SpaceX's Massive IPO Could Disrupt Index Fund Investing for Retirement Savers
By
Eleanor Davis-Diver
2h ago· 13 min readenInsight
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Summary
The article discusses how SpaceX's upcoming IPO, potentially the largest in history at $75 billion raised and a $1.75 trillion valuation, will negatively impact ordinary investors who rely on index funds for retirement savings. While insiders like Elon Musk stand to make millions, the IPO's structure and scale could distort market indices and make passive investing less effective for average savers.
Key quotes
· 3 pulledA successful IPO will put the notional total valuation of SpaceX at $1.75 trillion, which is more than double the $780 billion it may actually be worth according to a Morningstar analysis.
Investors all over the country and the world will soon have the chance to own a piece of Elon Musk's SpaceX, after what could be the biggest initial public offering (IPO) in history.
Even that figure is quite a lot of money for a company that reported a net loss of $4.94 billion last year.
The upcoming SpaceX IPO will make investing in index funds for retirement worse, while Musk and friends rake in millions.
