In April, Elon Musk filed a confidential initial public offering (IPO) for SpaceX with the U.S. Securities and Exchange Commission, potentially paving the way for the aerospace and artificial intelligence company to go public as early as June. If successful, Musk would make history as the first CEO to lead two publicly traded companies with valuations exceeding $1 trillion.
SpaceX aims to raise between $50 billion and $75 billion through this IPO, which could set a record, surpassing the $25.6 billion raised by Saudi Aramco in 2019. Targeting a valuation of $2 trillion would position SpaceX as the sixth-largest publicly traded company, following tech giants like Apple and Amazon. The company’s appeal lies in its recurring revenue model from its Starlink satellite internet service, which has over 10 million global customers supported by more than 10,000 satellites. Furthermore, SpaceX has secured approximately $22 billion in federal contracts, bolstering its status as a leading government contractor.
Investors interested in accessing SpaceX before its public debut can consider the ARK Venture Fund (ARKVX), managed by Ark Invest, which provides exposure to companies like SpaceX. However, the fund is a closed-end interval fund that presents liquidity challenges, as shareholders can only sell their shares during designated repurchase windows, occurring quarterly. The fund’s higher-than-average fees, currently at 3.49%, could deter some investors.
Financial experts advise caution, noting that investing in pre-IPO opportunities like this may not always yield favorable returns, especially for those seeking liquidity. While some deem the ARK Venture Fund an option for accessing high-potential investments, others suggest earlier entry would have been more advantageous.
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