About The SpaceX IPO

Let's talk about the SpaceX IPO happening this Friday. As there are some things you definitely should know about. Like the fact that you probably will be buying some SpaceX even if you don't want to. SpaceX is set to go public this Friday at $1.75 trillion. This makes it one of the most valuable companies in history and puts it ahead of even companies like Meta and Elon's other company, Tesla. However, when a company goes public, it does not list all of its shares. In fact, SpaceX is only listing 75 billion dollars. Only doing a lot of the work there because this does make it the largest public IPO offering ever. However, at $7.5 trillion, this makes it an incredibly low amount of the company that they're actually offering. Why does this matter? Well, for one, it means that private shareholders still control a majority of the company, like 95 plus percent. But it's also important because until the rules were changed for this IPO, it would not have been included in index funds. Because many of these index funds are weighted by company valuation, and it would have to be profitable and it would have to have been listed for at least a year before it could join things like SPY or the Nasdaq or QQQ. I know the trillions of dollars of people's retirement accounts that every two weeks when your paycheck hits, it goes into one of these index funds. A short five days after it goes public, it will now be buying SpaceX. And because many of these index funds are weighted by company valuation, then it's buying actually a decently large percentage too, depending on your retirement account and which funds you are invested in, up to 3% of everything you've ever saved will go to buying SpaceX. The incredibly money-losing business that Elon has 10 times preferred voting shares over. Which means no matter what you care about, or what anyone else says, whatever Elon says will go. Now, I think that SpaceX is an incredible company. Starlink is a hugely profitable business arm, building rockets is not easy, and they have incredibly smart people. But it's important to understand the level of financial engineering that is happening to make what will probably be the world's first trillionaire on Friday. Building rockets is not easy. But it's important to understand the level of financial engineering that is happening to make what will probably be the world's first trillionaire on Friday.