This is shaped like more-or-less every IPO I've seen. I think you have to wait for more of a collapse to claim dispositive evidence of a scam (or widen your claim to 'almost all IPOs are scams').
It's a scam because of the hype mind control and propaganda around it. Because Musk tried to force it into the NASDAQ and S&P 500 before the normal windows, attempting to bypass sensible regulations that protect investors.
The governance of the company is also prone to scamming.
There's no room in the global economy to justify the kinds of numbers. Like spacex isn't going to be the world's first 100 trillion dollar company because there isn't that much money . That's nearly as high as the global GDP. Crazy growth rates are not possible.
> Like spacex isn't going to be the world's first 100 trillion dollar company because there isn't that much money. That doesn't really matter. As we saw with crypto valuations, market cap is just number of shares * last price. If you have 1 trillion shares and one is traded for $100 you have a 100 trillion market cap.
SPCX has 555 million shares, thats $180,000 for a share for this 100 trillion market cap. Don't be ridiculous.
“Shocking nobody” I would add… This is an obvious Musk scam and anyone with financial knowledge called it as such ever since it’s been on the table. Why else lobby and change the NASDAQ listing rules for instance?
This is shaped like more-or-less every IPO I've seen. I think you have to wait for more of a collapse to claim dispositive evidence of a scam (or widen your claim to 'almost all IPOs are scams').
Many IPOs slide below their initial offering.
Very few IPOs changed the rules to allow themselves to be incuded in significant indexes far faster than the rules previously allowed, and then slipped below their initial offering.
I don’t think scam is the right word. The valuation and bank price targets are absolutely insane. I myself could never invest at those multiples. I think they absolutely have governance problems but at the same time I have to admit he is a great financial engineer. Investors who do have conviction here most likely see this as the platform vehicle for everything else coming through the pipeline. Again I could not buy…
I guess the difference between "scam" and "financial engineer" is whether it works. If everyone loses their money it will be a scam. If people get rich he will be a financial engineer. These aren't two different things. The winning side will make up reasons why they are right, and the losing side will make up excuses why they were wrong.
What is this scheme he is getting away with? We all saw the numbers, it is an absolute absurd valuation. Like I said I would never make the bet but just because I don't like him, does not mean I will immediately call the scam card. Both can be true.
This is shaped like more-or-less every IPO I've seen. I think you have to wait for more of a collapse to claim dispositive evidence of a scam (or widen your claim to 'almost all IPOs are scams').
SpaceX has a float of 5%. So only 5% of SpaceX shares have been released to the public. Slowly, starting in August, employees and investors will be able to sell their shares, about 45% more until December 2026 and another 45% until July 2027. What do you think will happen to SpaceX share prices when roughly 18x the number of shares at IPO are released? From a company that only made $18bn in sales last year and lost $…
Aramark is a horrible company for comparison. Maybe the only thing they have in common with SpaceX is that they are publicly traded companies. I'm not saying that SpaceX is a good investment or that Musk isn't trying to run a scam on index investors. But we also shouldn't be surprised that the financials of an incompetent commercial food service provider are a little different from those of a spaceflight company / data center real estate conglomerate / whatever else has been rolled into it.
What you describe is exactly a scam: he somehow convinced you that he's not motivated by wealth! That alone is clearly a scam, the idea that Musk is not motivated by huge amounts of wealth and high valuations is just implausible considering g his behavior at every single turn.
What is he doing with all that wealth? Taking lavish vacations? Buying luxurious yacht? Buying islands and making bunkers?
SpaceX, despite its name is an AI company, supposedly. Its S-1 states that the company estimates its total addressable market (TAM) at $28.5 trillion, of which $26.5 trillion, or 92.98%, is expected to come from AI. SpaceX is an AI company without a frontier model. Until Jan 2026 SpaceX was an aerospace company. Then xAI was merged into SpaceX on January 30, 2026, so SpaceX became an AI company less than 6 months ago…
> AI company, supposedly Mainly it’s a REIT that bought a bunch of hardware which is now depreciating like fresh lettuce. They don’t even have a way to use it productively for AI purposes themselves and are instead renting it to competitors, who are using it to lap them.
> now depreciating like fresh lettuce
Musk for Prime Minister is what I am hearing here.
Yes, it is an obvious scam, but as far as I understood, it was a scam that was guaranteed to succeed: SpaceX is listed on Nasdaq and added to the Nasdaq index after only two weeks thanks to the rules Nasdaq changed at SpaceX's behest, so all funds that track Nasdaq have to buy SpaceX shares, so the prices were going to explode automatically because they made sure there will not be enough shares available. What went w…
There's a lot to unpack here, but a few thoughts. SpaceX wasn't added to the Nasdaq until two days ago, which is right around the time the stock was reaching it's current lows. Doesn't make sense to say that they prices exploded because of that. Second, I don't know the details but it's extremely unlikely that most SpaceX folks have been able to sell any shares. Typically there's a 90–180 restricted window where pre-…
I didn't say that the prices exploded, I said that (according to the maybe dodgy experts who I read/heard) they were practically guaranteed to explode. And by explode, I mean go up. But if SpaceX was only added to the index two days ago, maybe that might still happen. According to the same experts, the stock sale restrictions for pre-IPO holders were also changed for SpaceX, but I don't remember the specifics...
This is shaped like more-or-less every IPO I've seen. I think you have to wait for more of a collapse to claim dispositive evidence of a scam (or widen your claim to 'almost all IPOs are scams').
Many IPOs slide below their initial offering. Very few IPOs changed the rules to allow themselves to be incuded in significant indexes far faster than the rules previously allowed, and then slipped below their initial offering.