SpaceX's IPO is a disaster waiting to happen for your pension fund
5 hours ago
- #Pension Investments
- #Elon Musk
- #SpaceX IPO
- SpaceX, set to become the world's most valuable listed company with a valuation of $1.75-$2 trillion, is going public with the overarching goal of colonizing Mars.
- The company's core is the profitable Starlink satellite internet business, while SpaceX rockets and unprofitable AI ventures round out its structure.
- Elon Musk will control 85% of voting power through super-voting shares, leaving shareholders with no say and limited legal recourse.
- Passive investment strategies by pension funds will force them to buy SpaceX shares, meaning many individuals will indirectly invest in the company, potentially 0.04%-0.15% of their pension.
- The IPO is criticized as a one-sided racket, allowing insiders to cash out while retail investors and pension funds bear the risk of an unprofitable, debt-laden company with megalomaniacal ambitions.