7 ms·
SpaceX isn't more secure than the government because the government might bail it out in the future, that makes no logical sense. Obviously SpaceX is a higher d
by rurp 1mo ago
SpaceX isn't more secure than the government because the government might bail it out in the future, that makes no logical sense. Obviously SpaceX is a higher default risk than the entity supposedly backstopping it.
Not to mention that stock holders are hardly guaranteed to be made whole if the company crashes hard enough to need a bailout.
- zrobotics 1mo agoPlus, couldn't a theoretical bailout come with pretty onerous terms and focus on just the actual space launch & starlink divisions? It isn't hard to argue that they are as critical of a defense contractor as Lockheed. However, supposedly ~80% of the value is AI and Twitter, which certainly aren't in the same category. I agree that stockholders would likely not come out well at all in a theoretical bailout. A bailout would likely involve chapter 11 or something similar, and shareholders would be last in line behind other creditors. They might get additional protection if it looked like the collapse of the company would significantly affect retirement and pension funds, but that hypothetical certainly doesn't give me any additional faith in the stock.