Danish pension fund blacklists SpaceX: governance concerns and severely overvalued

Odaily Planet Daily News Danish pension fund AkademikerPension has decided to add SpaceX to its "exclusion list," citing concerns over the company's governance. This comes as SpaceX prepares for an IPO and seeks a valuation of at least $1.8 trillion. According to sources familiar with the matter, the company plans to raise up to $75 billion, which, if successful, would be the largest IPO in history. AkademikerPension, which manages approximately $25 billion in assets, has previously excluded Tesla (TSLA.O) and U.S. Treasuries from its portfolio for sustainability reasons.

The fund stated that its "primary reason" for avoiding SpaceX is related to ESG (Environmental, Social, and Governance) factors, "particularly the company's extremely poor performance in governance matters." The pension fund added, "That said, if we assess that SpaceX represents a highly attractive investment opportunity, we would not be able to justify this decision from an investment return perspective." "However, as long-term investors, our view is that the company's valuation is also severely overvalued." (Golden Ten)