Elon Musk-led SpaceX‘s upcoming IPO could trigger retirement funds, including 401 (k) accounts, worth trillions to invest in the commercial space flight giant following its June public listing.
$30 Trillion Worth Of Retirement Funds
In a post on X on Saturday, Hedgeye shared that the IPO could trigger over “$30 trillion in passive 401k and retirement money to buy SpaceX at IPO valuations,” as indices like the S&P 500 and the Nasdaq 100 introduced rule changes that include profitability requirements.
The post then pointed out that funds investing in the S&P 500 would “absorb 19% of SpaceX’s float within 6 months,” while “Russell 1000 and Nasdaq 100 funds will absorb 24%,” the post said.
Hedgeye then pointed to the changes in rules adopted by the indices. “S&P 500 has required 12 months of trading and 4 quarters of GAAP profitability since 2002. Both waived,” the post said.
The Nasdaq cut inclusion requirements from “90 trading days to 15,” while the Russell 1000 index reduced its requirement to 5 days, the post said. “All three benchmarks are now structured to buy SpaceX at IPO pricing,” Hedgeye said in the post.
Dan Ives Touts Tesla Merger
Investor Dan Ives, managing director of Wedbush Securities, meanwhile, called the IPO a “key chapter for investors in the 4th Industrial Revolution.” He added that the listing would present a new “investing landscape” in Space. Ives reaffirmed his belief in a merger between SpaceX and Tesla Inc. (NASDAQ:TSLA) in 2027.
SpaceX Trims IPO Valuation?
Talks of the commercial space flight company trimming its valuation emerged after a report said that the company had trimmed down the target to $1.8 trillion.
Musk responded to the claim via a post on X over the weekend, saying that the report was “false.” The billionaire had earlier shared that the company was targeting a $1.75 trillion valuation.
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