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There's a Ticking Time Bomb Hidden Inside SpaceX's IPO Prospectus. Is It Still Worth the Risk?

The Motley Fool·
There's a Ticking Time Bomb Hidden Inside SpaceX's IPO Prospectus. Is It Still Worth the Risk?

SpaceX's IPO prospectus reveals significant shareholder dilution risks. The company's $135 IPO price is backed by only $7.85 in tangible book value per share (94.2% dilution). Additionally, SpaceX faces imminent share issuance obligations: a $19.8 billion EchoStar spectrum deal requiring 261.8 million new shares by November 2027, and a potential $60 billion Cursor AI acquisition requiring 444.4 million shares. Combined with other stock options and authorized shares, these could dilute existing shareholders by roughly 12.6% within 18 months of trading.

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