SpaceX, the private rocket company led by Elon Musk, is finally preparing for a stock market debut that has UK investors circling like vultures over a carcass. But before you dive in, there are three things to know. First, valuation: whispers suggest a figure north of $150 billion, making it a heavyweight before it even starts trading.
That is a lot of faith to place in a company that has yet to turn a consistent profit. Second, market volatility: expect the shares to swing more than a pendulum in a hurricane. This is not a gilt-edged security; it is a high-risk bet on Mars colonies and satellite internet.
Third, capital flight: UK investors will need to navigate currency risk and tax implications. The Treasury will be licking its lips at the stamp duty, but could this be a one-way ticket to losses if the dollar weakens? Skeptics will recall the dot-com bubble.
Advocates will whisper of disruption. The bottom line: invest only what you can afford to see blasted into orbit.
