SpaceX is set to go public on June 12, with shares priced at $135 per share, valuing the company at $1.75 trillion. The IPO is expected to attract huge attention from investors, but experts warn that the impact on 401(k) and IRA savings may be minimal.
The company is still making heavy losses, including $4.9 billion in 2025 and $4.3 billion in the first three months of 2026. Despite this, SpaceX is likely to be listed on major indexes like the Nasdaq-100 and Russell 1000, which could force index funds to buy its shares.
However, experts say the real impact depends on 'free float,' which is the number of shares available for public trading. According to USA Today, early estimates show SpaceX may have only a 0.11% weight in the Russell 1000 index, which is very small for most portfolios.
Advisers warn that newly listed companies can be volatile, especially when index funds are forced to buy shares quickly. Some analysts predict the stock may rise during early demand but could fall later when early investors and insiders are allowed to sell their shares.
Experts recommend diversification and caution against taking on too much risk. They also note that large fund managers may offer better pricing for retirement investors, who may choose to 'go along for the ride' despite risks.
