Danish pension fund Akademikerpension has decided to exclude SpaceX from its investment portfolio. This decision stems from concerns regarding the company's governance structure and its perceived overvaluation.
Akademikerpension highlighted that SpaceX's market valuation is estimated to exceed $1.8 trillion, which they find difficult to justify. The fund expressed concerns that investors are being asked to accept a low risk premium for a company with significant uncertainties.
Additionally, the pension fund criticized SpaceX's governance, describing it as "extremely deficient." They noted that Elon Musk holds over 80% of the voting rights while also serving as CEO, CTO, and chair of the board. This concentration of power, according to Akademikerpension, undermines the board's ability to provide effective oversight and complicates any potential removal of Musk from his positions.
As SpaceX prepares for its initial public offering, this exclusion marks a significant stance from a major investor, reflecting growing scrutiny over corporate governance practices in high-profile companies.
