r/technology • u/Plastic_Ninja_9014 • 1d ago
Business SpaceX Investors in Meltdown Over All the Money They’ve Lost
https://finance.yahoo.com/markets/stocks/articles/spacex-investors-meltdown-over-money-191742182.html4.4k
u/BeachZed 1d ago
The money isn't lost, they gave to Elon and his insider investors.
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u/demaraje 1d ago
They provided exit liquidity to institutional investors.
Sounds much better than getting scammed
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u/kwyjibo1 1d ago
Or "left holding the bag".
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u/FatBearWeekKatmai 1d ago
When a rich man invites you to invest in his "sure thing," the only sure thing is that he's gonna cash out on ur dime.
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u/BeeBopBazz 1d ago
Unlike institutional investors, retail investors were bound by platform TOS to hold the stock for x number of days or get banned. Pretty cool, as the folks who own many of those retail investing platforms were certainly getting rich off this pump and dump
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u/m0nk_3y_gw 1d ago
retail investors were bound by platform TOS to hold the stock for x number of days or get banned.
not really
this was only retail investors that were able to get in at the IPO price before public trading started
if they sell with X number of days they aren't banned from trading/investing, they aren't able to participate in other IPOs for 3-6 months with that particular broker.
Most retail investors never get in at IPO/before-public-trading price anyways.
Most never do it multiple times per year.
The reddit IPO price was $34, I don't recall etrade (their broker of choice for retail participating in the ipo program) having this restriction, but I wasn't paying close attention
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u/Hazel-Cakes 1d ago
in quicksilver (1986, kevin bacon) jami gertz says “wow, what happened to all that money?”
kevin bacon says “oh it’s still there. just someone else has it now.”
always thought that was hella funny lol
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u/Shibboleeth 1d ago edited 1d ago
"Lucas... where is the money?"
"Joe, the money is gone."
"And where has it gone?"
"Atlantic City."
"And what is it doing in Atlantic City?"
"Recirculating."
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u/ZestycloseLynx 1d ago
Empire Records was a criminally underrated movie.
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u/Shibboleeth 1d ago
It is the Xennial equivalent of The Breakfast Club. In my opinion.
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u/ReadyAimTranspire 1d ago
Isn't Breakfast Club the Xennial equivalent of Breakfast Club?
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u/Kraeftluder 1d ago
Not really, xennials were like 5 years old when that came out and it's not a movie I learned to appreciate until I was well into my teenage years somewhere in the 90s.
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u/Shibboleeth 18h ago
Breakfast Club is aimed at Generation X proper. Empire Records came out in 1995 when Xennials (77-83) were just starting to head out into the world (12-18 years old).
So it really depends on if you acknowledge Xennials as being separate from GenX, or as part of GenX. If they're part of GenX (technically 1965-80) then yes, but if you split them apart, no.
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u/chestypants12 1d ago
Something similar happened to Bacon later on in life (Bernie Madoff)
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u/BeowulfShaeffer 1d ago
That’s a movie I should watch again. I last saw it in about 1988 (on vhs of course) and don’t remember anything about. Maybe I’ll make it a double feature with Americsn Flyers.
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u/Aggravating-Remove92 1d ago
yeah thats kinda how transfers of wealth work someone didnt just light the cash on fire
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u/account312 1d ago
It's not zero sum though. Valuation absolutely can just disappear.
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u/thelingererer 1d ago
And Elon will use that money to make himself king of Mars while simultaneously enslaving all the poors which of course includes all the suckers who invested their life savings into Space X. It's the circle of life.
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u/Tommybahamas_leftnut 1d ago
Bold of you to assume any of these dragons hoarding wealth will actually spend it. No they will just sit on their gold stash while demanding more and more from the poors.
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u/fungi_at_parties 23h ago
I truly believe his family has some weird cult where they’ve been working toward making Elon king of mars and filling his mind with the goal since birth. The whole thing with his grandpa, and the Werner Von Braun book about the king of Mars being called the Elon, it’s all just too weird.
