Gina Rinehart's Hancock Prospecting has made a significant investment in Elon Musk's SpaceX, coinciding with the latter's record-breaking US$75bn initial public offering (IPO) and valuation of US$2.1tn. While Hancock Prospecting declined to disclose the exact amount, reports suggest at least A$1.4bn (£730m), making it one of the largest investors in the highly anticipated IPO.
Ms Rinehart's statement highlights her confidence in Elon Musk's leadership and vision, praising his ability to drive innovation in crucial sectors with long-term potential. She commended SpaceX as a "rare business" led by an "exceptional person," particularly drawing attention to its AI prospects, which she believes will profoundly shape industries and economies for decades.
The investment reflects strategic alignment between Hancock Prospecting's use of the Grok AI platform and SpaceX's ambitions in AI. Garry Korte, chief executive of Hancock Prospecting, suggested potential collaboration, including the company acting as a supplier of critical minerals essential for SpaceX's advanced technology infrastructure. This partnership could leverage Hancock's extensive mining expertise to support SpaceX's plans, which include launching up to one million data centres into space and establishing colonies on the moon and Mars.
Initial signs for Hancock Prospecting's investment are encouraging, with reports indicating a 20% return within a short period. Shares allocated at US$135 on Friday morning closed at US$160.95, underscoring strong market appetite for SpaceX. The company now ranks as the eighth-largest on the tech-heavy Nasdaq, surpassing valuations of Tesla and Meta despite its ambitious goals and prospectus warnings of potential ongoing losses.
Notably, under the IPO terms, Rinehart and other investors will not hold direct voting influence over SpaceX, with Elon Musk retaining majority control as chairman and chief executive. Following the company's debut, Musk reportedly became the world's first trillionaire, solidifying his grip on the company. As SpaceX enters public markets, global investors may indirectly back the company through Nasdaq 100 index funds, potentially including those in UK default superannuation funds.