The 12 Scariest Words in SpaceX’s Prospectus All but Confirm an Imminent Fleecing of Retail Investors It’s now official: Elon Musk’s SpaceX (NASDAQ: SPCX) has surpassed overseas oil titan Saudi Aramco as the largest initial public offering (IPO) in stock market history!
SpaceX raised $75 billion by selling roughly 555.6 million shares and ended its first trading day with a valuation of approximately $2.1 trillion
This makes it the seventh-most-valuable public company on U.S. exchanges. It’s understandable why investors are so excited. SpaceX combines two of Wall Street’s hottest addressable opportunities under one company — artificial intelligence (AI) and the space economy — and is led by Musk, who turned electric-vehicle maker Tesla into a $1.5 trillion business.
But in several respects, this IPO likely represents the greatest fleecing of retail investors we’ll ever witness. SpaceX going public provides insiders with a way to cash out at the expense of retail investors. While some of this fleecing is Wall Street’s doing, 12 words in SpaceX’s prospectus all but confirm that bad news awaits retail investors.