Before we get to this week’s Q&A…

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Now let’s get to this week’s Q&A.

I read your article on why not to invest in SpaceX. I’ve been investing in SpaceX since 2019. So you’re telling me I’ve been investing for seven years and the business that isn’t gonna give me what he says it’s going to give me? I kinda overextended myself on this now I’m worried. – Mikel

Hi Mikel. Great question.

Since you started investing in 2019, you likely got in at a much lower valuation and have already captured a significant portion of the upside.

My concern is with investors looking to buy at the IPO.

They’re not getting in early. They’re buying at a ~$1.75T valuation that assumes a very optimistic future.

At that price, and under the assumptions I laid out on Friday, I don’t think it’s a great investment.

It has been rumored Elon will get all his businesses under one ticker symbol at some point, and with Tesla reporting weak sales numbers again doesn’t it line up for him to take the proceeds from this SpaceX IPO and buy out Tesla? Plus, making a small investment in SpaceX and letting it chill for a decade or longer wouldn’t be the worst thing you could do. I know I didn’t when Tesla went public and I’m not making that mistake again. – James

I always appreciate the emails, James. Thanks for being a loyal reader.

I agree with you on the bigger picture. The idea of Elon eventually bringing his companies under one umbrella makes a lot of sense, and at this point, it feels more likely than not.

Where we differ is on the investment.

There’s no question SpaceX is a fantastic company. But at 117x sales today – and still around 12x projected 2040 sales – you have to ask yourself if that’s really where you want to put new money.

If you’ve got money available to take a flyer on SpaceX, go for it. Personally, I’m going to stick with other high-growth companies trading at more reasonable valuations.

Said another way – If I miss the SpaceX rocket ship, so be it. I’m comfortable riding Nvidia, Amazon, and Uber ships instead.

Always appreciate the emails.

I agree completely with your essay on SpaceX’s valuation projections by the eagerly-awaiting stock purchasers. I understand what Musk has planned for the company and it is very exciting, but I question the ability of SpaceX to make the kind of money it will need to justify its stock price. The build out of the space community to satisfy the projected demand of the orbiting data centers and cell phone industries will take years and the rate of getting the structures into orbit is limited to the number of rockets available to carry this future space junk up there. All of this projected profit is subject to so many variables that waiting for the “proof in the Pudding” is wise. Good advice, too bad the stampede will drown out your warning. – Dan

Thank you, Dan, for the thoughtful email!

I’m doing my best so at least my readers don’t join that “stampede.”

Please keep the emails coming.

Will owning Tesla help me when the SpaceX IPO happens? What about owning stocks like ASTS and RKLB? Are they likely to benefit or get hurt? – Coralie

Thanks for the email, Coralie!

I think you’re approaching this the right way. In my view, both Tesla and SpaceX are expensive.

There are better ways to play the space theme. The two names you mentioned are among the best options.

LET’S GIVE A REALISTIC SUGGESTION FOR A RECOMMENDATION… BE CAUTIOUS ABOUT GETTING IN THE FUNDRISE INNOVATION FUND (VCX) OR WOULD YOU YOURSELF STAY AWAY? I get a bit annoyed with the wishy washy suggestions. – Tony

THANKS FOR THE EMAIL, TONY.

I’ll post my article on VCX here so that other readers can reference it.

Of all my articles, I didn’t think this one fell into the “wishy washy” category.

The title itself is “Beware – The New SpaceX Fund,” and I clearly lay out how VCX was trading at 15x the value of its underlying holdings – outrageously expensive.

I also walked through how this same setup played out with Destiny Tech100 (DXYZ) before that fund collapsed. And then I closed the article with: “Consider this your warning.”

So to be even more direct here: I DO NOT RECOMMEND BUYING VCX.

I can't find where your portfolio is on the Paradigm site, where is it located? – Peter

Hi, Peter! As a free service, my Million Mission portfolio isn’t on the Paradigm website. You can see it in every Saturday email. Scroll down!

Important Update: Follow The Million Mission on Twitter/X

Big news: I just launched a Twitter/X account so you can follow along with The Million Mission in real time. If you want quicker insights, early reactions to breaking news, and a closer look at how I’m navigating the road to $1 million – this is where I’ll be.

Come hang out, ask questions, and follow the Mission as it happens @DavisPWilson.

Another Important Update: The Million Mission website is live!

I’ve gotten plenty of feedback regarding where to find previous alerts. Well, The Million Mission website is finally live and you can check out archived alerts here.

Portfolio Overview

Here’s what I’m currently holding in The Million Mission portfolio:

Fannie Mae (FNMA) – 2,500 shares @ $7.25/share

Uber Technologies (UBER) – 200 shares @ $80/share

Nvidia (NVDA) – 200 shares @ $179/share