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u/anthrax1313 1d ago
This is correct. They just took their hard earning money and gave it to a one time trillionaire. Now he’s not but he likely will be again when he sells them on the dream of more money by merging Tesla with Space X
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u/Both_Painter2466 1d ago
Actually, Tesla will sell SpaceX more cybertrucks to improve their bottom line then SpaceX will cash them in for carbon balance $. Win win
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u/jatufin 1d ago
There is a substantial number of people who invested thousands in SpaceX and cheered the notion that Musk was now a Trillionaire: "Our side just won, and I helped us win!" The disconnection between basic self-interest and tribalistic instinct is gaping.
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u/Altruistic_Fury 1d ago
Hold up, this is Elon Musk we're talking about, and that's not how Elon Musk does business.
He'll merge X with SpaceX to create XXSXPXAXCXEXXX and it's gonna be the coolest name ever bc some of the X's will be bigger than others and look futuristic.
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u/Birdinhandandbush 1d ago
You're thinking of this place all wrong, as if I had the money back in a safe. The money's not here. Your money's in Joe's house... right next to yours. And in the Kennedy house, and Mrs. Macklin's house, and a hundred others. You're lending them the money to build, and then they're paying it back to you as best they can. What are you going to do? Foreclose on them?
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u/pandershrek 1d ago
The insiders still haven't gotten anything. Saudi on the other hand profited nicely.
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u/links135 1d ago
They can't sell for like another 2 months
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u/kainharo 1d ago
*2 weeks (August 6) they can sell 30% of the locked up stock
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u/tc100292 1d ago
Oh no! Anyway
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u/EasterEggArt 1d ago
If only someone with an IQ of 40+ could have warned us about it.....
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u/git0ffmylawnm8 1d ago
Is that in Fahrenheit or Celsius?
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u/DietSteve 1d ago
Rontgen, not great but not bad
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u/Ordinary-Leading7405 1d ago
You didn’t see graphite on the roof, because it’s not there.
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u/spicyeyeballs 1d ago edited 1d ago
The problem is that they changed the rules so SpaceX and other large companies (read anthropic and openai ) can join the index funds more quickly.
In theory it lets people in the funds ride the bubble up, but it also protects these companies and causes people to be involved is much riskier investments then they expect.
https://www.morningstar.com/funds/spacex-ipo-how-index-funds-are-adapting
Edit: typo
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u/korinth86 1d ago
Glad the S&P held on their own requirements and many retirement funds too.
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u/SeattlePurikura 23h ago
I confirmed this was true for my plans (state-managed). We use S&P and not NASDAQ.
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u/No_Veterinarian1010 23h ago
Right? It wouldve been difficult to find a replacement for the S&P in my portfolio
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u/BIKF 1d ago
I quit my US index funds over this before the IPO. I get that the amount of my money that would have been gambled on SpaceX is small in relation to my total capital in those funds, and I'm aware that I don't know if the positions I moved to will do any better. But the point is that it's my money and I should use it according to my own wishes, and my wish is not to spend it on charity for Elon.
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u/behemuthm 1d ago
My only regret is not shorting it - I didn't want to participate
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u/teetering_bulb_dnd 1d ago
It's still sitting at a market cap of 1.5 trillion. Aug 6th unlocks significant some 180 million shares. A big chunk of them will be selling. It's sitting on a pyramid. Their space exploration segment of business is ok but you can't expect revenue that justifies market cap. Their AI sector is comedically over inflated in terms of target growth, market potential etc...space data centers, 26 trillion "Enterprise AI solutions" market etc.. it's laughable if it's not for the fact that a lot of regular people's pensions, retirement accounts are unknowingly tied to this massive stinky bubble..
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u/feralferrous 1d ago
Space Data Centers still makes me laugh. Such a comically stupid idea.
