Report: SpaceX IPO gives Musk unchecked power and forbids investor lawsuits
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I genuinely hope any shareholder who invested in Musk loses everything. This is what they get. The man has been a cruel, unhinged fucking animal for the last ten years. What the fuck do you expect is going to happen? He's a monster with zero regard for humanity who spent a quarter billion dollars buying the president. He will have no accountability for what he does and if you still want to saddle up and try to get rich, you deserve failure.
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Is this going to be like that Disney food allergy suit, and investors won't even be able to sue if a rocket part or Internet satellite falls on their homes?
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My employer chosen, corporately managed retirement investment account might end up investing in SpaceX without my knowledge. I'm willing to lose a portion of my retirement to see Musk fail badly, but I'm not sure it's fair to say others in a similar position deserve their losses if SpaceX fails.
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When you are so confident in your superiority that you are terrified of any challenge.
What a broken man.
What a broken man.
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I think it was worse than that, weren't they Diz+ subscribers and the corporate lawyers argued that the arbitration you were forced to agree to for streaming also applied to the theme park?
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Bleakly hilarious that people with a minor ownership stake in SpaceX would have weaker de jure protection from bad actions taken by the company than some rando off the street.
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You mean everyone who's a passive investor in Nasdaq ETFs? Nasdaq changed their rules to get SpaceX in early (15 days post-IPO), and overweight (!) (3x weighting for companies with <20% free float). Ugh.
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I wonder how hard it would be to track how much my mutual funds have invested in SpaceX post-IPO and short it as a hedge.
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Mostly Ignorant
Ars Centurion
The interesting part will be employer 401ks that choose to add a position in SpaceX to their portfolio. In this example, I never actually chose that, but I suspect the rule of not being able to sue would apply to me.
That said, I'm not a finance expert so I'm open to being told I'm wrong.
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I'm not an expert, but my understanding is that with ETFs and mutual funds, the fund owns the stock and you're just a shareholder of the fund.
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Most likely. At some time, I think he will have to actually show the financials for SpaceX and associated companies and that's what they will be looking at and care about.
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Are there no laws that invalidate these terms? If not maybe there should be. I am just pessimistic to this getting done under this administration.
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I don't know how it is in the US, but where I live contracts can't remove rights granted by the state.
If the government says that everybody has the right to sue for redress, then you can't sign a contract waiving that right. Yeah, you can go to arbitration first, but if arbitration fails you can still sue afterwards.
If the government says that everybody has the right to sue for redress, then you can't sign a contract waiving that right. Yeah, you can go to arbitration first, but if arbitration fails you can still sue afterwards.
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No ... until they offload those shares to someone else, then hell yes. "Not my problem any more". Just watch Margin Call and/or The Big Short for reference.
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How do you enforce this? Stock is traded on an open market. I have a Robinhood account with tiny investments in dozens of companies, and I don't agree to anything when I purchase stock, aside from whatever is in the terms and conditions between myself and Robinhood.
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Cthel asks the relevant question above. IANAL, but believe a very strong case can be made this would be nonconsentual, if not duress given he also demanded preferential inclusions on indexes.
Either way, insert the relevant Lando Calrissian quote here.
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Gutting things (democracy, justice, equality, morality, compassion...)is addictive and additive and self-propagating. The US is beyond the point-of-no-return.
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you already can't sue SpaceX if you're only invested in it via an index fund. Your privity is between you and the index, not you and spacex.
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By definition, any investor who takes the bait is unqualified to be an investor: this is an unequivocal money grab, nothing more, nothing less. Billions are going to go to MuskX, excuse me, SpaceX, and just vanish.
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"Shut up, groveling peons, and give me your money! How I use it does not concern you. It will surely be for things greater than you can comprehend." Elon Musk's approach seems to have a lot in common with cults or Communist dictatorships.
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"Musk is an unreasonable jerk, but I want to cash in! Whatever shall I do?"
/hand wringing
Yeah, that's a real dilemma you've got there, Mr IPO Investor.
/hand wringing
Yeah, that's a real dilemma you've got there, Mr IPO Investor.
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Wall Street will make a shit ton of money off the IPO. They're happy.
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A company can issue different classes of shares with different rights as defined in the company's bylaws, and SpaceX seems to be taking this to the extreme. Not entirely sure about all the rules, but perhaps not all classes of shares need to be publicly traded or included in the IPO. At any rate, Musk merely needs to hold on to the super shares and let the public trade solely in other much more inferior shares.
But I am surprised that a company would be allowed to go public using such an extreme arrangement that goes totally against the entire notion of being a public company.
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At some point, he'll do something stupid worthy of a lawsuit, and they'll have no ability to make themselves whole again from the damage.
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Many people will unknowingly invest. Do you have a 401k? Are you a member of the TSP?
If you have a 401k, index funds, are a Federal employee, have a state (any state) retirement, teacher retirement, or served in the US military it will be hard to not be an investor.
Musk secured a significant amount of critical Tesla investment through the TSP S fund.
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