341–350 of 1001 posts
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Tesla is profitable, as a matter of public record. And SpaceX is, by all accounts, extremely profitable.
Tesla’s profits and market share has been declining for the past few years and it’s basically an overpriced meme stock.
You may not have noticed because positive Musk related news doesn't seem to make headlines anymore.
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Tesla isn't that profitable, but SpaceX is likely generating boatloads of cash. From what I can tell Starlink alone has a free positive cash flow of about $2 billion. I'm not sure what the launch business is worth, but it's likely a lot given the absence of domestic competition. I have a suspicion the reason Musk wanted to combine SpaceX and X.ai is the latter gives him losses to write off against all that cash from…
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Tesla is profitable, as a matter of public record. And SpaceX is, by all accounts, extremely profitable.
They had like $16B in revenue last year, half from Starlink. That’s just money in the door and the underwriters seem to think the business is worth $1.75T.
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You’ll pay massive penalties on that, another option is options (heh) but I’m not finance-literate enough to know how to pull it off.
You could just buy deep out of money SP500 puts expiring in 1+ year. That way you would be "insured" against the bubble popping. The thing is, every dollar you spend on insurance is a dollar (and its interest) you lose. Furthermore, we don't know when it will pop. 1 year? 5 years? The more reasonable solution is probably gradually reduce exposure to US markets by selling SP500 shares and turning to Europe and emergin…
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I use JetBrain's all you can eat subscription that comes with their Junie coding agent which includes some free tokens to cover my coding needs. I then top up tokens on on-need basis. Costs me about $100 / month in AI tokens (well I bill my clients for that separately so do not really care bout the price). All works as a charm. I mostly use their CLion, Webstorm and PyCharm IDE's for development, sometimes other as w…
IntelliJ is a bit dated, and its plugins are too. I use IntelliJ all the time, in its various incarnations, but vscode is really up there now.
I know JetBrain product could be sluggish on "normal" computers however all 4 of my development machines run on 16 cores AMD with 128GB RAM. It flies in environments like that
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SpaceX is _not_ profitable by most reasonable measurements of accounting. If you discount rocket depreciation costs and R&D, then yeah its profitable from starlink revenue.
SpaceX reuses its boosters 20+ times. Surely the depreciation is tiny when compared to the revenue of 60M+ per launch?
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But they also get a whole bunch of AI Services from Cursor. Other comments have noted that xAI has fallen on bad times (idk one way or the other) so perhaps they were going to spend $5B on getting these services elsewhere, anyway. SpaceX spending $1B a month on various AI services seems ~plausible (EDIT - Or maybe it's an IP transfer, or maybe it's over a longer time horizon. Idk but SpaceX clearly expects value from…
Cursor has no AI services, they do not develop their own frontier models. I see no reason to understand why $10bn for Cursor's services is an advantage xAI versus say a $10bn deal with Anthropic, OpenAI or Google.
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It is not cash though. SpaceX does not have $60B liquid cash instruments. More accurately it is 3.4% of SpaceX at the last rumored valuation of $1.75T.
No longer rumored as they filed for IPO! This is actually an amazing sweetheart deal for Cursor. Many times with these high profile acquisitions, most stock is tied to LPA's and employment at the company, and also earnout provisions. The company then finds a way to parachute them out early, which both voids the earnout and their employment, thus they never vest most of the units and the few units they do vest get bou…
Guess I'll be looking for a replacement for Cursor now... Anyone have recommendations? I like the plan/agent mode and the fact that it's an IDE, so I can use it in the traditional way as well as by yapping with a bunch of agents. Also the Cursor rules I've curated and they do their job well.