[0:00] Well, holy smokes, it is happening.
[0:02] Well, so far everything is lining up
[0:04] exactly as we would anticipate for
[0:08] SpaceX to pull off one of the craziest
[0:12] things ever. And people are going to
[0:14] lose their minds if this happens, but I
[0:17] think it will. And honestly, Elon Musk
[0:21] basically just sent up a hot air balloon
[0:24] or a big balloon, whatever you call it,
[0:26] when you send up a signal flare into the
[0:28] sky there. How about that? We were like,
[0:29] "Yeah, boys and girls, I'm down to do
[0:31] this." Literally this morning, we got
[0:34] news that reiterates
[0:37] what I think Elon is doing. Holy smokes.
[0:41] Let's get right into this. I'm me,
[0:43] Kevin, in case you don't know. We've
[0:44] been analyzing SpaceX and the prediction
[0:47] has been that SpaceX is going to meme up
[0:52] in stock price for the first 15 to 30
[0:55] days because why? Well, because you
[0:58] can't have insiders sell because they're
[1:00] all locked up. You've got NASDAQ
[1:02] inclusion coming. You just opened up the
[1:05] option market on it. You've got other
[1:08] people like the cursor folks who are
[1:10] about to get paid $60 billion
[1:13] in SpaceX shares. They're not going to
[1:16] be able to sell until at bare minimum
[1:19] sometime later in Q3. and you're at peak
[1:23] hype for Elon Musk becoming a
[1:26] trillionaire and honestly a
[1:29] record-breaking SpaceX IPO with well not
[1:32] only being the largest IPO ever but also
[1:34] being the largest IPO with the smallest
[1:36] freaking float ever like 4% of this
[1:38] company's is under 5% of this company's
[1:41] shares are outstanding which makes it
[1:43] the perfect meme play but what was our
[1:48] prediction our prediction was that Elon
[1:50] Musk is going to take over Tesla. In
[1:55] fact, take a look at this spreadsheet.
[1:57] This is the spreadsheet we made weeks
[1:58] ago. We predicted that SpaceX would IPO
[2:02] at about a $2 trillion valuation and
[2:06] that within 90 days they would get to
[2:08] about a $4 trillion valuation. And we
[2:12] talked a little bit about how
[2:14] potentially SpaceX could raise money to
[2:16] take uh Tesla private, but I actually
[2:20] think it would be a lot easier for
[2:22] everybody who owns Tesla shares to
[2:25] basically just get handed SpaceX shares.
[2:28] You lose your Tesla shares. Now all of a
[2:30] sudden, X holding holds everything. And
[2:32] boom, what happens? Elon now has full
[2:36] control. Elon wants majority control
[2:39] over Tesla. he would get majority
[2:41] control over a Tesla, which would mean
[2:43] he would be in charge of the Optimus
[2:45] robot army once it actually gets out of
[2:47] R&D. Now, what's remarkable is we just
[2:52] got an SEC filing this morning that sets
[2:55] up the playbook again. And remember,
[2:59] like two weeks before the IPO, there was
[3:02] talk inside of the company about SpaceX
[3:04] acquiring Tesla, which made the news.
[3:06] And then I'm like, see, this is what
[3:08] we've been talking about. But it's
[3:10] coming. It's happening. But watch this
[3:12] filing literally from today. This is an
[3:15] SEC filing in AK that was literally
[3:18] posted today on June 16th. That's today.
[3:20] Here you've got Space X Technology
[3:23] Company acquiring Cursor. Okay, we
[3:27] already knew that was going to happen.
[3:28] We had that $10 billion risk that if we
[3:31] didn't end up acquiring Cursor, we would
[3:32] end up seeing a $10 billion loss over at
[3:35] SpaceX. But some of that was contract
[3:36] value anyway for services. Well, today
[3:38] they're making the announcement that you
[3:40] know what, we're going to execute our
[3:41] option. We are going to end up buying
[3:42] Cursor for $60 billion, which you might
[3:45] recall that SpaceX happened to just
[3:47] raise $75 billion at IPO plus the green
[3:51] shoes. So, just over $85 billion. SpaceX
[3:54] employees actually wore green shoes at
[3:57] the uh NASDAQ ringing of the bell. I say
[4:00] quote unquote because it's a computer
[4:02] screen as opposed to like an actual bell
[4:03] that rings like at the New York Stock
[4:04] Exchange. But anyway, uh the green shoe
[4:07] option is basically when underwriters
[4:09] like a Morgan Stanley or whatever have
[4:11] the option of buying more shares at IPO
[4:13] price, which they love executing when
[4:16] the stock goes up. Well, of course, this
[4:18] meme stock went up because there's
[4:20] massive momentum here, right? Uh and so
[4:22] they executed that, which basically
[4:24] means SpaceX built in another $10
[4:26] billion of fundraising. So now SpaceX
[4:28] has $85 billion. And when I first saw
[4:30] this news, I'm like, "Oh, okay. They're
[4:32] going to execute the option. They're
[4:33] going to buy Cursor. They're going to
[4:34] give Kurser $60 billion of cash.
[4:37] Wrong. SpaceX is going to keep the $85
[4:40] billion of cash. And instead, what
[4:42] they're going to do right here is
[4:44] they're going to pay cursor class A
[4:47] common shares, which are the ones that
[4:49] don't have the voting power that Elon
[4:51] has, the super voting shares, right? The
[4:53] B shares. But anyway, based on an
[4:55] implied equity valuation of $60 billion
[4:58] for Cursor and they're going to get
[5:00] shares based on the volume weighted
[5:03] average closing price over 7 days
[5:05] immediately prior to the merger closing.
