Trump Bought Up to $50,000 in SpaceX Stock After Record IPO
Donald Trump bought up to $50,000 in SpaceX shares on June 23, two weeks after its IPO, before the stock fell back to the $135 offer price by Monday's close.
Summary
President Donald Trump bought up to $50,000 of SpaceX shares on June 23, two weeks after Elon Musk’s company completed a record-setting IPO at $135. His purchase price is unknown. Shares had fallen from above $200 to the mid-$150s by June 23, then closed Monday, August 24, at $135, potentially leaving Trump’s stake underwater.
SpaceX is securing more government contracts and benefiting from the Trump administration’s deregulatory stance. Trump and Musk remain close despite a brief rupture last summer, when Musk accused Trump of withholding Department of Justice files on Jeffrey Epstein because Trump’s name appeared frequently. White House spokesman Davis Ingle said third-party financial institutions manage Trump’s portfolio to replicate recognized indexes such as the Schwab 1000. SpaceX lobbied popular indexes before its IPO to permit faster inclusion, meaning many investors may own its shares without realizing it.
Positives
- SpaceX completed a record-setting IPO at $135, with shares subsequently climbing above $200.
- SpaceX is securing an increasing volume of government contracts and benefiting from the Trump administration’s deregulatory stance.
- Third-party financial institutions manage Trump’s portfolio to replicate recognized indexes such as the Schwab 1000, the White House said.
- SpaceX sought faster inclusion in popular indexes before its IPO, potentially broadening passive ownership.
Risks & concerns
- Trump’s purchase price remains unknown, preventing confirmation of whether his SpaceX stake has lost value.
- SpaceX closed Monday at $135, below its mid-$150s June 23 level and far beneath its high above $200.
- Trump owns SpaceX shares while the company receives more government contracts and benefits from his administration’s deregulation.
- Index inclusion may leave many investors owning SpaceX shares without realizing it.
- Musk previously accused Trump of withholding Department of Justice files on Jeffrey Epstein because Trump’s name appeared frequently.