Elon Musk's SpaceX weighs Nasdaq listing after seeking early index entry

Early index inclusion will be exit liquidity for private investors.

Yep. Based on my limited understanding, an influx of capital from indexes will allow them to keep the stock pumped long enough for private investors to get out.

Musk had to have SpaceX because he couldn't stand to let his Twitter purchase be a failure.  SpaceX is great, but Musk will load it up with so much of his private baggage that it will have to drag that anchor to make progress.

Standard rules would weight the company based on that $87.5 billion. Nasdaq has reportedly proposed a "Fast Entry" rule change for mega-cap IPOs with low floats (under 20%). Under this rule, the index would calculate the company's weight as if its float were five times larger than it actually is. The index would treat SpaceX as if it had a massive $437.5 billion float, even though the physical supply of shares remains small ($87.5 billion). Trillions of dollars are invested in ETF must follow weights. If the index says SpaceX is "worth" a 4.5% weight (based on the $437.5B figure) instead of a 0.9% weight (based on the real $87.5B figure), those ETFs must buy five times more shares. Because the actual supply of shares is so small, this massive forced buying by ETFs would likely drive the stock price up to artificial levels. Once the "lock-up" period ends and insiders (like Musk or early employees) start selling their remaining 95%, the price could collapse because the "forced buying" from the ETFs has already been exhausted.

Why are they so special to get this?

Could? Hahaha

Hmmm... I wonder if the next starship RUD test will be pushed back till July? 🤔

1. Pump 2. Dump.

It will contaminate the index

This just told me not to buy into another index fund ever again. At least not until someone comes up with something like "S&P, less ponzi scams and meme stocks."

There's no way a company with a meager 3% public float should be listed on the Nasdaq 100.

pump and dump. Not really a reason to do this otherwise.

I've watched this kinda porn for decades. 1

Bro doesn’t know the stranglehold Elon has on Joe Rogan listeners portfolios.

Surely Branch Elonians won't fall for the next scam, right...?

Get your shorts ready

Early index entry with 3% float would be a travesty to listing laws. But we have seen stranger grifts

The public trust in financial institutions undermined long time ago.

Reminder that the president of the United States gave a free (cost the taxpayers a fuck ton) car commercial on federal property to Tesla.

Would they really pump and dump spaceX? They're positioned to work the closest with the Gov't. This is FAR more dangerous for Tesla I'd say. People were looking for ways to invest into Elon. This is the new wave

“I love Tesler”

Already exists it's S&P ex US

70%+ of SpaceX revenue comes from Starlink, not govt

Everything's computer

* His big rockets aren't going that well. * While they seem to be the cheapest to launch atm, like with Tesla other companies are catching up, some are using alternative technologies that might allow them to launch cheaper. * Starlink is getting competition, perhaps they don't think it will be viable going forward. Just a few things I would look at before I invested.

Surely EFTs have a little bit of leeway to avoid this kind of thing?

Space X does not make any profit and never will, what a scam

What you mean?

So how to use options to make of money off this plan ala /wsb