As interest in Elon Musk‘s space venture, SpaceX, reaches a fever pitch, it is crucial for investors to navigate through the hype and stay vigilant.
The aerospace firm is privately held, and its shares are not traded publicly. The company’s shareholders consist of financiers, company executives, and employees, with speculation that Tesla CEO Elon Musk holds a majority stake of around 40-50%.
Potential for Private Share Sales
While the general public cannot directly invest in SpaceX, certain individuals are authorized to facilitate private share sales through the company’s internal trading program. Additionally, some platforms cater to accredited investors seeking to purchase shares from these authorized sellers, with Rainmaker Securities being one of them, having traded over $4 billion in SpaceX shares. However, such opportunities are limited to accredited investors with trading licenses or substantial financial means.
These avenues remain inaccessible for most investors, effectively rendering SpaceX shares unavailable for private acquisition.
Rumors of Spin-Off and Scam Alert
Amid mounting speculation about a potential initial public offering (IPO), fueled in part by reports of talks regarding SpaceX’s satellite subsidiary, Starlink, there is a need for caution.
Despite these rumors, Musk dismissed the notion of an IPO at the present time, emphasizing that such a move would only materialize once Starlink attains specific financial milestones.
The recent surge of interest in all matters related to Musk and SpaceX, however, has attracted the attention of scammers looking to capitalize on the public’s eagerness to invest in the company, which has recently been valued at over $180 billion through private share transactions.
In light of this, it is critical to remain wary. During the wild phase of the cryptocurrency boom, numerous scams emerged, and historical parallels suggest a similar trend, with more than 80% of initial coin offerings being identified as scams at the height of the 2018 cryptocurrency frenzy.
According to Jordan Liles at Snopes, an uptick in SpaceX-related scams has already been observed, with one instance being a Facebook group purportedly offering a chance to invest in SpaceX, which subsequently vanished from the platform, leaving only posts about investment opportunities in other Musk-affiliated ventures.
As the clamor for a Starlink IPO persists, some analysts believe that the subsidiary has met the financial criteria set by Musk, positioning it for a potential public offering in the future.
In the meantime, alternative avenues exist for investors to partake in the burgeoning U.S. corporate space race, as previously outlined in an article by Benzinga.
