Will SpaceX be the next Enron?
This is probably a little click-bait-y, but I'm curious what the real analysis shows. Reddit being Reddit seems to hate on anything Elon, so it's all doom and gloom. Reddit says the retail investors are going to be the bag holders for the institutions to cash out, especially with the index rule changes.
My take on the $2T valuation is that investors are making the bet that SpaceX can 10x its profit in the next 5 years. If successful, then I don't think the current valuation is as absurd as the Reddit seems to believe. It's certainly a risk and a bull case for the stock, but I wouldn't necessarily bet against it. If I recall correctly, NVDA and TSLA both scaled even faster at their peaks. I also personally believe that SpaceX has such a big moat compared to other companies that there really isn't any meaningful competition.
I also think the low initial float isn't necessarily a bad thing. There are so many employees that want to offload the stock, that I think the float will increase very quickly. These are employees that have been holding the stock for 5, 10, 15+ years and finally have the opportunity to pull their cash out. Sure, there have been liquidity events over the years, but they have also been oversubscribed, so the employees haven't been able to diversify as much as they want.
Full disclosure, I worked there for over 10 years, so I have quite a bit of insight into the industry and how the company works. I'm not a fanboy, but I'm also not a hater, so I'm sure I'll get downvoted in the reddit sphere.