Matt Badiali:

Elon's Missing Metal

Elon Musk's grand space ambitions hinge on a remarkable metal. I'm talking about magnesium which is critical for making rockets and cars lighter. The metal is 75% lighter than steel and 33% lighter than aluminum. It’s the lightest structural metal known. Lightening the weight of a rocket makes them perform better and use less fuel.

Magnesium alloys can withstand extreme temperatures, which makes it critical for intercontinental ballistic missiles like the Titan, Atlas, and Agena rockets. Aluminum-magnesium alloys also resist solar radiation damage. That allows the spacecraft to stay in space longer.

Unfortunately, the only primary magnesium producer in North America quietly went bankrupt in 2025. To meet the magnesium needs for these emerging technologies, the U.S. (and Canada…and Mexico) must import the metal.

The U.S. government awarded a small private startup called Magrathea Metals a $19.6 million grant in 2024. The company plans to develop magnesium production from seawater. But right now, there are no investable companies that operate in the U.S.

For now, the best way to get exposure to magnesium production is through giant mining companies like Albemarle (NYSE: ALB). But we need this metal for space travel, so we’ll be watching for a domestic producer to emerge.

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Ray Blanco:

RKLB Stock Takes Off After Rocket Lab’s Defense Solution Passes SDA’s Requirements

Shares of Rocket Lab USA Inc. (RKLB) surged on Wednesday after the missile defense solution developed by the company cleared the Space Development Agency’s (SDA) system requirement review, which won it a significant contract worth close to a billion dollars.

The company said its proposed solution has emerged as the technical baseline for the SDA program, earning it an $816 million contract in addition to a $515 million contract previously awarded by the agency.

The SDA's Tracking Layer Tranche 3 (TRKT3) constellation is based on Rocket Lab's Lightning satellite platform. The solution is capable of defending against hypersonic missiles and even directed-energy threats.

The contract win for the company comes amid rising global tensions due to the U.S.-Israel-led war against Iran, which has driven demand in the defense sector for a variety of solutions as the U.S. doubles down on attack capabilities in order to ward off threats from missiles and drones.

RKLB stock was up more than 7% in premarket action but has since eased off. RKLB stock has more than doubled in value so far this year and has risen nearly fivefold over the past 12 months, outperforming the benchmark S&P Index.

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Davis Wilson:

"S-1 Secrets" From SpaceX's 300pg Filing

Most investors still think of SpaceX as rockets, satellites, and Mars. But buried deep inside SpaceX’s 300-page S-1 filing is a very different story.

The deeper I read into the S-1, the more it became clear that SpaceX is increasingly transforming into an AI company powered by Starlink cash flow and wrapped inside a space company.

According to SpaceX’s own S-1 filing, the company estimates the Space total addressable market (TAM) at roughly $370 billion while the AI TAM is estimated at a staggering $26.5 trillion. In other words, SpaceX itself believes AI is a 72 times larger opportunity than space. And SpaceX is currently spending roughly 7x more on AI than its actual space operations.

After reading this S-1, I came away both more impressed… and more cautious. The opportunities here are enormous. So are the risks, the spending, and Elon Musk’s ambitions. I haven’t fully decided yet on whether I’ll buy shares myself. I’ve got until June 12th to decide. That’s the day SpaceX is expected to IPO.

But at the very least, I now understand what I’d actually be buying. And no… regardless of what most people think, it isn’t a rocket company.

Click the link below for my complete findings.

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