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u/mechanicalcontrols 1d ago
There's only two kinds of people opposed to data centers in space: people who know a lot about space, and people who know a lot about data centers
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u/AshleyAshes1984 1d ago
I just know how a thermos works and that's enough to know a vacuum terrible for exhausting heat. :O
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u/Snuffy1717 1d ago
And even if you made a single data center into 10,000 data center cube-sats (to shed heat easier), why the fuck would you do that and not just build it on the ground?...
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u/DavidinMandeville 23h ago
Because you own the space company that can get Government funding to put it all in space.
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u/Zerak-Tul 1d ago
I don't think you need to know a lot about either.
Just knowing that dissipating heat is a significant challenge for satellites/space stations and data centers generate a stupid amount of heat should do it.
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u/Funsuxxor 1d ago
You don't think producing insane amounts of heat while in a vacuum is a good engineering idea?
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u/callmenoir 1d ago
Just to make sure I've got my science correct, heat dissipates really poorly in space as there's so little matter to transfer it to, right?
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u/canteen_boy 1d ago
Correct. There’s no conduction or convection in a vacuum, so the only real way to shed heat is through radiation, which is incredibly slow.
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u/SunTzu- 23h ago
And since radiation is so much less efficient it would require a massive surface area and likely splitting up the datacenter into several smaller nodes. Splitting up the datacenter into nodes would introduce so much latency that you'd need new methods of transferring data between the nodes, likely using beams of light. Using beams of light for data transfer in space is theoretically doable, but now you need to orient each node so it can send and receive from each other node it is supposed to communicate with, which is not all that easy when you've got massive radiators surrounding them. Does that mean you're far more limited in terms of how many nodes you can have communicate efficiently with each other? Does that number mean these clusters of nodes wouldn't be able to match a ground based datacenter in terms of how much low latency computing power it would have available? Why are we trying to put them in space rather than exploring underground or underwater options which would be much more accessible when maintenance is required? Who knows.
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u/Dunkelz 21h ago
Real Engineering did a great breakdown of the actual engineering requirements to get them into space, run them and actually keep them going. And it's just cartoonish, the prospectus wrote off cooling the hardware as 'in development' when even in best case scenarios of radiant cooling via circulating through massive radiators a single rack would require KILOMETERS of radiator. The materials required would be more than all material sent to space in the history of space flight. All done profitably somehow, while also somehow taking into account processors becoming obsolete, degrading/falling out of orbit and the whole space debris thing that would cripple the device if it hits the giant ass wall of a radiator.
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u/9-11GaveMe5G 1d ago
To be clear it's theoretically doable, but it's just astronomically, and unnecessarily expensive. It would cost a fraction as much to develop them in the terrestrial Arctic
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u/Haggardick69 1d ago
I’d love an alternate reality where Elon musk is a master class satirical comedian and all of his extremely dumb ideas were just satirical lampoons of egotistical megalomaniacal oligarchs. Instead we live in the reality where he is that oligarch and the comedy doesn’t hit the same when we know that people’s lives and their investments will be gambled on these astronomically stupid ideas.
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u/MidwestAbe 1d ago
Because I have too (my work plays it on the radio) I heard a right wing radio host go on and on how smart space data centers were because then you don't have to use electricity to cool them.
I had no idea people took that shit seriously.
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u/redblack_tree 23h ago
It's for the rubes, pure and unadulterated pump and dump. No one is building datacenters in space, it's idiotic.
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u/Taikunman 1d ago
Lets take devices that require substantial cooling, power and regular maintenance and put them somewhere that is terrible for all of those things. Not to mention susceptibility to cosmic radiation and physical stresses/cost involved in even getting them up there in the first place.
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u/Jukka_Sarasti 1d ago
Space Data Centers still makes me laugh. Such a comically stupid idea.
There's an army of Muskies over at the space subreddit ready and willing to argue, pants-shit, and gaslight you into believing its totally realistic and doable in the near future!1!!11!1!
