SpaceX IPO spawns 4,400 millionaires as stock slides and anti-Musk ETFs launch
SpaceX's record IPO has created thousands of employee millionaires, but shares have slid from their post-debut peak and bond markets are signaling caution, while two new ETFs now let investors explicitly exclude Elon Musk's companies.
Employee windfall
Elon Musk said on The Sean Hannity Show that SpaceX's June IPO has probably made "several thousand" employees millionaires, with pre-IPO estimates pointing to roughly 4,400 new millionaires and more than 400 centimillionaires. The wealth stems from years of stock grants and options awarded to welders, machinists, and engineers alike. Musk framed the policy as a way to align incentives.
It's not just one welder, it's several thousand people who were working on the production line.
However, much of that wealth remains on paper due to staggered lockup periods that restrict selling.
Stock and bond pressure
After pricing at $135 and briefly rising above $200, SpaceX shares fell below $148 by midweek, erasing a chunk of the paper gains. The company's $25 billion of debt due 2036, sold at a 1.4 percentage point spread to Treasurys in June, saw spreads widen for a fourth straight day on Thursday, according to MarketAxess. The simultaneous stock slide and bond stress show a split in how investors view the company.
- SpaceX IPO priced at $135 per share
- Shares rise above $200
- Shares fall below $148
- Bond spreads widen for fourth straight day
- Anti-Musk ETFs registered with SEC
Anti-Musk ETFs arrive
Subversive Capital registered two exchange-traded funds, Nasdaq-100 Ex-Elon Enterprises ETF and S&P 500 Ex-Elon Enterprises ETF, that explicitly exclude Tesla and SpaceX. The funds, filed under the Subversive Markets Lab brand, aim to track large-cap indexes while removing companies "founded, controlled, or led by Elon Musk." The move taps into negative sentiment around Musk's political activities and public persona, offering a way for investors to avoid exposure to the world's richest person.
Valuation debate
The IPO valued SpaceX at roughly $2 trillion, comparable to Amazon and more than JPMorgan and ExxonMobil combined, yet the company lost $4.94 billion in 2025 with only Starlink reliably profitable. Financial journalist Bethany McLean noted the contrast between equity investors drawn to Musk's Mars vision and debt investors focused on actual earnings.
The stock market tends to like big dreams, bold narratives and the men (they are mostly men) who can sell them.
With just under 5% of shares floated and passive index funds forced to buy, supply constraints have helped prop up the stock price, but the bond market's skepticism persists.
