Gamma, Did Elon Musk Just Rig The Stock Market?

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May 31May 31

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This post is dedicated to GG, for his love of everything that smells of Musk and his distaste for anything of the Altman variety.

We know he’s been too shy to talk about Elon’s frivolous case against OpenAI getting tossed out of court on its arse. But Elon’s latest plans to rig the world economy are much bigger, more maniacal, and can’t be ignored.

The video below is worth watching, and a summary of the key points follows.

Video summary:

There is a narrative being pushed that SpaceX is being positioned for one of the most distorted public market entries in modern history, not through outright fraud in the traditional sense, but through a series of structural moves that collectively create what looks like a manufactured liquidity event.

At the centre of it is the claim that SpaceX is being floated at a $1.75 trillion valuation, which implies roughly a 50x revenue multiple, an extreme level by historical standards. For comparison, major tech companies at IPO have typically come in at far lower multiples, with something like Facebook being closer to 10x at the time. The argument being made is that this kind of pricing is so stretched that sophisticated capital is hesitant to participate, which is why a disproportionately large share allocation, around 30%, is allegedly being directed toward retail investors rather than the usual small institutional slice. The implication is that when professional capital steps back and retail is leaned on more heavily, it is often because price discovery has become detached from fundamentals.

A second strand of the argument connects this to a broader internal financial reshuffling involving Twitter and xAI. The claim is that earlier investors tied up in the Twitter acquisition have been left in a difficult position after the asset underperformed, and that subsequent restructuring and consolidation into related entities has effectively turned parts of this ecosystem into a mechanism for converting illiquid or underwater positions into paper gains. In this framing, the SpaceX public listing is not just a fundraising event, but also a liquidity release valve for those earlier backers.

The most critical mechanism described is the proposed inclusion of SpaceX into the NASDAQ 100 on an accelerated timeline. Normally, new listings are required to establish a trading history before being eligible for major index inclusion, which naturally staggers institutional demand. The argument here is that rule changes now allow for extremely rapid inclusion of large new listings, compressing that timeline dramatically. It is further suggested that listing venue selection and rule adjustments are not happening independently, but are being influenced in a way that benefits the structure of this specific launch.

From there, the mechanics of what is described as a squeeze effect are laid out. The IPO is expected to have very limited float, with under 5% of shares made available to the public. This creates immediate supply constraints. Then, once index inclusion occurs, passive funds tracking the NASDAQ 100 would be mechanically required to purchase the stock regardless of valuation, since they must mirror index composition. That forced demand is described as a structural bid that is not based on price judgment but on mandate. The concern raised is that this flow of passive capital could create a sharp upward price distortion at the exact moment liquidity is most constrained.

The final stage of the argument is that this environment allows early participants to exit into index driven demand, effectively transferring value from passive long term holders into early stakeholders. The broader criticism is that modern index based investing unintentionally enables these dynamics, where large pools of retirement and passive capital become price insensitive buyers during structurally engineered entry points.

Underlying the whole thesis is a more systemic claim about market structure. That regulatory frameworks governing index composition and passive flows have not evolved at the same pace as mega cap private to public transitions, leaving gaps that can be exploited by highly influential issuers.

May 31May 31

Are you asking me?

IMHO....Elon, my fellow alum, will do what must be done to save Humanity from Itself.

I LOVE Elon.

A man such as Elon is born to Humanity only once in 10 generations.

I love Elon.

Naturally, on occasion, he errs in judgement, but only rarely.

Never bet against Elon.

Now, we are waiting the splash of SpaceX.....and a TWO-TRILLION valuation.

Personally, I think TWO TRILLION significantly undervalues Elon's contribution to the Human Race.

I am not the only one.

NOTE: If it were up to me, which it is not....I would have the US Gov match Elon's Two-Trillion, and allow this Genius to play around with FOUR TRILLION USD, instead of just Two Trillion.

Unfortunately, it seems, the US Gov, and the US People, are just, sadly, too shortsighted to make this good move.

I TRUST IN MUSK

I do not trust in God.

Edited May 31May 31 by GammaGlobulin

May 31May 31

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5 minutes ago, GammaGlobulin said:
Are you asking me?
IMHO....Elon, my fellow alum, will do what must be done to save Humanity from Itself.
I LOVE Elon.
A man such as Elon is born to Humanity only once in 10 generations.
I love Elon.
Naturally, on occasion, he errs in judgement, but only rarely.
Never bet against Elon.
Now, we are waiting the splash of SpaceX.....and a TWO-TRILLION valuation.
Personally, I think TWO TRILLION significantly undervalues Elon's contribution to the Human Race.
I am not the only one.

You were equally as insensible about Trump until you finally had a moment of Kool Aid detoxification and realized the grave mistake you had made. Now you’re doing the exact same thing with Musk. Ignoring facts, science, data, economics, and blindly following him into the meat grinder just the same. I assume that at some point you’ll stop ignoring reality and suffer an equally life altering epiphany when you realize Musk is the biggest drug addicted, pathological narcissist scammer of our time. In fact, all you need to do is watch the video above and stop ignoring facts.

May 31May 31

1 minute ago, BilllyGOAT said:
You were equally as insensible about Trump until you finally had a moment of Kool Aid detoxification and realized the grave mistake you had made. Now you’re doing the exact same thing with Musk.

NO!!!!!

a. I still believe that Trump was on the correct trajectory...until....he became suddenly bamboozled due to the wiles of The BB.

b. I have NEVER lost faith in Elon.

c. I will put my faith in Elon, rather than some nonexistent supreme being, called GOD.

d. Elon, of course, is not a god. But, he is the closest thing to a benevolent god that we have, these days.

I am NOT joking, Sir.

==============

In Point of Fact: Elon Musk just might be the very LAST HOPE that we have to protect this precious thing we call.....

Intelligence in the Universe

We now know that intelligence, similar to that of us humans, might have happened only ONCE, due to an astronomically rare set of consecutive evolutionary events which was dependent upon such things as the exact distance of the Earth from the Sun, and much more.

Elon appreciates this rarity.

He wants to protect this form of intelligence.....

We must never bet against Elon, or .....

The universe will become a very lonely infinity of space, with no entity to appreciate this loneliness.

So sad, really....if our world were to just go BOOM.....

And then, what would be left?

Stardust?

Edited May 31May 31 by GammaGlobulin

May 31May 31

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Goomba, I appreciate your enthusiasm for someone, or some kind of supernatural messiah, that you wish actually existed to help save the planet. It’s hard not to share that dream for earth, or any other planet inhabited by semi intelligent life. But the fact that you still can’t grasp how evil, damaging, and destructive people like Trump or Musk really are is probably because you’re simply too buried in a purple haze of 60's stardust to grasp the true state of affairs.

Critical thinking, good judgment, and rational decision making are not things that can easily be taught. Even a decent IQ is often not enough to nurture them. And they rarely develop out of nowhere over time. In my experience, you either already have them when you exit the placenta or you don’t.

As the oracle once said: I'm sorry, kiddo. I really am. You have a good soul. And I hate giving good people bad news. Don't worry about it. Here. Take a cookie. I promise, by the time you're done eating it, you'll feel right as rain.