The frenzy surrounding Elon Musk‘s aerospace giant, SpaceX, has ignited a wildfire of investor enthusiasm. Yet amidst this fervor, discerning the truth from the falsehoods can feel like searching for a needle in a haystack.
SpaceX remains privately held, its shares inaccessible through any public exchange. Possessing a constellation of shareholders that includes investors, corporate executives, and employees, it is widely believed that Tesla CEO Elon Musk commands a majority stake, likely ranging between 40-50%.
Exploring Private Share Sales
For those with the right connections, private sales of shares are theoretically possible through SpaceX’s internal trading program. Additionally, there exist select platforms offering shares from willing existing shareholders to private investors.
Rainmaker Securities is a prominent player in this canvas. According to Barron’s, the company has facilitated over $4 billion in transactions for SpaceX shares. However, their services are exclusively available to accredited investors, a group defined by either holding a trading license or boasting substantial wealth.
Yet these scenarios are a reality for only a select few, rendering SpaceX shares largely elusive to the average private investor.
Rumors of Spin-Off
Speculation regarding an initial public offering (IPO) surged following rumors in mid-November that Musk was contemplating spinning off SpaceX’s satellite subsidiary, Starlink.
Musk swiftly debunked these rumors, reinforcing that any IPO would materialize solely upon Starlink achieving specific financial milestones.
This is a crucial juncture to exercise caution. During the crypto boom’s apex in 2018, an overwhelming 80% of initial coin offerings were confirmed as scams, as per research by Satis Group.
The escalating fervor linked to all things Musk or SpaceX is now attracting scammers, preying on those fervently yearning for a slice of a company recently valued, through private share sales, in excess of $180 billion.
“A common tactic among online scammers involves enticing victims into a group chat, luring them with a seemingly enticing investment opportunity. However, it is inevitably a ruse to pilfer users’ assets,” asserts Jordan Liles of Snopes, a fact-checking website that has already encountered a surge in SpaceX-related scams.
An example of a Facebook group peddling shares in SpaceX was recently brought to light by Benzinga. While we are unable to independently verify the authenticity of the offering, the content has since vanished from the platform. Notably, the group’s page still hosts discussions on how one can invest in OpenAI — another Elon Musk-backed venture — and Neuralink.
Patience is key. A Starlink IPO is expected in due time. Several analysts contend that it has likely met the financial benchmarks Musk stipulated as prerequisites for Starlink to become IPO-ready.
Meanwhile, an article published earlier this week by Benzinga detailed alternative avenues for investors to engage in the burgeoning U.S. corporate space race.