Danish pension funds blacklist SpaceX: governance concerns, valuation severely inflated

Deep Tide TechFlow News, May 29 — Danish pension fund AkademikerPension has decided to add SpaceX to its “exclusion list,” citing concerns about the company’s governance. This comes at a time when SpaceX is preparing for an IPO and is seeking to achieve a valuation of at least $1.8 trillion. According to sources, the company plans to raise up to $75 billion; if successful, it would become the largest IPO in history.

AkademikerPension manages about $25 billion in assets. Previously, it had also excluded Tesla (TSLA.O) and U.S. Treasury bonds on sustainability grounds. The fund said its “primary reason” for avoiding SpaceX is related to ESG (environmental, social, and governance) factors—“especially because the company’s governance affairs have been extremely poor.” The pension fund added: “That said, if, after assessing, we believe SpaceX represents a highly attractive investment opportunity, then from the perspective of investment returns, we cannot provide justification for this decision.” “However, as long-term investors, our view is that the company’s valuation has also become seriously inflated.” (Jin10)