Gerber Kawasaki Wealth & Investment Management CEO Ross Gerber raised a red flag Tuesday.
He wrote on X: “Highly unusual to demand being included in the index from the ipo. This guarantees buyers of passive funds to support the stock without the typical period when markets find their value… it also helps for insider selling… $tsla”
Gerber made the comment following a Reuters report citing four anonymous sources familiar with the company’s plans.
SpaceX’s Nasdaq Plans
It was reported that Elon Musk‘s SpaceX is leaning toward listing on the Nasdaq. The company wants early inclusion in the Nasdaq 100 index as a condition of any listing.
Tesla Inc. (NASDAQ:TSLA) CEO Musk appeared to confirm a $1.75 trillion IPO valuation on March 2. Responding to entrepreneur Peter Diamandis on X, Musk simply replied: “Yes.”
SpaceX did not immediately respond to Benzinga’s request for comment.
The IPO Details
SpaceX targets a June listing raising up to $50 billion. That would top Saudi Aramco‘s $29 billion debut, making it history’s largest IPO.
Citigroup Inc. joined the banking syndicate last week per Bloomberg, alongside Bank of America, Goldman Sachs, JPMorgan Chase and Morgan Stanley.
Analysts Divided
“Whether SpaceX can get there is really a moonshot,” accounting expert Jack Ciesielski told Fortune.
PitchBook‘s Franco Granda disagreed earlier this month, calling the target achievable given Starlink‘s “gigantic” growth opportunities.
SpaceX is reportedly weighing a dual-class share structure. That would give insiders, including Musk, outsized voting power — similar to structures used by Alphabet Inc. (NASDAQ:GOOGL) (NASDAQ:GOOG) and Meta Platforms Inc. (NASDAQ:META).
SpaceX also completed its acquisition of Musk’s AI startup xAI earlier this year.
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