SpaceX’s IPO is believed to be set at wildly inflated prices. The company just isn’t that profitable, it lacks significant opportunities for growth, worse its facing significant competition in the near future. Trying to short it when index funds are forced to buy vast quantities of stock is a losing proposition, but those indexes are definitely getting hosed over the next decade.

At least that’s the general consensus, nobody would be worried about index funds buying stock if it looked like a good long term investment. Really the expectation that the stock price would tank is why there’s been a push to change the rules.