The City of London has issued new guidelines governing the purchase of shares in SpaceX, the private aerospace manufacturer founded by Elon Musk. The move clarifies which investors are eligible to trade in the company’s stock, amid growing demand from institutional and retail buyers for exposure to the booming space sector.
Under the Financial Conduct Authority’s updated rules, only professional investors and high-net-worth individuals meeting specific criteria will be permitted to acquire SpaceX shares. The regulations classify SpaceX as an unlisted, high-risk asset, limiting access to those with significant investment experience or assets exceeding £1 million in net wealth. Retail investors are effectively barred, unless they receive tailored advice from authorised intermediaries.
The decision reflects London’s attempt to balance innovation with consumer protection. SpaceX, which has a valuation exceeding $180 billion, has not conducted a traditional initial public offering. Its shares trade sporadically on secondary markets or through employee liquidity programmes. The FCA’s framework seeks to prevent speculative bubbles and shield inexperienced investors from potential losses in a sector characterised by high capital expenditure and uncertain returns.
Legal experts note that the UK’s approach diverges from the United States, where SpaceX shares are more readily available to accredited investors under Securities and Exchange Commission rules. The City’s stance aligns with its post-Brexit ambition to establish a reputation for rigorous oversight, rather than following looser American standards. Critics argue the restrictions may disadvantage UK-based investors seeking to participate in the space race, potentially driving capital towards offshore jurisdictions.
SpaceX itself has not commented on the regulations. The company’s Starlink satellite internet division and Starship rocket programme have attracted intense investor interest, but its closely held status limits transparency. The FCA’s move underscores a broader trend: governments grappling with how to regulate frontier technologies while maintaining market integrity.
For now, the City’s message is clear. Access to SpaceX shares is a privilege for the professional few, not a right for the many. The long-term implications for London’s status as a global financial centre remain to be seen.
