What I find interesting about this is that everybody knew exactly what would happen, and then it happened. It’s a perfect counterexample to the logic of “this system isn’t perfect, but it’s the best thing we have.” It’s just the rich and powerful using leveraging their wealth and power to become even more so, and under the current rules nobody can stop them.
Good. Choke on it, Elon.
Musk = POS Nazi.
Musk is already the person who lost the most wealth a while ago (biggest loser ever to have walked this earth). So now he beats his own record.
The world’s first ex-trillionaire. Back to tres commas for you.
“vanishes” from the pockets of buyers into the pockets of the IPOers
Musk is the world’s first zeronaire.
Hey, I was here first!
Shame the SEC will not stomp on the neo-Nazi.
I knew I should have shorted it 😭
The market can stay irrational longer than you can stay solvent.
The stock hit $123 on Friday. It’s still got a $1.6T market cap. I have no idea where they got that headline from.
I have no idea where they got that headline from.
The “IPO price” for institutions (banks, hedge funds, a tiny bit for retail brokers) was $135. It opened on the public market at $150-something.
Still perhaps more than the company is worth, but at this point an institution that fought to get in on the IPO would be down 23% (unless they dumped it, which plenty did).
Because the high was just over $200. They are talking from its peak.
In a way SpaceX did me a favor. I dumped my NASDAQ composite fund before they started carrying SpaceX. It’s been on a downward trend ever since.
Maybe it’s been on a downward trend because of SpaceX?
Im pretty sure that is what they are implying
Obvious Pump & Dump Sees Investor Slump, more at 11
If I coukd afford puts I would have done it, saw this from a mile away
Not to worry I’m sure the trillion was mostly just from pleb 401ks.
That trillion doesn’t exist. It didn’t go anywhere.
It does exist and it was moved from poor people to the rich. As always.
Well yes but that doesn’t mean an entire trillion dollars existed first. Valuation goes by the latest trade price, not total purchase price of all stocks.
A million people could all buy a share of something that has a million shares for 1 dollar and then the some person buys one off one of the investors for 1000 dollars and nobody’s selling for any less than that. Congratulations, it’s now a billion dollar company. Now some people realize it’s a bubble and lower their sell price to 10 dollars. A few people buy. It’s now a 10 million dollar company. 990 million was wiped off the stock market.
That obviously simplifies it but you get the point.
It moves when other buy and sell yes, but think about elon holding the stock. He “lost billions” but no money moved. So in this case the money never existed.
If you can use it as collateral, then it exists just as much as a house or property does.
I dread to think what he managed to spend it on this past couple of months. Hopefully no more “judo lessons” on suspicious islands
The stock exists yes, but the money didn’t exist. It only exists one you loan out then money is “created” though fractional lending. No elon created trillions of cash, not hoarded.
There is two truths to this: not 100% of the company exchanged hands. The part that hasn’t changed hands only lost perceived value, no money has moved. The part that is exchanging hands is real people losing and winning real money.
So much of this is blogger brain, with people hearing rumors based on clickbait headlines, and having no idea how the money moved around.
The major index that bought into SpaceX on IPO day was the NASDAQ-100. S&P and DOW indexes have not yet included it.
While US ETFs currently own around $16 billion worth of the stock across 179 ETF products, that’s around 1% of the total market cap of the firm. The single largest shareholder - at around 44% of the market cap - is Elon himself. Another 20-odd% is owned by various private equity funds that are a whose-who of the modern tech sector - Google, Peter Thiel’s Founders Fund, Sequoia Capital, and Andreessen Horowitz - along with your standard assortment of Wall Street banks - Baillie Gifford, Baron Capital Group, T. Rowe Price, and Valor Equity Partners.
Nobody has actually cashed out yet, in any meaningful capacity. But because the stock slipped off it’s IPO high, we’re getting a bunch of screaming know-nothings who insist they’ve all been robbed.
Well put!
It does exist. People used it to buy overvalued stock and people who knew how this was going to go got their money. The money is real, it just changed hands.
Yes, but that doesn’t mean it was a trillion dollars that changed hands, or even anywhere close to a trillion necessarily.
It didn’t vanish. The early investors got their money and the naive buyers left holding their empty bags.
This is what they call exit liquidity.Exit liquidity refers to investors who buy assets at inflated prices, enabling earlier investors to sell at a profit.
These later investors often incur losses as asset values decline.It is very common in crypto and in volatile tech stocks.
They also got it on the NASDAQ so if you have an index fund that follows that you bought into it.
I exited out of all American ETFs earlier this year so I’m feeling good about myself lol
Ditto
Early investors are still in their lock in period.
A lot of people really dont understand this.
SpaceX got the money. Its on their balance sheet.
Everyone who bought at $135 IPO price was giving money to SpaceX.
Everyone since then is just trading shares between each other.
The real shitshow starts once insiders can sell, until that happens we wont really know what price the market will settle at.
This is mainly just showing a lot of option conversions / actions that happened because of the merger / IPO.
There’s a small sale on the first form in March, and the 2nd form in April
What’s a typical lock in period?
Usually around 6 months, but they pulled some shenanigans to make it shorter somehow, but i dont really know the specifics in this case.
Those shenanigans being “corruption” in this case.
I wouldn’t rule out possible blackmail or extortion either.
The article says nearly 1B shares can be sold next month
For reference, of all the shares that were sold in the IPO, only 281m are able to be traded, the rest are in their own lockup periods from institutional investors. So 1b potential shares flooding the market in 1 month could increase the float by 3.56x
How early?
I made my entry on the 8th June and sold on the 15th June expecting the crash.(To any zealot wanting to dump on me for trying to acquire wealth for a home: Please leave out any musk bad, spacex bad etc. comments out. Not interested in those)
What topics are we allowed to bring up, my lord?
Hate the game, not the player
The big players that invested years ago. They aren’t allowed to dump their stock on day 1 because of the obvious issues. But as they are allowed to sell, that increases the selling pressure as well as increasing the share pool available.
Ah I see, the pre-IPO share holders.
Hey, the orange pedophile is good at doing that too, with his stupid ass coins, and phone and anything really
No shit. A valution of 100x more than yearly revenue (never mind profits) should never have existed in the first place, and was most certainly a pump and dump.
Anyone who actually thought the stock price was going up from there was delusional.
And how SpaceX got into the NASDAQ is very corrupt. They fast tracked SpaceX’s IPO by breaking their own rules but still applied the same old rules to any companies applying for IPO after SpaceX. The folks In NASDAQ must have gotten under the table financial incentive from Musk.
Hope both SpaceX keeps dropping and NASDAQ faces a class action for this obviously corruption.
The delusional people run the world these days, unfortunately.
Pretty sure it’s conmen running the world, with the delusional propping them up
The conmen are very delusional too.
That may be up to us: if they think they can get away with it, it will be our task to prove their gamble wrong. That won’t be an easy road, unfortunately.
Who could possibly have foreseen this! It’s an utter mystery!
It’s a GOOD thing Illegal Immigrant Elon Musk FORCED YOU to Invest in this Company with your Retirement Accounts!
Capitalism working as expected…
A very interesting point.
Your retirement account has to follow some rules, for example to buy large ETFs. Large ETFs have to follow stock indexes. Stock indexes have to include “big” companies.
So when a big AND inflated company comes along, makes it into the index, and then deflates, you all are screwed automatically and by all the rules.
To prevent this, there were rules in place that stipulated that a reasonable time had to pass for a new company to enter the index after IPO. Strangely, they scrapped that rule just before this one…
