Will Elon Musk’s SpaceX open shares to public? British investors are watching closely as reports emerge that the private space company may finally allow ordinary people to buy a stake. For years, SpaceX has been the holy grail of venture capital firms and high-net-worth individuals, but a possible initial public offering would bring it to the High Street.
However, experts warn that the typical British investor should proceed with caution. The company’s valuation has soared past $200bn, but its revenue streams remain tied to government contracts and Mr Musk’s ambitious timelines. Labour MP and member of the Treasury Select Committee, Lucy Powell, said: “The Government must ensure that any retail offer is accompanied by clear risk warnings.
We cannot have a repeat of the Woodford scandal where pensioners lost their life savings chasing the next big thing.” The Financial Conduct Authority is under pressure to tighten rules on so-called “unicorn” IPOs. Meanwhile, workers in the North West, where space industry supply chains are growing around Manchester, are more circumspect.
“I’d rather see investment in apprenticeships than billionaire space tourism,” said Denise Crabtree, a union rep at a BAE Systems plant in Lancashire. Still, the allure of owning a piece of the company that launched the Falcon Heavy and aims to colonise Mars is undeniable. Investment platforms like Hargreaves Lansdown and AJ Bell have reported a surge in inquiries.
But as the cost of living crisis continues, many are asking whether betting on the stars is sensible when the price of bread is still rising.
