Opened at $150/share. Was at an investment dinner the other night where it was discussed. They said even though it’s in the industrial sector many of the funds are for AI.
My understanding is Musk retained essentially complete control meaning the shareholders will have very little power should it all go off the rails (a not insignificant risk in my opinion).
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Per various sources, retail investors will be locked into holding their shares for a long period. Apparently, Musk can dump a hefty portion of his shares much sooner than in a typical IPO.
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I do not think that is true. I sold mine, for example.
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Did you buy pre-IPO or on the open market ? The lock typically means one would not be allowed to buy another IPO if the agreement not to sell for a certain period of time is violated. It varies by brokerages.
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pre-ipo. i just checked into it, based on your post. seems some brokerage firms put stipulations around sales. some said you can’t sell for a certain amount of time or you can’t get other ipos for certain amount of time. not i!
Yes, that is how it works. Typically, three strikes, and you are out (of pre-IPO purchases).
I do a lot of them, so pleased to say those rules do not apply… but that does not mean I always win.
Fido says I can sell my Retail pre-IPO shares on 6/29 without repercussions.
Good for you. That’s quite short. And let me guess you are not an employee or director of the company. Usually employees etc. are locked out longer than a week or two. Apparently not the case here.
correct, just a regular person with zero connection to the Company or any Finance company/bank.
The Commentary in the Times does a good job of highlighting the riskiness of an individual stock pick, but a bad job showing the math on how “small investors could be left holding the bag”.
For example, SPACX will be added to Vanguard’s Total Stock Market Index after five trading days. (Total Stock Indexes are popular in 401k plans, and highly recommended by Bogleheads.). Back of the envelope calc shows that SPACx will be ~0.10% of TSM when it enters – barely a rounding error – and eventually ~2.3% under full float and after OpenAI and Anthrotopic join. Still less than NVIDIA. Including Tesla, those 5 companies would comprise ~10% of Total Stock.
Sure, it’ll be a much larger % of the S&P500, but SpaceX will have to get profitable first.
John Bogle: “buy the haystack.”
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“barely a rounding error” multiplied by the size of all the retirement accounts which will automatically buy it at a price many feel is far too high equals a very large payday for Musk and co. at the expense of the typical investor. I’m not a fan.
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A friend got caught up in the hype and wanted to buy as much as possible. I advised restraint.
They were able to buy 40% of what they’d requested, others they knew got less than 10%.
Someone close to me who analyzes stocks for a living believes it is significantly overpriced but, regardless, will experience short term appreciation before coming back down to earth.
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Only 20% up? Good first day of trading, but I bet many speculators are disappointed because they expected substantially more.
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The person I know who left SpaceX earlier in the year is hoping the proce stays above $135 until he can cash in in August. He deserves a big payout for the hell that job put him through.
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People who put up with a lot of crap at that company deserve their payouts.
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“Be fearful when others are greedy…”
– Warren Buffett
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The point is, the index funds won’t have to buy a ton. Most indices are market cap weighted (they buy more shares of bigger companies), but it’s adjusted by the float (the percentage of shares released).
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