SpaceX investors say SPV sold shares before IPO windfall

The Story in Brief

Investors who bought exposure to SpaceX through a fund run by Late Stage Management say the firm sold the shares before the rocket company began public trading. Ram Rupireddy told The Wall Street Journal that he paid $17,250 in 2020 and was later told his exposure had been sold in 2024, when it was worth about $45,450. Yet his portal and tax document appeared to show he still held the equivalent of 2,500 shares, worth more than $300,000 at the reported IPO price.

Rupireddy has complained to the Securities and Exchange Commission. He believes more than 100 investors face a similar problem. Late Stage did not respond to repeated requests for comment, while the SEC and FBI declined to discuss any possible investigation. A first group of pre-IPO investors is due to become eligible to sell shares on Thursday.