Elon Musk’s IPO of his company SpaceX is leaving shareholders confused. Entrepreneur Tejpaul Bhatia is confident he owns a slice of Elon Musk’s SpaceX, but he can’t be 100% sure.
“I hope I didn’t get duped,” said Bhatia, the former chief executive of space company Axiom Space. “I don’t think I did, but again, there’s no way to know.”
As per Reuters, Bhatia couldn’t buy shares directly, so he turned to the secondary market where a loose network of brokers buy and sell the shares of privately owned companies.
READ: SpaceX to pursue ‘one of the largest’ IPOs in 2026 (December 10, 2025)
“You are relying on the counterparties in these transactions and their reputations,” said Mitchell Littman, a New York-based attorney who advises SPV managers and secondary market investors. He added, “Every time there is hype around these type of things, inevitably the fraudsters come out of the woodwork because they smell an opportunity.”
“It’s getting a little loosey-goosey,” said Namek Zu’bi, who manages a fund with more than $500 million in assets. As per Reuters, he said he turned down requests from his own investors to buy into SpaceX deals because of fraud concerns.
“A lot of people are going to make a lot of money,” Zu’bi said. “But you’re also going to get a lot of people who are surprised or shocked” that they don’t own any shares.
READ: Is Elon Musk trying to influence SpaceX’s valuation ahead of IPO (February 3, 2026)
For Musk, the episode underscores both the strength and the risks tied to his brand. His companies continue to draw intense investor interest, allowing firms like SpaceX to command high valuations without going public. But that demand has also fueled activity in opaque, unofficial channels, raising the potential for confusion and reputational risks, even when the company is not directly involved.
For shareholders and prospective investors, the situation highlights the challenges of accessing private markets. Limited disclosure and the absence of centralized oversight can make ownership claims unclear, particularly when intermediaries are involved.
As per Reuters, as SpaceX’s valuation climbs, some investors fear that many could be holding little more than paperwork when it goes public.