Unfortunately a lot of larger funds buy or follow S&P500. Tesla is currently ranked in 9th place on the 500 list, weighing in at 1.77% of the index.

What scares me is like the top 10 companies on that are resting heavily on AI. Like 30% of the S&P is gonna get hit hard if the AI bubble pops

https://stockanalysis.com/etf/spy/holdings/

Only the S&p 500 rejected it from what I am aware. It's in Nasdaq and probably others

Idk, most recent news I've seen was just that the change had been challenged by a bunch of states but it hadn't been stopped yet

12-Month "Seasoning": A company must trade publicly on a major exchange for at least 12 months. Got to wait until at least next year

Profitability: A company must report positive GAAP net income over the most recent quarter, and over the last four quarters combined. Starlink is profitable, and the rockets are almost break even. xAI, Twitter and all the other shit means a 5bn loss

Float Requirements: The company must have a sufficient amount of its shares available for public trading (at least 10%). SpaceX float was 4.3%. More shares need to be offered

My wife's distant cousin or something who we see at some holidays bought a cybertruck a few years ago and actually had a party for when he brought it home. At said party he was planning on taking people on rides but something happened and it wouldn't start. So he drove it home, parked it in his garage, tried to suck his own dick and instead got a very expensive paper weight. Last I heard it was still just sitting there because it would cost too much to fix and he was fighting with the company, but still singing praises.

There’s a ton of them out there. Lotta idiots, lotta people who only care about themselves.

You can configure your 401k to not be involved in this nonsense. I moved my US stock holdings to a few value-based index funds. The ones I'm in now have a 0.25% expense ratio. Still not as low as an S&P 500 or similar index fund (usually about 0.01-0.025%), but still better than most traditional managed mutual funds (1-2% range). But what's good about funds like this is that they don't weight the index based on market cap. They don't try to have the index track the dow, the nasdaq, or the S&P 500, which are all based on market caps based on present trading price. Instead, these value index funds weight based on objective measures, rather than market price. These measures include things like actual revenue, book value, debt level, etc.

You can still get broad market participation at low management cost while avoiding the AI IPO grift.

Apparently investors also separate money from money because tesla's valuation makes absolutely no sense from a money perspective either with a PE ratio of over 300.

What you're describing aren't investors, but gamblers benefiting from a rigged market.

There is no way to invest in SpaceX while separating morals from money. The only reason to invest in it is vibes - aka personal morals.

If you actually read their IPO documents, their assumed valuation is based on a comically large assumed customer market. In order to justify their IPO price, they assume that long term they will be getting about $30,000/year in revenue from 1 billion people. Take literally every person in the developed world. And then assume every single one of them is paying SpaceX $30k per year for some reason. That's literally, per SpaceX's own documents, what it would take to justify their IPO price. And the only way you're making a profit on that is if the price goes even higher.

In order to grow 400x, SpaceX would have a market cap of $800 trillion. Global GDP is only $130 trillion. The only way to think a SpaceX investment is a good idea is the greater fool theory.

Tesla wasn’t worth a trillion dollar though.

SpaceX at IPO is already one of the biggest companies around.

Sure it could become 400x but that would be far more likely if it was worth a few billion.

Honestly, that is worse than I expected.

Well thank you,

Your comment killed any FOMO I had.