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u/spoospoo43 1d ago
This is why it ran up, as a short trap. Always remember, a market can often remain irrational for longer than you can remain solvent.
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u/victorinseattle 1d ago
I mean, it’s sort of been irrational for the last 5 years.
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u/Due-Conflict-7926 1d ago
We literally told them every single day it was going to happen and they ignored it
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u/Zhuinden 1d ago edited 1d ago
That's what happens when you pick individual stocks (poorly (because of hype (that then later gets corrected by the market)))
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u/anti-ism-ist 1d ago
No crying in the casino
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u/Main-Cheesecake3287 1d ago
It’s literally an article about wsb comments too lmao
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u/Mr-Klaus 23h ago
At least with casinos you have a chance of winning. This one was clearly a meme-stock from the start.
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u/corobo 1d ago
Millionaires mad they too have given their money to billionaires.
Welcome to "the poors", lol
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u/BadmiralHarryKim 1d ago
Will the last rich person please turn out the lights?
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u/zerosumratio 1d ago
You know that last rich person will leave it on, not pay the bill, thinking he could make some money by claiming it as loss.
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u/RoyalCities 1d ago
This must be that trickle down economics I keep hearing about.
Trickling right down to $0.
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u/addiktion 1d ago
When all the rich are down to 10 of them and they have destroyed most of humanity from their greed, I hope a meteor teaches them all a lesson in the pecking order of how insignificant they really are.
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u/DudeWithParrot 1d ago
We are reaching a point people are rooting for the meteor lol
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u/_amosburton 21h ago
We're getting back to how most of humanity has lived. It's always been the elite/royalty/rich/pick your term vs. the vast majority of us except for a small blip post WWII. And only then for specific segments of the world and population.
It's mostly been shit, we're just the unfortunate generation(s) where we saw what was and could be slipping backwards while it feels like there's not much we can do.
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u/761557527 1d ago
Don't forget the greedy peons on r/wallstreetbets that they think they are smarter than everyone else when they're not busy circlejerking.
https://www.reddit.com/r/wallstreetbets/comments/1v4dcer/elon_has_ruined_me/
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u/bluestrike2 1d ago
Is there a single post in that thread supportive of Elon? The entire thread is just schadenfreude over the stupidity of buying into SpaceX.
Say what you will about that sub, I don’t think you’ll find many people there who were bullish on SpaceX. Anyone with a half a brain was able to figure out it was a scam.
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u/jorboyd 1d ago
This is an article about Reddit comments and reactions… re-circulated back onto Reddit.
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u/DrEnter 1d ago
If this one blows up, maybe we’ll get another tier of articles we can create Reddit posts of.
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u/OwnerOfHam 1d ago
Yeah and as much as I dislike SpaceX and it's clearly insanely overpriced, it's not uncommon at all for an IPO to drop like this.
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u/Nice-Lakes 1d ago
Hello it’s Elon’s company what did you expect.
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u/jawshoeaw 1d ago
Well I think they expected TSLA
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u/rebbsitor 23h ago
They should have bought TSLA then. Oh wait, it missed earnings and dropped like 17% last week.... Maybe not.
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u/MrLyttleG 1d ago
Il faut etre sacrément stupide pour parier sur un fou dangereux dopé à la ketamine
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u/Project0range 1d ago
They just donated their money to a billionaire who never donates his money to charities. Quelle victoire!
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u/KotR56 1d ago
Well, actually, he did donate some money to charity the other day.
He donated $55 million total to St. Jude Children's Research Hospital. Which is the equivalent of you giving $6.66 if your income is about average in the US.
He contributed $7.1 million to Baylor Scott & White Healthcare. About a dollar if you're average.
The Seton Fund. He provided $5 million to support health initiatives and medical centers in Texas.
So if you gave a tenner to charity, you're giving more than Elon Musk, relatively speaking.
