r/wallstreetbets
SpaceX voting rights
Author questions why SpaceX IPO lacks a valuation discount for Musk's super-voting shares, unlike Snap and Rocket Mortgage.
- SpaceX IPO lacks a valuation discount despite Musk's super-majority voting control, which typically depresses stock prices.
- Investors might be irrationally overvaluing the company due to the 'Elon factor' rather than sound corporate governance.
Musk has a super majority through class B voting shares. He has like 82% or 88% voting control over the company while actually owning 42% of it.
I have seen this type of voting shares be referenced as a reason to discount stock price in companies like Snap and Rocket Mortgage. Both have founders with the same outsize voting power.
There is nothing discount at all about this SpaceX IPO.
Is the difference just Elon?
The difference is Martian pesos
We are selling to willing buyers at the fair market price
the reason for this is because in the field of rocket science, musk knows the most about it, and ordinary retail investors lack the knowledge to make proper decisions. Compared to Rocket Mortgage and Snap, where ordinary people can make decisions for the company, it is very much different, hence there is no discount present.
The price is what people will pay
Pretty much this right here. voting structure only matters if you think management gonna screw you over but when the company is literally sending rockets to space and making bank people dont really care about voting rights
Same thing happened with Google back in the day - dual class shares but nobody cared because the money kept flowing