SpaceX’ surging stock paid for the $60 billion Cursor acquisition in just a few hours of trading—and it reveals Elon Musk’s new power

**SpaceX's $60 Billion Acquisition: A Game-Changing Deal for Elon Musk's Empire**

SpaceX's incredible stock performance has made it possible for the company to acquire AI coding startup Cursor for a staggering $60 billion in stock, a deal that is being hailed as the largest ever acquisition of a venture-backed startup. This unprecedented move has sent shockwaves through the business world, revealing the immense power and flexibility of Elon Musk's acquisition currency. In a matter of hours, SpaceX's stock appreciated by the entire cost of Cursor, making the deal almost cost-free for Musk. This game-changing acquisition has far-reaching implications for the tech industry and demonstrates the immense influence of SpaceX's dual-class structure.

Background & Context

SpaceX, the pioneering space exploration company founded by Elon Musk, has been on a tear since its initial public offering (IPO) in April. The company's stock has surged, driven by the public's enthusiasm for its ambitious plans to colonize Mars and its innovative approach to space travel. This excitement has not only boosted SpaceX's market capitalization but also provided Musk with a powerful tool for acquisitions: a supercurrency that can be used to buy companies without touching cash, debt, or IPO proceeds.

The acquisition of Cursor, an AI coding startup, is the first major demonstration of this new reality. The deal, announced in April, gave SpaceX a call option to buy Cursor after its IPO for $60 billion in stock. However, with SpaceX's stock appreciating by several times the initial price of the deal, the economics of the acquisition have changed dramatically. The company's market capitalization has grown to an astonishing $2.51 trillion, up roughly $740 billion from its IPO valuation in less than four trading days.

Key Details

According to reports, SpaceX will pay for Cursor entirely in stock, which has appreciated by several times the initial price of the deal. The company's stock opened at $135 per share on June 12 and closed Monday at $192.46, giving it a market capitalization of $2.51 trillion. This represents a gain of over $740 billion from its IPO valuation in less than four trading days. The $60 billion Cursor acquisition represents less than a tenth of that gain.

"The IPO gave SpaceX a valuation and a premium currency," said Franco Granda, Senior Analyst at Pitchbook, who covers SpaceX. "Signing a $60 billion all-stock deal four days after listing, with the stock up more than 50% from the offer price, shows the playbook. SpaceX can now buy a company that size without touching cash, debt, or IPO proceeds, and the higher the stock runs, the cheaper the deal feels."

Granda also highlighted the importance of SpaceX's dual-class structure, which allows Musk to control nearly all the votes. This structure "removes the last bit of friction," allowing SpaceX to "move at a speed no normal large-cap acquirer can."

What Experts Say

Tammy Madsen, professor at Santa Clara University's Leavey School of Business, noted that the deal is a nice outcome for Cursor too. The AI coding startup was thought to be losing ground to rivals like Anthropic's Claude Code and OpenAI's Codex, but the acquisition has made its cofounder and CEO, Michael Truell, 25, one of the youngest billionaires in history.

However, Madsen also warned that it's hard to predict what else Musk wants to add to his portfolio. "Grok is not performing as well as the other tools that are on the market, a lot of firms are partnering across this space, whether it's Open AI and Microsoft," she said. "So it's, it's hard to say, I wouldn't expect him to stop though. His focus has always been high risk, high reward."

Key Takeaways

• SpaceX's stock has appreciated by several times the initial price of the deal, making the acquisition almost cost-free for Musk.
• The acquisition demonstrates the power and flexibility of SpaceX's acquisition currency, which can be used to buy companies without touching cash, debt, or IPO proceeds.
• SpaceX's dual-class structure allows Musk to control nearly all the votes, giving him the flexibility to move at a speed no normal large-cap acquirer can.
• The deal has made Cursor's cofounder and CEO, Michael Truell, 25, one of the youngest billionaires in history.

What This Means For You

The implications of this deal are far-reaching and significant. It demonstrates the immense power and flexibility of SpaceX's acquisition currency, which can be used to buy companies without touching cash, debt, or IPO proceeds. This has significant implications for the tech industry, where companies are increasingly looking for ways to acquire and integrate new technologies.

For everyday readers, this deal highlights the importance of staying ahead of the curve in the tech industry. As companies like SpaceX continue to push the boundaries of innovation and growth, it's essential to stay informed about the latest developments and trends.

As we watch the SpaceX empire continue to grow and expand, one thing is clear: Elon Musk's acquisition currency is a game-changer, and it's only a matter of time before we see more deals like this one.