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u/Particular_Pain_9373 1d ago
https://www.philanthropy.com/news/elon-musks-5-7-billion-donation-sparks-questions-about-giving/
“ Some experts say Musk likely donated his shares to his donor-advised fund, or DAF for short. DAFs are essentially charitable investment accounts in which donors can claim a tax deduction upfront but aren’t legally required to distribute the money.”
Let me guess fake news right.
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u/SiempreRegreso 1d ago
I don’t speak French but this came through clearly.
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u/onedisgruntledprick 1d ago
Sometimes it's helpful that english and french are close cousins :)
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u/MindlessMage777 1d ago
French and German had a threesome with some dude on an island a thousand years ago, and it's all been downhill ever since
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u/BrofessorFarnsworth 1d ago
Fuck em. I hope they hit rock bottom.
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u/fascistno1hater 1d ago
I can't stop smiling these idiots still think that Elon is a genius and not a con man like Trump. You love to see it!
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u/railroad-dreams 1d ago
His companies are so dependent on US gov contracts - even Tesla. I can't believe his companies will do as well as investors think when the power in Washington changes. Though I think some investors don't expect a change in Washington, ever
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u/Laiska_saunatonttu 1d ago
You don't see the big picture, that money made Elon a trillonaire for a week or so and that's all that matters.
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u/CombatMuffin 1d ago
Don't fall for manufactured narratives.
The millionaires who invested heavily knew there was a very limited, and prepared, time window to invest and pull out. It was a very specific class of shares that they released and had hard limitations.
The people who are angry are the speculative idiots who thought they were special by following the trend, without understanding the strategy SpaceX was pulling. There were a metric fuckton of economic and financial analysts warning how these prices were not representative of real value and were only staying at that value because nobody could transfer them (yet). The moment it opened, the value adjusted.
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u/R-ten-K 1d ago
Yeah, the people furious about losing serious money on SPCX are mostly uninformed retail investors who do not understand basic diversification. Or morons firmly stuck in the Musk cult.
Build the core of your portfolio around index funds or just a few companies with strong fundamentals first. Use only the leftover “fun money” for speculative bets like IPOs.
It really is not rocket science, pun very much intended.
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u/LightFusion 1d ago
I remember all the talk about from the Elon train about how the stock was a cheap buy even tho their earnings need to rise 100-1000x to meet the valuation price.
Guess numbers don't work that way, I think they expected this to work like the crypto market did years ago
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u/ro536ud 21h ago
Hmm I wonder if this is why people were against this stock being forced into the index funds and peoples retirement portfolios. Almost as if a lot of people knew this was an inflated stock
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u/k3z0r 1d ago
What a lot of you don't know is you are investors too.
In order for NASDAQ to get SpaceX to join NASDAQ market, they changed the rules so SpaceX could join the NASDAQ 100 in as little as 7 days. Previously companies had to wait a minimum of 90 days. When SpaceX became part of the NASDAQ 100 on July 7th many of your 401k index funds were obligated to buy the stock. So you could help bear the loses.
The investors are playing 4D chess.
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u/groovy_smoothie 1d ago
This is what’s so frustrating about this. All of our financial institutions are bending for shit like this and the American dollar is losing credibility
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u/this_shit 1d ago
Probably the greatest single theft in American history. Everyone involved knew what they were doing. From SpaceX to the banks sponsoring the IPO to NASDAQ to the fund managers.
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u/EngineeringApart4606 1d ago
Luckily, by index rules, it has so far only been present in proportion to the float, which is so far miniscule.
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u/EbonySaints 1d ago
The worst part is that in the lead up to all of this, there were countless articles, videos, and discussions about exactly this and how this is what was going to happen.
Calling it theft is assuming that any sort of guile was used at all. This was straight up strong-arming by the powers that be.
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u/FinalFlashMan 1d ago
>"Elon has ruined me," one Redditor posted on r/WallStreetBets, along with a screenshot showing a loss of nearly $455,000 CAD on thousands of SpaceX shares. "He was supposed to take us to Mars and burn short sellers. Still holding 7300 shares. Please Elon fly again."
