00:00It's Benzinga, bringing Wall Street to Main Street.
00:02Economist Robert Reich condemned the planned SpaceX IPO on Thursday,
00:07calling it a potential Ponzi scheme in a post on X linking to his Substack article.
00:12Reich criticized Elon Musk for pricing SpaceX stock at roughly 100 times the company's total
00:172025 revenue of $18.7 billion. He argued the IPO relies on inherently speculative goals
00:24like interplanetary inhabitation and interstellar travel, calling it nothing more than a show of
00:29faith in Musk. Reich also raised governance concerns, noting Musk's Class B shares carry
00:3510 times the voting power of public shares. He warned that Americans with savings and index funds
00:40would be automatically exposed to SpaceX's market value. Senator Elizabeth Warren separately called
00:46for delaying the IPO, citing concerns about misleading or inaccurate valuation accounting.
00:52For all things money, visit Benzinga.com.
Comments