{"id":489,"date":"2026-05-26T22:36:56","date_gmt":"2026-05-26T22:36:56","guid":{"rendered":"https:\/\/nextaddressamerica.com\/?p=489"},"modified":"2026-05-26T22:36:56","modified_gmt":"2026-05-26T22:36:56","slug":"major-trump-funders-company-now-a-trainwreck","status":"publish","type":"post","link":"https:\/\/nextaddressamerica.com\/?p=489","title":{"rendered":"Major Trump funder’s company now a ‘trainwreck’"},"content":{"rendered":"
\n

Last week, Elon Musk\u2019s SpaceX released its IPO prospectus in preparation for going public in June, and now that experts have had a chance to pore through its 277 pages, one analyst has bad news for interested investors: the company is a \u201ctrainwreck.\u201d<\/p>\n

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This is according to Ed Elson, a prominent financial and tech analyst who is particularly well known among Gen-Z, who posted<\/u> on Tuesday, \u201cI read all 277 pages of SpaceX’s IPO filing so you don’t have to.\u201d His nutshell assessment was not optimistic: \u201cLosses up 700 percent. Revenue decelerating. 107x price-to-sales multiple. It’s a trainwreck.\u201d When you dig into its claims, he says, it\u2019s \u201cunserious, empty, hallucinatory, and borderline dishonest.\u201d<\/p>\n

Elson says that the fantastical elements of the filing are clear from the start. <\/p>\n

\u201cAfter eighteen images of rockets in space, we learn that the company\u2019s mission is \u2018to extend the light of consciousness to the stars,\u2019\u201d writes Elson. \u201cTo accomplish this, the company plans to advance humanity \u2018to Kardashev Type II status,\u2019 which is defined in the document as \u2018a civilization that harnesses the full energy output of its local star.\u2019 Only a few pages in and it\u2019s already starting to feel like an ayahuasca trip.\u201d<\/p>\n

This \u201cpsychedelic language,\u201d notes Elson, is peppered throughout the pitch, with \u201cThe light of consciousness\u201d mentioned ten different times, \u201chuman augmentation\u201d mentioned eleven times, and \u201cfirst principles\u201d twenty-seven times. \u201cAI gets a mind-boggling 1,251 mentions \u2014 more features than the word \u2018Jesus\u2019 gets in the Bible.\u201d<\/p>\n

\u201cOnce you arrive at the financials,\u201d he says, \u201cyou start to realize what the language is overcompensating for: awful numbers. The company generated $4.7 billion in Q1 2026, up only 15 percent from the year before (very low for an \u2018AI company\u2019). It also lost $4.3 billion, up 700 percent from the year before. That means the company is spending roughly twice as much as it makes (and on pace to explode those losses even more), while growing its topline six times slower than Nvidia and two times slower than my own podcast. There\u2019s no getting around it \u2014 these numbers are terrible.\u201d<\/p>\n

The numbers look even worse when you compare them to 2025. The company\u2019s revenue grew by 33 percent last year, meaning its business is actually decelerating. <\/p>\n

\u201cMeanwhile,\u201d notes Elson, \u201cnet losses came in at $4.9 billion, so the company is on track to lose four times more money than it did last year. I\u2019ll put it simply: slowing revenue + skyrocketing expenses = not good.\u201d<\/p>\n

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All of this is even more farcical in the context of the company\u2019s $2 trillion valuation, which Elson says does not reflect the actual financials. The stock will be priced at 107 times sales, making it one of the most expensive ever. As Elson notes, \u201cIt will be twice as valuable than Walmart while generating less revenue than Macy\u2019s,\u201d and when compared against other tech megacompanies that went public, the SpaceX valuation is \u201cinsane.\u201d As Elson explains, \u201cMeta went public at 28 times sales with 88 percent revenue growth. Google went public at 10 times sales with 234 percent growth. Put another way, SpaceX is growing seven times slower while asking for a multiple ten times higher.\u201d <\/p>\n

According to Elson, a closer analysis of the company\u2019s actual position places its valuation closer to $500 billion. Still a lot, but still 75 percent less than the suggested number. <\/p>\n

Other experts have raised their own concerns about the company\u2019s IPO. According to the New York Times<\/u>, SpaceX appears to be structured in a way that favors owner Elon Musk \u201cat the expense of other shareholders.\u201d And Barron\u2019s warns<\/u> that stock shoppers should invest at their \u201cown risk,\u201d noting that these types of high-profile IPOs tend to \u201cunderperform\u201d and deliver “volatility” resulting in \u201cnegative returns.”<\/p>\n

Musk \u2014 who donated at $288 million to elect President Donald Trump \u2014 has faced accusations that his appointment as a \u201cspecial government employee\u201d at the head of DOGE allowed him to act with conflicts of interest regarding SpaceX\u2019s government contracts. Government watchdogs<\/u> note that since taking office, more and more of NASA\u2019s funding has been diverted to Musk\u2019s company. <\/p>\n

Now, Musk is inviting the public to buy into that company, which Elson warns is more fantasy than business. <\/p>\n

\u201cThe only way to get yourself mentally to $2 trillion is to believe that every possible sci-fi objective will be achieved, from data centers in space to asteroid mining to building cities on Mars,\u201d he concludes. \u201cOnce you\u2019ve done that, you then have to convince yourself that each of those endeavors will also make money. There\u2019s optimism, and then there\u2019s delusion.\u201d<\/p>\n

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Last week, Elon Musk\u2019s SpaceX released its IPO prospectus in preparation for going public in June, and now that experts have had a chance to pore through its 277 pages, one analyst has bad news for interested investors: the company is a \u201ctrainwreck.\u201dThis is according to Ed Elson, a prominent financi…<\/p>\n","protected":false},"author":1,"featured_media":488,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[],"class_list":["post-489","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"yoast_head":"\nMajor Trump funder's company now a 'trainwreck' - Next Address America<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/nextaddressamerica.com\/?p=489\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Major Trump funder's company now a 'trainwreck' - 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