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Space X IPO

A few days ago the Space X IPO happened, and two things are remarkable.  One expected, the share price of Space X fell a bit, its down from it $218 peak (issued at $200) down to $156 at closing on the 23rd of June.  The second is that Space X just borrowed a lot of money (actually drew down facilities it already at hand).  The second could (maybe) be caused by the first, it takes a few days for the 75 billion Space X raised to make its way from the various brokers to Space X coffers, so the drawdown could be related to that.  HOWEVER, it seems that SpaceX little mentioned AI foray cash consumption is even higher than anticipated.

For Space X the real savior is the inclusion in the NASDAQ index, in particular the QQQ, it got a special one of exception of the two rules for inclusion (be listed for at least six months and profitable).  Space X has been listed for 10 days and is not profitable, nor is there a clear path to profits – the forward looking statements still show that the company will lose billions going forward.  Part of the problem is the AI venture.  There is no doubt in anyone's mind that the current spending in AI is not only unsustainable it's bound to cause trouble, the question is how much of the $1.5 trillion so far invested is a total loss and what is good?  

Investors are concerned when it came to light that despite the Telsa's boardroom turning down the investment in SpaceX's AI venture that the company still invested $ 2 billion.   

This may all seem disjointed, and it is, on purpose, because what happened at Space X and Tesla is both strange and alarming, but could be entirely reasonable and LEGAL.  It's important not to confuse things in finance or make statements.  The truth is that the shares of Space X are in free fall, a 25% drop in the share price is about double the average clawback after an IPO, average is 12%.  The question is, Is it over, or is short interest ganging up on the maybe short term cash difficulty Space X is facing.  I don't know and I have no skin in the game.   


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