How do so many people already own Elon Musk’s SpaceX?
Elon Musk's SpaceX is set to hold a potentially record-breaking initial public offering (IPO) as early as June, having already seen widespread private investment through special purpose vehicles (SPVs). Over 170 SPVs with 'SpaceX' or 'Space Exploration' in their names have been formed, mostly in the past six years.
SpaceX, founded in 2002, is preparing for a potentially record-breaking initial public offering (IPO) as early as June, aiming to raise over $50 billion. The company has already seen significant private investment through special purpose vehicles (SPVs), with over 170 such entities formed, mostly in the past six years. These SPVs allow groups of investors to pool money for a single investment in private company stock. Demand for SpaceX stock has been described as 'virtually insatiable' by Sim Desai, founder and CEO of Hiive, a platform for private stock sales. The proliferation of SpaceX SPVs highlights a thriving shadow market for private company stock and signals strong interest in owning the company's shares after it goes public. Some have praised this trend for democratizing access to investment opportunities, while others have raised concerns about the lack of transparency and potential for fraud, including national security risks associated with Chinese investors buying into SpaceX through SPVs and offshore accounts.
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