u/Secret_Quiet2583

New customer announcement soon? 👀

https://www.quiverquant.com/congresstrading/trade/House-P000197-219

Right now, the public float for SpaceX is 4.3% hence why SpaceX's valuation got so big so fast. I expect the share price will go up even more after the indexes and ETFs' money flows in. After the Q2 earnings and onward, employees and early investors will be able to sell +20% of their shares. This will create a spike in the supply of shares in the public market that will likely decrease the share price in the coming months. Since Elon's shares are locked for 1 year, to avoid taking a hit to his net worth, Elon will try to use his SpaceX shares as collateral to lend money from the banks, essentially cashing out his shares without necessarily selling them. This is where I think he'll use the money to acquire Intel. The bid should be at least 2x Intel's current valuation (~1.3T) to be attractive enough. Elon holds around 50% of SpaceX shares. To have them worth 1.3T, SpaceX's valuation needs to be 1.3 * 2 =2.6T, around 25% increase from the current price. This is doable with the low supply-high demand of public SpaceX shares and the incoming money from ETFs and indexes, not to mention there are many other ways to raise extra money from his stakes in other companies (Tesla) and from investors like Ellison, the Saudis, Apollo, similar to his Twitter acquisition. There were rumors of Elon eyeing to acquire Intel last year (https://finance.yahoo.com/news/intel-stock-soars-amid-buyout-121843027.html). The SpaceX IPO should give him enough liquidity to make the acquisition. Given how frustrated Elon has been with the lack of foundry capacity, acquiring Intel would give him access to that without having to wait +3 years for the Terafab to complete.

What do you guys think? Personally, I think Intel can grow to at least 2T given its value as a geopolitical hedge, low-cost packaging, and the promising Z-Angle Memory development, but realistically 1.3T is still a solid deal.