SpaceX IPO Set to Drive Billions in Tech Stock Sales
Fund managers are planning strategies for raising cash to grab shares of Elon Musk’s space company when they debut.
A jet painted with SpaceX logos ferried nearly 200 investors from the largest Wall Street funds from Newark, N.J., to the southern tip of Texas a week and a half ago for a multiday presentation from executives. The airplane was so full it couldn’t fit everyone who wanted to get on, said an investor on the trip.
The massive initial public offering for Elon Musk’s rocket-and-AI company, still more than a month away, has investors debating what to sell to make room for SpaceX shares. While they think about data centers in space, model a potential $1.5 trillion valuation and gawk at SpaceX’s enormous financial losses after it bought xAI, they are also making plans to raise cash to buy into the offering. Investors at some of the world’s largest mutual funds have said they are considering trimming stakes in other tech stocks to free up cash to buy SpaceX shares.