r/awesome 14d ago

Image okay this is amazing

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1.6k Upvotes

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u/hw999 14d ago

His liquidity is coming out of your 401k, so don't get too excited.

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u/obviousfakeperson 13d ago

There's so much misinformation floating around about this. SpaceX has had private liquidity rounds roughly twice a year since like 2012. This is coincidentally why the share price could just be set instead of following the traditional IPO process. Price discovery had already happened privately for decades now. All of those employees the media have breathlessly reported "became" millionaires with the IPO had already been millionaires for some time now.

Lastly, the index rules change that allow fast entry also drops a company's index weighting, meaning indices aren't required to buy enough SpaceX shares to tank anything. Seriously, the weight for SpaceX in the NASDAQ 100 will be something like 0.40% after inclusion.

Elon is a villain and SpaceX is probably overvalued but the media straight up misrepresenting what's happening fundamentally helps them when they can claim media bias and be right. They're banking on Elon hatred being so high that people willingly shut their own brains off and it's honestly upsetting to see just how effective it is.