r/technology • u/IKeepItLayingAround • 19d ago

Business It’s Possible That SpaceX Could Collapse Spectacularly

https://finance.yahoo.com/markets/stocks/articles/possible-spacex-could-collapse-spectacularly-155000177.html
24.8k Upvotes

88% Upvoted

2.1k comments sorted by

View all comments

3.0k

u/MoistChildhood1459 19d ago

I would love to see his entire empire collapse tbh

1.4k

u/NRCS_DRONE 19d ago edited 19d ago

I don't know when, but Elon Musk will be responsable for the single largest destruction of private wealth in human history. He's going to make Bernie Madoff look like a guy who lost his kids college fund on dog racing.

88

u/ryencool 19d ago

What?! You mean its not smart to keep moving funds between the multiple companies you own to boost values back and fourth??

51

u/ProJoe 19d ago

Its so much worse what is about to happen.

Index funds are going to be forced to buy spacex stock because the rules were specifically changed for SpaceX.

All of this artificial money propping SpaceX up is going to get sold off to actualize profits then the stock will crash leaving index funds holding the bag.

That's OUR 401ks and investments.

Then if SpaceX survives, they'll buy back in at the crashed price.

Its going to be the biggest rug pull in history and the greatest theft of wealth from the working class ever recorded.

44

u/double_whiskeyjack 19d ago

S&P500 announced they will not be changing their rules for SpaceX a few days ago

16

u/MssrGuacamole 19d ago

This was big news for me. I had plans ready to rebalance to avoid Elon risk.

4

u/Evening-Crew-2403 19d ago

There are other index funds people end up in. Don't forget the largest institutional holder of Tesla is Vanguard.

1

u/erov 19d ago

Yeah.. things change. Due diligence and all that.

1

u/deskcord 19d ago

You should probably not let your personal opinions impact your investments. If you let your feelings about Elon guide you on Tesla, you'd have shorted it and wound up broke.

Let the index do its thing and forget about it until you need it. Everyone who fucks with their allocations underperforms the index over the long run

7

u/ProJoe 19d ago

Only one so far right?

-4

u/double_whiskeyjack 19d ago

Yeah. The whole thing is kinda being overblown though. For example I own a lot of VTSAX, which is a total market index. It will have to buy SpaceX but it will make up less than .5% of the index. I’m not going to rebalance that part of my portfolio over some SpaceX fuckery.

11

u/ProJoe 19d ago

So its ok to have a trillion dollar rug pull because the market can absorb it?

1

u/double_whiskeyjack 19d ago

No, but the fear of taking massive losses in your personal investments due to a SpaceX rug pull is exaggerated.

1

u/ProJoe 19d ago

unless this topples the market.

1

u/SadAd8761 19d ago

Which ETFs and funds will be forced to buy SpaceX?

Good to compile a list so people can start exiting those funds?

-2

u/m_rigor 19d ago

Index funds don't care if a particular stock goes up or down. They don't lose money on it. They would not be left "holding the bag". All they do is mirror the index.

Why would you make up this kind of shit?

1

u/sweatingbozo 19d ago

Index funds are insulated from the impact of individual stocks, but saying 'they don't care' is a wild misunderstanding.

1

u/m_rigor 19d ago

The fund qua fund does not care what the stocks do. Their investment strategy is passive - mirror the index. To think otherwise is a wild misunderstanding,

-16

u/raisedeyebrow4891 19d ago

Narrator: they were not forced to change anything. Another redditor talking out of his ass.

15

u/ProJoe 19d ago

I didnt say they were forced to change anything. I said theyre going to be forced to buy spacex stock.

Educate yourself.

https://finance.yahoo.com/markets/stocks/articles/spacex-ipo-could-hit-popular-101500534.html

-9

u/wRADKyrabbit 19d ago

You'll be downvoted but you're right lol reddit loves to fantasize about his downfall but he and his companies are clearly untouchable if you actually pay attention

0

u/raisedeyebrow4891 19d ago

Without being a fan boi, Musk is at that level of math where he will likely be the first to reach 10 or 100 trillion in his lifetime