alt Hacker NewsThis would be a horrible deal for Tesla investors.
Long-term investors would lose about 40% of their investment to subsidize the inflated valuation of X (bought by xAI), the inflated valuation of xAI (bought by SpaceX), and SpaceX (whose valuation is based on the assumption that demand for inference is effectively unlimited, and that everyone will prefer hardware in space over Earth).
The valuation of both companies was inflated prior to acquisition, and Tesla shareholders will be asked to dilute their investment by absorbing that cumulative inflation.
Not even to mention that Musk would have exclusive control over the entire conglomerate, with not even the pretense of a Board to check his power.
When even Steven Mark Ryan is like "let's pump the breaks a little bit," you know it's bad.
Replies
> SpaceX (whose valuation is based on the assumption that demand for inference is effectively unlimited, and that everyone will prefer hardware in space over Earth).
Well, that and being the only reusable rocket company ever with an even bigger version on the horizon and a global Internet service that's about to get a whole lot better thanks to aforementioned rocket. Both of which are hugely profitable.
It’s about Elon’s control over these companies. Creating a valuable company with durable revenue that produces products that the market actually wants, with stable governance by a board representing the shareholders of the company? Bah! What am I, a sucker?
He wants control, so that he can use investor’s cash to do epic stuff like humanoid robots, cyber trucks, an AI that tells you that apartheid was actually cool, rocket cars, real life brain controlled robot bacon chungus, etc.