'Abhorrent': Americans fear Musk's SpaceX gaining influence over retirement savings

WASHINGTON, DC: More than 150 people responded to a Guardian request for views on SpaceX's recent stock market debut, with many expressing unease that their pensions and 401(k) accounts could become more connected to the company and other AI-focused firms. Many said the issue is not direct investment but the possibility of being exposed through index funds that underpin retirement plans.

“We’ve all been forced into a giant casino,” one California engineer said as Americans voiced growing concern that Elon Musk's SpaceX could become increasingly tied to their retirement savings.

SpaceX IPO sparks retirement concerns

Musk became the world's first trillionaire last week after SpaceX debuted on the stock market with a valuation of $1.77 trillion.

The concern for many respondents stems from the structure of retirement investing. Since many 401(k) plans are tied to index funds tracking major market benchmarks, Americans who never buy SpaceX shares directly could still end up owning them indirectly if the company becomes part of those indexes.

The Guardian reported that Musk pushed for a rule change allowing SpaceX shares into index funds earlier than is typical, potentially increasing the company's presence in retirement portfolios.

For Tim, a 62-year-old engineer from Alameda, California, that prospect feels unavoidable.

“I’ve never wanted to participate in the so-called AI bubble,” he said. “Basically my entire retirement is in the S&P 500. Not out of choice, but if you don’t have investments in the stock market, you’re losing ground compared to everybody who does.”

Americans question growing tech influence

Several respondents said their concern extends beyond SpaceX itself and reflects broader discomfort with the growing role of major technology companies in everyday financial life.

Stephen, a 33-year-old engineer from Michigan, said he finds it “abhorrent” that his retirement savings are tied so closely to large technology firms.

“I think that the amount is absolutely ridiculous and untethered to the company’s actual value,” he said. “I think it’s abhorrent that my savings and retirement funds are tied so intricately to these tech companies.”

Matt Reynolds, a professor in eastern Washington, said he worries about both his retirement prospects and the concentration of power among tech executives.

“As someone looking to retire in the next five to 10 years, I’m alarmed at big tech’s market consolidation and its impact on my savings and investments,” he said.

SpaceX valuation fuels unease

Others framed their concerns in moral and economic terms.

Kendra Ford, a climate activist from Portsmouth, New Hampshire, argued that Musk's growing wealth highlights broader problems in the economic system.

“It is heartbreaking and enraging that Elon Musk can use the system to enrich himself while most people are not being paid fairly,” she said.

Not every respondent viewed SpaceX negatively. Dimitris Eleas, a political scientist from Brooklyn, acknowledged the company's accomplishments while expressing concern about concentrated wealth.

“I have mixed feelings about the SpaceX IPO. It is hard not to admire what the company has achieved,” he said. “At the same time, I am very uneasy about the growing concentration of wealth and power in the hands of a small number of technology companies and their greedy founders.”

Steven, an engineer from Michigan, said the issue ultimately comes down to a lack of control over financial futures.

“There is a palpable sense of unfairness and anger that our lives are inextricably tied to the choices of the few,” he said.