Report: SpaceX IPO gives Musk unchecked power and forbids investor lawsuits
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MilanKraft
Ars Tribunus Angusticlavius
Dear Fund Managers: for the love of God, please do not pollute all of your high return, low fee index-like funds with holdings of this jackball's company.
What they should do (but won't) is literally have a "Musk Fund" so that SpaceX, Tesla, and anything else which is under his control or heavily dependent upon / otherwise looped into to his company's business cycles, is in said fund, and then whatever they want to use as risk offsets, and nothing else. That is, no other funds would be exposed to his BS.
Investors can't sue... right. Kindly go fuck yourself with a hedge trimmer, asshole.
What they should do (but won't) is literally have a "Musk Fund" so that SpaceX, Tesla, and anything else which is under his control or heavily dependent upon / otherwise looped into to his company's business cycles, is in said fund, and then whatever they want to use as risk offsets, and nothing else. That is, no other funds would be exposed to his BS.
Investors can't sue... right. Kindly go fuck yourself with a hedge trimmer, asshole.
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I can't imagine a bigger red flag for an IPO than the CEO making themself completely untouchable. Why anyone would invest in such a company is beyond me.
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Yeah. IPOs are really about potential and hype, but the real test is going to be the first earnings report (which they actually have to do publicly no matter what).
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".. and requires a Grok subscription of banks, law firms, auditors and other advisers working on the I.P.O. " (nottheonion)
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It's profitability that matters, not market cap. You can make a lot of money investing in that European "blip,' so focus on that!
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Also, stock exchanges generally have listing rules which give investors greater protection than the general law requires. I'm not in the US but here listed companies have quite a bit less freedom of movement, so to speak, than private and unlisted ones.
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Just in time for the switch from quarterly earnings reports to 2x/year earnings reports.
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So the only way to have standing is probably to be an investor but to invest you cannot sue?
Why he is he able to pull a "You will do what I say and like it. Why? Because I said so. If for some reason you don't like it there is the door but good luck ya chump?" in corporate speak?
It's bullshit when parents don't let their kids have a respectable amount of agency and bullshit when a corporation, which is supposed to be beholden to its investors, goes against that 'Merican freedom to say what I want to say and to sue the living pants off of you!
Why he is he able to pull a "You will do what I say and like it. Why? Because I said so. If for some reason you don't like it there is the door but good luck ya chump?" in corporate speak?
It's bullshit when parents don't let their kids have a respectable amount of agency and bullshit when a corporation, which is supposed to be beholden to its investors, goes against that 'Merican freedom to say what I want to say and to sue the living pants off of you!
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Statistical
Ars Legatus Legionis
Binding arbitration has been around for decades and found to be legal. Until this year though the SEC prohibited binding arbitration (no matter how legal) in shareholder agreements for publicly traded companies. Now they do not. The best government money can buy.
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I've been wishing for a VXE(lon) ETF for some time. But I'm guessing he'd probably sue any major fund company willing to make one. (Just like suing companies that refused to advertise on Twitter)
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Statistical
Ars Legatus Legionis
With binding arbitration there is no after hence the binding.
Binding arbitration has been ruled legal in the US for 30 years now. Initially it was rare and today it is essentially in every contract everywhere from Netflix to plane tickets to cell phone plans to credit cards to new car purchase agreements. This year according to the SEC it is allowed in shareholder prospectus.
If you ever doubt yourself because something is illegal where you are, and just seems downright unfair, so you wonder if you are missing some context on how can this be legal in the US, the answer is always unchecked capitalism. Non-zero chance we bring back indentured servitude, totally 'voluntary' of course. I mean think of all the profits to be made. Throw in provisions that make debts inheritable and tada neo-feudalism.
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Unlimited power, no accountability. Check and check. I was already going to NOT invest. The IPO will be ridiculously overpriced and sell out anyway.
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Poor Elon, he must be really struggling financially 
Hope he gets to have better meals than instant noodles.
Hope he gets to have better meals than instant noodles.
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Are we expected to "read the fine print" of every single stock on the index that our employers force our 401ks into? If I disagree, am I forced to then manually buy every stock on the index except for the ones with these poison pills in them, and then spend hours rebalancing manually every month?
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Oh come on: Musk is doing exactly what I would do if I shared his questionable ethics and not-infrequent impulsive outbursts.
Thank goodness I do not.
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So fucking what? Are you saying that the price for profits is abusing investors?
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So, let me see if I understand this: in the epitome of capitalism, the owners (shareholders) have regressed to being nothing but peons for the Corporation.
What's next? You can only sell your shares back to the company at nominal value?
What's next? You can only sell your shares back to the company at nominal value?
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Thank you, we do what we can. I drive a Mercedes, not a Tesla. I use Claude, not Grok. And I try to be polite to Musk fanboys when I meet them. In short, I do what I can, which is not much, but it is something.
Oh, and I refer to Musk as Nazi
at every opportunity, as I really don’t think anyone should forget what he truly is.
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Any legitimate court would hold this provision void against public policy
Then again, if he reincorporate in Texas instead of Delaware, Texas has already proven they’re for sale, and musk has already proven he’s bought them.
In Delaware, even though the Space-X provision says a stockholder “waives all rights to pursue a jury trial”— Delaware trials of equity are not before a jury. The court of Chancery has only a chancellor as its judge, no jury is involved.
