SpaceX IPO: How It Could Hit Your Pension

134 points by benseaworthy 22 days ago on reddit | 15 comments

[OP] benseaworthy | 22 days ago

Most people don't seem to understand how many backhanded things are being done to slip an overpriced stock into our pension plans. The article discusses how the SpaceX IPO will circumvent normal price discovery and how normal people's pensions will be forced to buy it.

  • SpaceX's May 2026 S-1 filing reveals the company lost $4.9 billion last year on $18.7 billion of revenue, with losses widening to $4.3 billion in Q1 2026 alone.
  • The IPO is structured as a low-float listing at a $1.5 trillion or higher valuation, with Nasdaq and S&P rewriting their index inclusion rules to fast-track entry.
  • Musk controls 85% of voting power through 10:1 supervoting Class B shares; the public buys Class A only, with no governance influence.
  • Index funds (Nasdaq 100, S&P 500, MSCI World) will be forced to buy SpaceX shares at whatever price this engineered scarcity produces.
  • Musk's own pay package vests on a $7.5 trillion market cap target and a "permanent human colony on Mars" - concrete evidence of how high the playbook needs the index pump to go

xDolemite | 21 days ago

NOBODY IS MISSING THIS IT IS JUST OUT OF OUR CONTROL

BassmanBiff | 21 days ago

I think a lot of people aren't as online as you and I

DubSket | 21 days ago

Plenty of people aren't aware of this, don't be silly.

frozenelf | 21 days ago

It’s not out of our control if we want it bad enough

EmilieEasie | 22 days ago

Bag holders wanted!

Seriously guys check your options for your 401ks, some give you more than others

stay_fr0sty | 21 days ago

Is the play that once everyone is invested it’ll be “too big to fail?” Seems like an angle for a corrupt government and corrupt billionaire.

EmilieEasie | 21 days ago

I don't think so, I think once the rich have been bailed out from their bad ventures by the middle class, they'll be allowed to fail if they're going to

mycall | 21 days ago

The even shrinking 45% middle class.

BathingInSoup | 21 days ago

So what do diversify into to avoid this crap?

happy30thbirthday | 21 days ago

Factor-based ETFs like from Dimensional or Avantis. Same diversification but no automatic buying just because something enters an index.

The_Law_of_Pizza | 21 days ago

Take a look at the target date funds offered by the large asset managers - Fidelity, Vanguard, Blackrock, JPM, etc. They're all pretty similar.

The professionals advocate for a well diversified portfolio that covers the entire stock market - not just the S&P500 but small and mid cap stocks too, as well as a healthy international exposure up to a 1/3 of the portfolio, and some bonds.

If you have a portfolio like that, even if SpaceX utterly implodes you won't see more than a tiny inconsequential fractional blip in your account because it was only ever less than 1% of your account to begin with.

What the OP article is pointing out is s real issue, but if it's actually a material threat to your retirement portfolio then you're doing it wrong.

happy30thbirthday | 21 days ago

I am dumping all my world etfs in favour of factor-based etfs for this very reason. Whoever is going to end up holding the bag for this scumbag, it won't be me.