Denmark REJECTS SpaceX IPO – Musk Lost $5B, Wants $1.8T, EU Says NO

COPENHAGEN — A major Danish pension fund has placed SpaceX on its investment blacklist, delivering a sharp rebuke to Elon Musk’s plans for what could be the largest initial public offering in history.

Academic Appension, which manages roughly $25 billion for Danish academics, cited concerns over valuation, governance and risk as reasons for barring any investment in the rocket company.

Ambitious Valuation

SpaceX is seeking a valuation as high as $1.8 trillion, despite posting a $4.94 billion loss last year. The company has never turned a profit as a combined entity, though its Starlink satellite internet business remains profitable.

The planned IPO would represent one of the most significant debuts in financial markets, but European institutional investors are increasingly wary.

Governance Concerns

The fund’s chief investment officer highlighted what she called a “catastrophic governance structure.” Mr. Musk controls approximately 85 percent of voting power through a dual-class share arrangement. He serves simultaneously as chief executive, chief technology officer and chairman, and cannot be removed without his consent.

SpaceX has also taken steps to limit shareholder rights, including mandatory arbitration for disputes and incorporation in Texas, which raises the threshold for legal actions.

European Pullback

The decision fits a broader pattern of European institutions reducing exposure to certain American assets. In recent months, Academic Appension exited U.S. Treasuries, sold its Tesla holdings and now blacklisted SpaceX.

Other European funds have expressed similar caution, citing governance risks, political uncertainty and concerns over concentrated power in critical technology sectors.

American Pension Funds Raise Flags

Even U.S. institutional investors have voiced reservations. Leaders of major New York public pension funds, managing over $1 trillion combined, described SpaceX’s governance as “extreme” and among the most management-friendly structures ever proposed for a company of this scale.

Financial Reality

SpaceX generated $18.7 billion in revenue last year, but the merger of Mr. Musk’s xAI and X platforms imported substantial losses. The first quarter of 2026 alone saw a $4.28 billion deficit.

While Starlink provides a profitable core, other ventures continue to burn cash at a rapid pace.

Regulatory and Market Hurdles

European regulators have grown more cautious about high-profile American technology listings. Questions around data sovereignty, national security and market stability have complicated SpaceX’s path to a public debut on European exchanges.

The Danish move is not an outright ban on SpaceX operating in Europe but signals deep skepticism about investing at the proposed valuation.

Musk’s Response

Mr. Musk has pushed back strongly against European regulatory scrutiny, often framing it as protectionism that stifles innovation. He has argued that SpaceX’s technology, including reusable rockets and global internet access, benefits humanity broadly.

Strategic Implications

SpaceX plays a vital role in Western space capabilities, launching satellites for governments and commercial clients. However, its heavy reliance on U.S. government contracts and Mr. Musk’s personal influence have raised concerns among some international investors.

Investor Sentiment

Many private investors remain enthusiastic about SpaceX’s long-term potential in space transportation and satellite services. But institutional funds with fiduciary responsibilities are increasingly demanding stronger governance protections.

Broader Decoupling Trends

The episode reflects growing European efforts to assert technological sovereignty. Across defense, cloud computing, payments and now space infrastructure, European institutions are carefully weighing exposure to American companies with complex ownership structures.

Future Outlook

SpaceX is expected to proceed with an IPO, likely targeting U.S. exchanges where retail and certain institutional demand remains strong. However, limited European participation could affect overall valuation and liquidity.

Valuation Debate

At a $1.8 trillion valuation, SpaceX would trade at roughly 96 times its 2025 revenue for a company still losing money. Critics argue this reflects narrative-driven pricing rather than fundamental economics.

Risk Premium Concerns

European funds have signaled that the risk premium demanded by investors is too low given the company’s governance model and financial performance.

Conclusion

Denmark’s rejection of SpaceX at the proposed terms underscores a widening gap between Mr. Musk’s ambitions and the caution of major European institutional investors. As SpaceX prepares for its public debut, questions about governance, valuation and strategic autonomy will likely follow the company onto the global stage.

The episode highlights how Europe is becoming more selective about which parts of American innovation it is willing to embrace without stronger safeguards.