SpaceX crashes to a low point: now politicians are investing in it

Elon Musk’s SpaceX stock has had a difficult month. After it entered the market in June, in the “largest offering in history,” at a price of $150, it fell repeatedly to an all-time low, far below the offering price. But exactly when many investors fled, a certain group did the exact opposite: six American members of Congress entered the stock.

According to official reports they are required to file, the first was Republican congresswoman Lisa McClain, whose husband bought a stake in xAI even before it merged into SpaceX — giving her family early exposure.

Then another five lawmakers joined, including John James from Michigan, whose wife bought shares on the very day of the offering, along with a number of additional Republicans. Even one Democrat, Gilbert Cisneros from California, entered the deal. In total, this involves cumulative investment of up to $480,000.

Up to this point, it sounds like a legitimate investment decision. What makes the story interesting is the overlap between personal interests and official positions. Some of these lawmakers sit on committees that directly relate to SpaceX’s business: the House Armed Services Committee, which oversees the company’s defense contracts, and committees that relate to the regulation of Starlink, its satellite internet service.

In other words, the people who shape the company’s regulatory environment are buying its stock.

This is not a new phenomenon in the United States. Again and again, suspicions of insider trading among politicians surface. The most famous example is Nancy Pelosi, whose family portfolio showed, over the years, dreamy returns that beat the leading indexes, while she held senior positions that touched upon the regulation of technology giants such as Google.

The performance was so striking that an entire field of funds and services emerged that simply copy the trading moves of members of Congress.

And here comes the big question: is the entry of politicians into the stock that crashed a hint of a turnaround? Maybe someone knows that a major government contract is on the way, or that regulation will tilt in favor of the company. It is important to say carefully — there is no proof of this.

Most lawmakers claimed that their portfolios are managed by outside advisors, and the investments themselves, incidentally, are currently at a loss. It may simply be a bet on a leading company that looks “cheap” after the drop.

And what does that mean for your wallet? The temptation to copy the moves of “those who know” is understandable, but also dangerous: these are deals by people with a completely different time horizon, liquidity, and risk profile than yours, and they are already at a loss.

For the Israeli saver who was exposed to SpaceX indirectly through index-tracking funds, the lesson is more interesting than the stock itself: it illustrates how difficult it is to price a company with a huge vision, and how much caution is required before running after “smart” money — even when it comes straight from government.