r/stocks
Only 4% of SpaceX was taken public, how exactly is that a rug pull?
The author questions the narrative that SpaceX's IPO is a rug pull, noting insiders retain 96% of the company.
- Insiders retain 96% of the company, contradicting the narrative of a massive insider cash-out.
- Elon Musk directly holds around 45% of the company, aligning his interests with public shareholders.
I keep seeing this sentiment echoed literally everywhere on the internet, but especially on investing subs.
I'm not arguing that SpaceX is necessarily a good investment or that the valuation and financials make sense, but if it's legitimately a Ponzi scheme where insiders are going to do a rug pull, why exactly would you keep 96% of the company private (45%ish of which is owned directly by Musk)?
How are they getting rid of the bag if they're still holding onto pretty much the entirety of the bag?
Please, educate me with your superior intellect and deep insights, because I genuinely do not understand how so many people can hold this perspective.