Then again, if he reincorporate in Texas instead of Delaware, Texas has already proven they’re for sale, and musk has already proven he’s bought them.
In Delaware, even though the Space-X provision says a stockholder “waives all rights to pursue a jury trial”— Delaware trials of equity are not before a jury. The court of Chancery has only a chancellor as its judge, no jury is involved.
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It’s just cult like behaviour that anyone could think Elon Musk is a good person to give money to. Sadly the unprecedented change to include SpaceX in the Nasdaq index means Funds will have to buy it. Makes no sense what are you buying? No control shares over Elons private company which will be losing Billions a year from XAI and X, both burning money with no viable business plan. This has to fall apart before the IPo - the financials when they are released must be absolutely ridiculously bad. Usually investing in a company gets you something more than ‘Nothing’ which is what this gets you. There should be accountability for Rubes like Canada Pension Plan Investment Board (CPPIB) CEO John Graham
It’s the pension funds that fund Nazi Musk. https://www.nationalobserver.com/2026/01/20/news/cpp-canada-pension-investments-xai
It’s the pension funds that fund Nazi Musk. https://www.nationalobserver.com/2026/01/20/news/cpp-canada-pension-investments-xai
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on the one hand, fuck musk
on the other hand, this should help keep spacex clear of shitty activist investors
on the other other hand, elon musk is a shitty activist investor
literally no winning, here
on the other hand, this should help keep spacex clear of shitty activist investors
on the other other hand, elon musk is a shitty activist investor
literally no winning, here
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carbon60Unit
Ars Centurion
I want Musk to fail spectacularly, not SpaceX. Unfortunately, they are rather firmly linked. During the rise of SpaceX, Musk did not seem such a monster. It seemed to me that that emerged about the time of the first landings. Was it there all along and I just didn't see it or he was hiding it well up to then? Or did he really get worse after SpaceX "made it"? I'm still enamored with what SpaceX is doing and want them to succeed, just not Musk. Best case is legal trouble or something that separates him from the company.
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Index and mutual funds will buy shares because of how they work it's basically automated and pension funds invest in index and mutual funds.
If SpaceX gets into the big indexes then everyone is going to own shares in this company just like they do Tesla.
The entire point of these funds is to follow the index not personal belief/opinion.
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This definitely sounds like the kind of thing a person with integrity would need while running a corporation. 100% normal. SMFH.
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Building a city in Antarctica is a much better, easier, and more profitable endeavor by orders of magnitude. Does building a city in Antarctica sound kind of dumb? Well, building a city on Mars is thousands of times dumber. Even if Musk actually was capable of doing it in his lifetime, which he isn't.
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Wall street went full moron years ago.
As has been said, many times, anyone investing in anything Musk deserves their losses. It's not like they haven't had ample warning.
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It's unfortunate that this is going to end up in the S&P 500 index (and any other index that mirrors the broader market) and cost me money when Elon does more fraud.
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Well, giving him unimaginable power, control and wealth has certainly gone well so far and definitely hasn’t shattered his psyche like a cheap plate in a shooting gallery, so sure, what the fuck, let’s give it a rip.
Every detail here is insane and I don’t want to devalue that, but this is subtly and particularly so. These are two functionally incompatible roles according to any defensible structure of corporate governance. It’s like letting the dog take the human for a walk.
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These are not shares in a corporation, or membership interests in an LLC, or any other form of ownership stake in a business that an investor would be familiar with.
These are essentially unsecured loans (at the issue price) with no stated interest rate, date of maturity, or even intrinsic value (since there does not appear to be anything to prevent SpaceX from issuing additional "shares" and simply diluting whatever fractional claim to a market capitalization the holder thinks that they have).
There's no ability for shareholders to engage in a tender offer, compel a dividend, influence a board of directors to set policies and strategies, or do anything to better the value of their stake beyond trade their digital bits with others who think that someone else will eventually pay more for those digital bits. Meanwhile, Elon will spend what the business is worth even faster than he says, and far faster than you thought (that project was originally supposed to be $20 billion of capex, now it's 500% larger in a mere two months).
Hurry up and buy the SpaceX NFT so you don't miss out. And yes, that analogy to an NFT is very intentional on my part.
These are essentially unsecured loans (at the issue price) with no stated interest rate, date of maturity, or even intrinsic value (since there does not appear to be anything to prevent SpaceX from issuing additional "shares" and simply diluting whatever fractional claim to a market capitalization the holder thinks that they have).
There's no ability for shareholders to engage in a tender offer, compel a dividend, influence a board of directors to set policies and strategies, or do anything to better the value of their stake beyond trade their digital bits with others who think that someone else will eventually pay more for those digital bits. Meanwhile, Elon will spend what the business is worth even faster than he says, and far faster than you thought (that project was originally supposed to be $20 billion of capex, now it's 500% larger in a mere two months).
Hurry up and buy the SpaceX NFT so you don't miss out. And yes, that analogy to an NFT is very intentional on my part.
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Maybe he fully understands that if Democrats get into power he is 100% F'd as the gravy train disappears then too.
He will be hoovering off as much as he can through an obscene salary, so when it all falls over, he comes out fine and can not be touched.
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Assumptions of normalcy like this are not going to save us.
I’m not sure who thinks the market is operating according to fundamentals, but I’ve got some really shocking news for you about how data center is an AI in general are being funded.
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