The Danish pension fund Akademikerpension has withdrawn its investment in SpaceX, citing poor governance structure. Elon Musk controls 85% of voting power, leaving minority shareholders without the ability to influence. The company is seeking a valuation of up to $1.8 trillion in its IPO, a figure many analysts consider disproportionate relative to its actual revenues.
Absolute control and high valuation: the technical risks of the IPO 🚀
SpaceX's governance structure concentrates power in a single person, a model uncommon in publicly traded companies. For investors, this means accepting unilateral decisions without the possibility of veto. Furthermore, the valuation of $1.8 trillion contrasts with estimated revenues of $8.7 billion for 2023. The price-to-revenue ratio exceeds 200 times, far above established technology companies. This scenario raises doubts about the ability to generate long-term returns for minority shareholders.
Investing in SpaceX: where your vote is worth less than an Elon tweet 😅
So, if you decide to buy SpaceX shares, remember that your voting power will be similar to that of a passenger on a rocket: zero. You'll be able to watch the launch, but not suggest course changes. However, you'll have the privilege of paying an astronomical price for a company where important decisions are made in a single mind. At least, you won't need a spacesuit to feel the void in your wallet.