Why Elon Musk's SpaceX is a 'three-engine empire' ahead of IPO
00:00 Speaker A Eva, it is great to have you. So, a lot of viewers watching this, Eva, maybe they're not totally familiar with the SpaceX business model, right? You say it like this, you say SpaceX is a three engine empire. Break that down for me. What do you mean by that? 00:13 Eva It reminds us of the days of Rockefeller and Vanderbilt. We believe Elon Musk is the greatest entrepreneur of all time because he built the whole supply chain. It's a three engine empire. You have SpaceX core, which is responsible for 90% of all mass to orbit. That's not the US number, it's a global. 90% of all mass to orbit goes to orbit because of SpaceX. Then you and and it's the most cost efficient and efficient rocket operator out there. 00:46 Eva They've dropped the cost from $54,000 per kilogram down to 2 to 3,000 and the goal is with Starship to get to $100 per kilogram. That's that's unbelievable. So this is the core, SpaceX core. Then we have the SpaceX AI now, the AI arm, which is important. The way we see it is when it comes to LLMs, they don't have a real mode because it's really easy to replicate an LLM. 01:14 Eva But if you have the if you control the infrastructure around it, if you have data centers up in the space, then you actually have a mode and then you actually charge your competition to use your infrastructure. So, to us, SpaceX AI has a mode because it is an AI model with an actual um infrastructure to support it. And the third empire is Starlink. We're speaking about 90, I'm sorry, 10 million subscribers uh in six years so fast. 01:46 Eva Then you have 10,000 satellites in low Earth orbit. And we're speaking about a company that has leapfrogged uh just like mobile mobile did with with landlines and has bypassed all the telecom competition. Their margins are north of 60%. So they're two to three times the telecom industry. It is a very efficient, it is the future of telecommunication and the in all fairness the the bureaucratic companies like uh the AT&T and T-Mobile, they have no chance to compete with Starling. 02:04 Speaker A How much of the excitement, Eva about SpaceX is really sort of excitement about Elon Musk himself? For you, it sounds like it's an important part of the story. 02:13 Eva It is an important. So we use a VC model. I love the question because we use a VC model when we invest in public markets. Our whole research originated in the private market. So we invest in public companies like VC's do and the criteria we look at are many times qualitative. So we convert them to numbers, but they are criteria that VC's look at. 02:44 Eva And so it is important to have a leader that is charismatic to us. Elon Musk is the new Vanderbilt, the new Rockefeller, um the new Carnegie. We believe is the greatest entrepreneur, certainly of our time and perhaps of all time. and it's a key it it is super important to have a great leader in a company and he he is the reason why SpaceX is what it is now. 03:00 Speaker A This ETF you're offering, Eva, just explain that and what are people buying exactly? Like if I buy there, how much exposure really, actually do I have to SpaceX there? 03:10 Eva Yes, so we have 230 million of SpaceX exposure in our XSOV ETF. Uh that's about 20% of our ETF is in SpaceX. So we are the first ETF, we pioneered the structure and the reason is we because our VC lens let let us do it because we were looking at the public market, we wanted to invest in companies that we believe will be the next magnificent seven. For example, we were in Nvidia when it was a $5 stock. 03:45 Eva So now the the the the value set has moved. We're seeing a better opportunity set in the private market. So we were trying to invest in these companies as early as possible to give investors all the value creation and that happens before the IPO. And so it was a natural extension to our VC model to go from public to private, using the same VC model lens. We call it the entrepreneur factor and we use exactly the same model. We just added to our universe the private companies that are large gap and we think they have potential to be the next magnificent seven. 04:19 Speaker A Eva, great to have you on the show today, especially on set. Thanks for your time. 04:24 Eva Thank you for having me.
