Elon Musk's SpaceX is set to go public next month, with its initial public offering (IPO) expected on June 12. The move could have implications for retirement accounts, including those in the UK, as index funds may automatically include the company.
SpaceX, currently valued at $1.25 trillion, plans to list on the Nasdaq under the ticker SPCX. The IPO is projected to be the largest in history at $1.75 trillion. However, the company reported losses of $4.9 billion in 2025 and $4.3 billion in the first quarter of 2026, raising concerns about its profitability.
Index funds, commonly used in retirement accounts, spread investments across a market. If SpaceX joins the Nasdaq quickly due to recent rule changes, millions of investors could gain exposure to the company. Critics warn that its volatile stock price and lack of profits could lead to losses for retirement savers.
Corey McLaughlin, editor of the Stansberry Digest, noted that even those not buying SpaceX shares directly may end up owning them through index funds. Randi Weingarten, president of the American Federation of Teachers, expressed concern about the company's “unsustainable valuation” and its impact on pensions.
However, some experts downplay the risk. Scott Richie of Stoculator said the development is “neither a big positive nor a big danger” for most retirement account holders, as a small slice of any single company won't make or break a retirement fund.