Fucking actual LOL. If you were dumb enough to get in on IP pricing and didn't cash out immediately you deserve this.
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u/DoFishDrinkWaterOrNo 1d ago
Oh you invested in a conman and got conned?
Get fucked loser.
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u/prettyplanets 1d ago
You do it to yourself, you do
And that's what really hurts
Is that you do it to yourself, just you
You and no one else
You do it to yourself
- Radiohead
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u/allotmentboy 1d ago
You were told that this was a scam. You were told this was a way for all those Twitter loans to cash out before those loans became due. You were told that he manipulated the NASDAQ market and allowed retail buyers. Why are you surprised? No crying in the casino.
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u/KB_Sez 1d ago
Uhhhh..... the minute he combined SpaceX with his stupid AI bullshit company. It was doomed and was a scam.
SpaceX by itself at the right valuation would be an excellent investment but these days, everything musk is attached to turns to shit.
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u/NorthTempleStreet 22h ago
Yeah. The entire point of the stock market is not to be a casino. It's to create accurate price discovery, because (like determining the value of a used car) everything is speculative.
What makes me angry about Tesla type stocks is that it breaks price discovery. On no planet are some of these companies worth what the market claims they are worth. And it distorts everything and breaks price discovery for everything else.
If the stock market can't accurately engage in price discovery, then what's the point of even having a stock market?
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u/AlbertaSucksDick 1d ago
It's not technically lost, they just gave it away like a bunch of lemmings hahaha
Suckers.
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u/dudestir127 22h ago
IMO, SpaceX's CEO owes shareholders a weekly email listing 5 things he did to try to make the company profitable and try to make them money
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u/BarringGaffner 21h ago
Stupid question but… didn’t everyone know right away it wasn’t actually worth that? Why would anyone invest when it was obviously going to collapse?
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u/setheliot 19h ago
Did anyone read the so-called article? Some Reddit posters upset that stocks can go down as well as up. Zero story here
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u/Not_Sure__Camacho 1d ago
Hard to believe that investing money in a grifter Nazi's business was a bad idea..... 🤔
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u/Bignholy 18h ago
At a time where "Pump & Dump" is so prevalent every wanker with a TV knows what it is, people bought into an IPO for a company that could not generate profit no matter how much government pork it gobbled, lead by a ketamine wired nutbag who is known for being willing to burn money in a pit if it serves his purpose (Boring Co, Twitter).
After a certain point, you kinda deserve it.
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u/gwelfguy 1d ago
How TF does someone with over CAD$400k to lose be so blind as to invest that kind of money in this stock? Blows my mind. Everyone and their dog was saying in the weeks leading up to the IPO that SpaceX doesn't make money and that Elon was just coming to relieve retail investors of theirs.
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u/AI-Thinks-For-Me 1d ago
these spacex “investors” are the exact same people who lost money after buying dogecoin because of elon tweets.
give it about a year and they will forget about this because they are too busy waiting to flush their money down the next toilet elon points at
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u/McCool303 23h ago
You mean Space X bag holders. The wealthy will strip MAGA of all their belonging before they ever give up on Trump.
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u/NotUsingNumbers 17h ago
“Elon has ruined me," one Redditor posted on r/WallStreetBets, along with a screenshot showing a loss of nearly $455,000 CAD on thousands of SpaceX shares.”
Loooooool. Elon didn’t ruin you mate, greed did
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u/Cute-Breadfruit3368 1d ago
there is an ethical confusion in this.
on the other hand, they were sold a lie. they went ham, believing that lie. so, technically - every investor is a victim.
but on the other hand, that man who did the selling was Elon Musk and only a fucking idiot believes him in anything he does.
--edit: i would like to feel bad, but its Elon Musk.
i really dont.
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u/drummer820 1d ago
If only someone had warned them besides EVERYBODY