SpaceX's Early Backer Discusses Capital Market Pressures Post-IPO

Deep News
Yesterday

When asked about the various new pressures SpaceX will face after going public, the company's early investor, Gavin Baker, stated in a CNBC interview that he believes Wall Street will understand SpaceX's long-term development blueprint.

Baker compared SpaceX to Amazon. For years after its 1994 IPO, Amazon consistently conveyed a core logic to investors: long-term growth is far more important than short-term profits, a model that is widely recognized.

"Consider Amazon's early development stage. The company continuously made significant investments in business expansion, and the capital market provided ample support, simply because the market could see the considerable return on investment behind those expenditures," Baker said.

Baker revealed that the internal rate of return for SpaceX's "Colossus One" space data center project is exceptionally impressive.

"As long as a project can achieve an internal rate of return at our level, the capital market typically supports the company in making capital expenditure investments."

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