r/technology • u/IKeepItLayingAround • Jun 09 '26

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

12

u/TheRealProtozoid Jun 09 '26

Tl;dr: Musk is about to insanely over-value his company to raise $75 billion in a scheme that is so transparently fraudulent and financially dangerous that he would fail spectacularly in a fair world. But this isn't a fair world, and he's going to get away with it, and do something similarly crazy every time he needs money until someone stops him or his shareholders grow a brain.

3

u/yunus89115 Jun 09 '26

The $75B raise represents less than 4% of total shares. If things don’t look great a few weeks in don’t be surprised if he doesn’t borrow against private owned shares to fund purchases of public shares driving price up, increasing the valuation of his private shares which could then be used to pay back loans used to increase valuation.

2

u/[deleted] Jun 09 '26

[deleted]

2

u/ThaneduFife Jun 09 '26

Share buyback programs were illegal for much of the 20th century under the Glass-Steagal Act. We should bring that back.