A surge of interest in investing in Elon Musk‘s aerospace firm, SpaceX, has created a storm of confusion. The company is privately held and its shares are not publicly traded. Existing shareholders include financiers, company executives, and staff. Notably, it is believed that Tesla CEO Elon Musk owns a majority stake — somewhere between 40-50%.
Although SpaceX shares are not available to the general public, there are avenues through which certain individuals, such as company executives and board members, can sell shares through SpaceX’s internal trading program. Additionally, platforms like Rainmaker Securities, as reported by Barron’s, facilitate the trading of SpaceX shares, but they are limited to accredited investors.
However, such opportunities are available to a very select few. Consequently, it is safe to assert that SpaceX shares are generally not accessible to private investors.
Dispelling Spin-Off Rumors
Rumors abound regarding a potential initial public offering (IPO) following reports of discussions to spin off SpaceX’s satellite subsidiary, Starlink. Musk swiftly denied these rumors and emphasized that any IPO would only occur after Starlink had achieved specific financial milestones.
Investors should exercise prudence as the recent fervor surrounding SpaceX and Musk-related ventures has attracted scammers seeking to exploit eager investors. According to Jordan Liles at Snopes, the upsurge in SpaceX scams is akin to the proliferation of cryptocurrency scams during the 2018 rally, during which over 80% of initial coin offerings were found to be scams.
Online scammers often entice victims with promises of investment opportunities, only to abscond with their money. A case in point can be seen in a now-unavailable Facebook group offering investment in SpaceX, indicative of the emerging trend of scams targeting those eager to invest in the recently valued $180 billion company.
In due course, a Starlink IPO may materialize. Analysts suggest that it may have already met the financial criteria identified by Musk as necessary for an IPO. Meanwhile, alternative investment avenues are available for those seeking to be part of the burgeoning U.S. corporate space race.