Space Exploration Technologies
At the forefront of the new space economy, including logistics and satellite internet connectivity, ‘Starlink’.
Image credit - © SPACEX
What does it do?
SpaceX is a space-transportation company founded by Elon Musk. It designs, manufactures, and launches advanced reusable rockets and spacecraft. By embracing innovation and vertical integration, it has opened a series of cost and capability improvements which are transforming the space industry. Reusability is key. The old model of single use rockets was akin to buying an expensive car to make a single journey. Reusable cars allow mass transportation on the ground; reusable rockets allow mass transportation in space.
It is also establishing its satellite constellation for global internet connection, called Starlink, which is rebuilding the internet in outer space. We are therefore excited by the long-term potential of mass space logistics, satellite connectivity, and space tourism.
Why do we invest?
This is the first time in 4-billion-years of Earth’s history that it’s possible to realise the goal of interplanetary life.
SpaceX’s competitive advantages are leadership in reusability, vertical integration, and a broad growth strategy. Reusability places it years ahead of competitors, with others still transitioning from outdated engines. The company's vertical integration allows superior cost and schedule control. SpaceX's innovative culture and flat management structure attracts top engineering talent away from traditional aerospace.
Its Starlink project has thousands of satellites and millions of subscribers. Starlink has grown by serving individual and business customers, including in remote areas and for aviation and maritime sectors. It now has customers in 100 countries around the world. Its fast satellite deployment has made it a disruptor in the telecoms and internet services, surpassing competitors with its lower latency, improved user experience, and attractive economics.
SpaceX's growth will come from advancements in launch capabilities, particularly with the Starship rocket, which can radically enhance orbit capacity. It has potential for substantial annual growth in launch mass, such as satellites. Growth is also about broader implications for the space industry's supply chain. The development of next-generation rockets can support more ambitious missions, including space tourism and infrastructure deployment for lunar and Mars missions.
Who is key?
Elon Musk, the visionary behind SpaceX, is complemented by Gwynne Shotwell, who ensures the company remains on its ambitious path. Time magazine celebrates Shotwell as a pioneering figure in space without needing a spacesuit, highlighting her critical role in Starlink's finance, customer management, and government affairs. Appointed as president and COO in 2008, Shotwell has proven to be an invaluable partner. Her assertive yet easy-going nature allows her to effectively communicate with Musk, balancing his ideas with practicality. This dynamic partnership has been instrumental in SpaceX's continued success and innovation, demonstrating the power of effective leadership and collaboration in achieving ground-breaking advancements in space exploration.
When
Founded in: 2002
Invested in: 2018
Where
Headquartered: U.S.
Listing status
Private
Important information
The company showcased on this page is part of a diversified portfolio. The commentary should not be taken as advice on an individual stock.
Investment trusts are UK public companies and are not authorised and regulated by the Financial Conduct Authority. You may not get back the amount invested and please bear in mind that past performance is not a guide to future performance.