[5:07] So basically, let's say the merger
[5:09] closes at the end of August, whatever
[5:11] SpaceX was trading for on a volume
[5:15] average basis, volume weighted average
[5:17] basis over the 7 days before that,
[5:19] that's what uh people were going to be b
[5:22] getting their SpaceX shares at. So
[5:23] whether that's $200 or $175 or $300,
[5:26] whatever, right? That's the price people
[5:28] are going to get over at Kurser. Now,
[5:30] those coaster folks are not able to sell
[5:32] their SpaceX shares now because they
[5:35] don't have them yet. But they're about
[5:37] to get $60 billion of SpaceX shares kind
[5:40] of, you know, probably at the top of
[5:41] SpaceX pricing, which is brilliant for
[5:44] SpaceX, but the cursor people are going
[5:47] to know that and they're going to want
[5:48] to be like, you know, might want to
[5:50] either hedge this or sell some of these
[5:52] shares. And including insider lockups,
[5:54] employees, venture capitalists who are
[5:56] way up on this freaking stock. like, you
[5:58] know, if you're already up, like my
[6:00] venture for capital company's up like 5x
[6:02] on our SpaceX shares. Uh, you know, do
[6:05] we want to hang out for a 6x? I don't
[6:08] know, maybe it'll be a 6x that lock up
[6:10] is uh, you know, is actually available.
[6:12] But the point is, you've got uh a lot of
[6:16] people including now cursor getting
[6:17] these shares and Elon Musk through this
[6:19] SEC filing just basically said the quiet
[6:22] part out loud. Hey, if we're going to go
[6:23] buy another company, we're just going to
[6:25] issue SpaceX shares. So now put the
[6:27] pieces of the puzzle together. You know,
[6:30] four or five weeks ago, Kevin makes a
[6:31] video and says, "Hey,
[6:33] Elon wants control of Tesla. We know
[6:35] that. Wouldn't it be interesting if he
[6:37] just issued SpaceX shares and acquired
[6:40] Tesla with SpaceX shares?" Then two
[6:43] weeks after I made that video, we hear a
[6:45] CNBC story. Oh, SpaceX is actually
[6:48] quietly thinking about how they could
[6:49] acquire Tesla.
[6:51] Elon also happened to accidentally call
[6:54] SpaceX Tesla when he was at the JP
[6:56] Morgan meeting with Jamie Diamond at the
[6:58] top of the tower. Well, he actually only
[7:00] showed up virtually. Kind of hilarious.
[7:03] He was on the TV screen, you know,
[7:05] zooming in. Uh his mom was at the event,
[7:08] but anyway, uh he accidentally called
[7:11] SpaceX Tesla there. If you watch it or
[7:13] just take my word for it, that's what
[7:14] happened, which is very interesting. And
[7:17] now we have this SEC filing showing, oh
[7:20] yeah, we're buying companies using our
[7:22] shares because the share price is
[7:23] memeing. So what's actually happening
[7:26] right now to SpaceX stock? It is almost
[7:28] a $3 trillion company. Oh shoot, we
[7:32] might be closer to a 10x then. Yeah, cuz
[7:33] we got into this company at like $330
[7:36] billion, something like that. Maybe it
[7:37] was 375. I I I the point is there's so
[7:40] much dilution that's happened. We won't
[7:42] actually know until we get the shares.
[7:43] But that's almost a freaking tedagger on
[7:46] our SP SpaceX shares. So I like seeing
[7:48] the meme. But I also want to see the
[7:51] dollar holla in my pocket.
[7:53] But you can't cuz there's a lock up. But
[7:55] anyway, I've been very transparent about
[7:57] all this the whole process. First 15 to
[8:00] 30 days, I expect the meme show for
[8:03] SpaceX, which is exactly the perfect
[8:05] time to go buy Tesla, especially since
[8:08] Tesla's down. See, look at this. Tesla's
[8:10] literally down on a day. SpaceX is
[8:12] memeing almost at $3 trillion. SpaceX is
[8:15] almost two Teslas. Uh Tesla's sitting at
[8:18] about $1.5 trillion. I've got him at 1.6
[8:22] on my spreadsheet here. I think this is
[8:24] happening. So, so far everything is
[8:27] going according to plan. And the filing
[8:29] today on Cursor, in my opinion, gives me
[8:31] more of a reiteration, not less, that
[8:34] this is going to happen because Elon
[8:35] Musk wants control of that robot army.
[8:38] And honestly, people probably gonna vote
[8:40] to give him that because yes, it would
[8:42] end up being subject to a vote, but
[8:46] I I mean, I actually think a lot of
[8:47] people are going to vote for it. Not
[8:48] everyone, you know, some people over at
[8:50] Tesla are going to be, man, this is
[8:51] crap. I want to keep my Tesla Tesla, my
[8:53] SpaceX, SpaceX. Yes, some people are
[8:55] going to say that, but I don't think
[8:58] it's going to be enough uh for that vote
[9:00] not to go through that. So, that's my
[9:01] take. Thank you so much for watching
[9:03] here. Uh if you want, I'm going to post
[9:04] some more stories on my Instagram. You
[9:06] can follow me there. You can follow me
[9:07] on uh Twitter as well. I try to post on
[9:09] Instagram at least um daily. And uh
[9:12] consider subscribing over here. Share
[9:13] the video if you found it useful and
[9:14] we'll see you in the next one. Goodbye.
[9:16] Good luck.
[9:16] >> Why not advertise these things that you
[9:18] told us here? I feel like nobody else
[9:19] knows about this.
[9:20] >> We'll we'll try a little advertising and
[9:22] see how it goes.
[9:22] >> Congratulations, man. You have done so
[9:24] much. People love you. People look up to
[9:25] you.
[9:26] >> Kevin Pra there, financial analyst and
[9:28] YouTuber. Meet Kevin. Always great to
[9:30] get your take.