Investors Seek Escape from Musk’s Influence

Elon Musk is everywhere, and it’s not just because of his success. He’s become a prominent figure on Twitter; blocking him is nearly impossible. When SpaceX went public, everyone had an opinion on it, whether they were interested in buying stock or not. Recent changes in regulations allow mega-cap companies like SpaceX to enter the public market, prompting many to invest in major indexes, meaning funds are now tied to Musk’s ventures.

Interestingly, at least one investment firm is catering to those who wish to steer clear of Musk-related stocks. A New York firm is launching two funds labeled “Ex-Elon,” designed for investors wanting to diversify without the influence of Musk’s enterprises, as reported by Business Insider.

These funds will track the Nasdaq 100 and the S&P 500 while excluding any companies founded or led by Musk, such as Tesla and SpaceX. That said, the future may bring some uncertainty; rumors suggest a potential merger between SpaceX and Tesla, which could complicate this new fund’s focus. Plus, if OpenAI, Neuralink, or the Boring Company were to go public, it’s likely they’d fall under the same umbrella of exclusion.

While Musk’s companies may be few, their impact on investors is significant. On its first day in the NASDAQ 100, SpaceX experienced a nearly 7% drop in stock price. Some investors hoped that the index’s uptick would provide a boost, as mutual funds with about $800 billion in assets are expected to buy SpaceX shares to follow the index, potentially driving the price up.

This scenario has raised skepticism among some. It appears the intent might be to increase the public’s exposure to SpaceX through passively managed funds, leaving early investors at a disadvantage. For those who invested in ventures like X or xAI before SpaceX’s IPO, waiting for returns could be frustrating.

Ultimately, whether you’re trying to avoid Musk because you feel it’s unwise or due to personal convictions, now there are options available.