but that is the entirety of the economic activity in
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  Speaker 4: the United States for one year. So one trillion dollars
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  Speaker 4: for one person that is crazy.
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  Speaker 2: Is crazy, indeed. Kelly oh Grady, thank you so much
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  Speaker 2: for your time. We appreciate it. Have great