SpaceX Investors Face Long Waits and Fraud Fears

SpaceX is a famous space company. The company will sell shares to the public on Friday. Many investors want SpaceX shares. So, they pool their money in special groups. People call these groups SPVs.

But SpaceX has a new problem. Many SPVs bought shares from other SPVs. Sometimes there are four or five groups in a long line. Now, many investors do not know their share numbers. Some investors will get nothing. Two other companies, Anthropic and Anduril, do not allow these long lines.

Investors must wait a long time for their shares. SpaceX has special rules for the start. Insiders cannot sell their shares right away. This rule stops heavy selling on the stock market. First, the top group gets the shares. They have thirty days to give the shares to the next group. Then, the next group has thirty days. Justin Ernest is a financial manager. He thinks the bottom group will wait eight or nine months.

Many investors worry about money. Some managers will take high fees. Then, the investors will get fewer shares. Communication is also very bad. Each group only talks to the group above it. Sometimes managers do not talk at all. Nick Davidov is a business founder. He told a story about his friend. His friend bought SpaceX shares in 2021. The manager stopped answering emails a year ago.

Some managers are dishonest. Giovanni Pennetta went to prison for four years. He lied about shares in the Anduril company. Idan Miller works in finance. He expects more problems. He thinks people will find more bad managers after the waiting period.