Elon Musk just did it. The world’s first trillionaire is a South African-born, American-naturalised eccentric who has turned space travel into a cash machine. His company SpaceX’s long-rumoured listing finally hit the London Stock Exchange this morning – and the British establishment is quietly counting its winnings.
Whitehall sources confirm that a coterie of UK-based venture capital funds and sovereign wealth vehicles were given preferential access to the allocation. The City is buzzing with the news that the UK’s largest pension funds, including the Universities Superannuation Scheme and the Local Government Pension Scheme, doubled their money within hours of the opening bell. Not bad for a morning’s work.
Critics will mutter about Musk’s tax arrangements – he shifted his personal residence to a no-domicile structure in Switzerland last year. But that’s a story for another day. Today, the Treasury is quietly thrilled. The listing, which took place in London rather than New York or Hong Kong, is seen as a victory for Rishi Sunak’s post-Brexit efforts to attract tech capital.
What’s the backstory? The deal was brokered in secret over six months. Key players include the Chancellor’s special adviser on financial services, who used to work at a hedge fund that holds a large stake in SpaceX’s debt. That’s not a conflict of interest: it’s how things are done in this town. The real story is the sheer scale of the wealth transfer. Musk’s personal stake is now valued at £1.2 trillion, but the British institutional slice is worth around £45 billion. That’s a lot of school repairs and hospital scanners.
But let’s not get carried away. The optics are terrible. A man who pays minimal UK tax just became the richest person in history, while his rocket company benefits from lucrative government contracts to launch British military satellites. The Defence Secretary is said to be fuming about the lack of transparency around the pricing. Backbenchers are sharpening their knives. Expect urgent questions in the Commons next week.
There’s also a political dimension. Musk’s recent tweets attacking the Prime Minister for “weak leadership on net zero” have not been forgotten. Number 10 is walking a tightrope. They want the investment – and the jobs that come with it – but they don’t want to be seen as Musk’s poodle. Labour is already running attack ads: “One rule for the billionaires, another for the rest of us.”
Inside the Lobby, the word is that Musk will not attend the traditional post-listing drinks reception at the Guildhall. Too busy tweeting. But his bankers will be there, sipping champagne and counting their fees. The deal is done. The money is made. And the game goes on.
