The City is buzzing with a mixture of awe and dread. Elon Musk, the man who turned electric cars into a cult and rockets into a circus, is now preparing to take SpaceX public. For British investors, this is the ultimate gamble: a company that has never turned a profit, burns cash like a Saturn V, and is valued at an eye-watering $180 billion in private markets. But let’s not mince words: this is a bet on the future of humanity, or at least on Musk’s ability to sell tickets to Mars.
Market efficiency, my foot. The IPO market has been a mess since the pandemic, with companies like Deliveroo listing only to flop. Yet SpaceX is different. It has a monopoly on the launch market, a back catalogue of NASA contracts, and a cult leader who tweets stock-moving memes. The question is whether the London Stock Exchange can lure such a beast. The FCA is already mumbling about loosening listing rules, but will that be enough? Capital flight has been a recurring theme, with UK pension funds shunning domestic equities. SpaceX could reverse that trend, but only if the price is right.
Inflation be damned, the Bank of England is watching. If SpaceX lists at a valuation that makes Tesla look cheap, it could suck liquidity out of the market, boosting gilt yields and depressing sterling. But if it stumbles, the fallout will be felt from Mayfair to Margate. Musk’s biggest gamble? Perhaps. But for British investors, it might be the only game in town.
