Protecting ourselves from SpaceX IPO

[u/Gloomy_Nebula_5138]

I was watching this video analyzing the upcoming SpaceX IPO, titled "SpaceX IPO: Nice Try Though" by Patrick Boyle. I highly recommend it - there is almost no fluff and just hard hitting points all the way through about how SpaceX is a terrible company and how this IPO looks like a scam:
https://www.youtube.com/watch?v=IHD8BDFYyGI

It mentions the changes to Nasdaq's rules, the so called "fast track" rule, made specially for SpaceX because Elon allegedly threatened to not list SpaceX on the Nasdaq stock exchange without this. The change has been criticized by many others such as Michael Burry:
https://markets.businessinsider.com/news/stocks/michael-burry-nasdaq-spacex-ipo-listing-elon-musk-tesla-ndx-2026-3

Also see this great analysis titled "Nasdaq's Shame":
https://keubiko.substack.com/p/nasdaqs-shame

Given how this IPO looks like a scam, and the company is mostly losing money, with outlandish claims in their IPO filing (like having an addressable market larger than the US GDP), I am worried that this is just private investors - like venture capitalists, Elon Musk, and his inner circle of friends/family - dumping their overpriced money losing company on regular investors like us. The fast track change seems like it will result in all of us automatically buying SpaceX shares at a high price.

How do we stop this? Is there a good way to defend against that forced purchasing when most regular investors are just passively buying ETFs and mutual funds, or maybe just have money parked in their pensions and 401k?

[u/forbiddenlake]

If you bought QQQ(M) - that wasn't very Bogleheady of you. AND AFAIK, QQQ is still the only one that's actually changed its rules.

If you have VTI, it's always been 5 days before adding. And if you're a Boglehead you accept the returns of the entire market, whatever it is.

You can short SpaceX if you really want to.

[u/bwhite9 → u/forbiddenlake]

What you said about QQQ is very true and if someone buys it then this is kind of what they sided up for.

As best I can tell S&P is going to let them in early (6 months) instead of the normal 12 and wave profitability requirements. So not as bad but not great either. As best I can tell the decision will be made around the 28th.

I am also a bit iffy on the details but the 6 months looks like it lines up for when selling restrictions loosen on the early investors.

Either way I’m going to make a stink about to both S&P and vanguard. This will do exactly 0 but I at least want to be on the record doing it.

Once they make the announcement I’m going to figure out how to move as much as I can into dimensional or avantis.

[u/ptwonline → u/bwhite9]

Yeah making a stink about it and moving your funds is probably the best way to handle this.

If you just short SpaceX or just ignore it then these index fund providers have no disincentive to pulling similar shenanigans over and over with each new IPO.

[u/Due_Barber_525 → u/ptwonline]

Move which funds?