Elon Musk's SpaceX is set to become a publicly traded company, and experts warn that the move could have significant implications for Americans' retirement accounts. The aerospace company, founded by the world's richest person, plans to launch its initial public offering (IPO) on June 12, which is projected to be the largest in history at a staggering $1.75 trillion valuation.
SpaceX's entry onto Wall Street comes after major stock market indexes, including the Nasdaq where the company will be listed, changed their rules to expedite the inclusion of high-value companies. This change means that retirement account managers, who typically invest in index funds that track these indexes, could soon allocate portions of Americans' 401Ks and other retirement savings to SpaceX.
However, concerns have been raised about the potential risks. According to reports, SpaceX lost approximately $4.9 billion in 2025 and another $4.3 billion in the first quarter of 2026. Such losses are unusual for a company entering the public market, and its stock price could be volatile immediately after the IPO. The previous waiting periods, implemented after the dot-com crash, were designed to protect investors from such volatility and allow companies to prove profitability before being included in indexes.
Corey McLaughlin, editor of the Stansberry Digest, warned that the effects could be widespread. "If you're like us, you're not planning to buy SpaceX shares in the IPO. But odds are, you'll end up owning SpaceX anyway... if you own any index funds," he wrote. He added that even those who do not directly own index funds could be indirectly affected by the market movements driven by other investors.
Randi Weingarten, president of the American Federation of Teachers, which represents 1.8 million workers, expressed concern in a letter to the Securities and Exchange Commission. She highlighted SpaceX's "unsustainable valuation" and the potential impact on union members' pensions. "This is not just another IPO—it's the largest in U.S. history, and it's being rushed to market with a valuation that defies financial logic," she stated.
Nevertheless, some financial experts downplay the risk. Scott Richie, an investing expert at Stoculator, told Newsweek that the development is "neither a big positive nor a big danger" for most retirement account holders. "You'll own a little SpaceX the same way you already own a little of hundreds of companies you've never thought about," he said. "A small slice of any single company, up or down, won't make or break your retirement."
SpaceX stock is expected to trade on the Nasdaq under the ticker "SPCX" starting June 12. The company, founded in 2002, designs, builds, and launches rockets and spacecraft, and made history in 2020 as the first private company to transport humans to the International Space Station.
