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Elon Musk’s SpaceX Debuts on Nasdaq: How Indian Investors Can Get a Piece of the Action

Arth Vani DeskPublished: 1 min read
Elon Musk’s SpaceX Debuts on Nasdaq: How Indian Investors Can Get a Piece of the Action

Source: Economictimes

Arth Insight · What this means for your wallet

Immediate action
Consult with a tax advisor regarding TCS implications before remitting large sums to a US brokerage account for SpaceX shares.
  • SpaceX is now live on the Nasdaq with a valuation of $75 billion (approx ₹6.22 lakh crore).
  • Indian investors can buy shares through international brokerage accounts using the LRS route.
  • The 20% TCS applies to foreign remittances over ₹7 lakh, which investors must factor into their costs.

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Amount invested₹1,00,000
Holding period10 yrs
Expected return (p.a.)12%
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Potential gain
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Indicative estimate for education only — not investment advice.

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AI Summary

SpaceX has officially listed on the Nasdaq at a massive $75 billion valuation, opening doors for retail trade. While Indian investors could not participate in the IPO, they can now buy shares through the Liberalised Remittance Scheme (LRS).

Key Highlights
  • SpaceX is now live on the Nasdaq with a valuation of $75 billion (approx ₹6.22 lakh crore).
  • Indian investors can buy shares through international brokerage accounts using the LRS route.
  • The 20% TCS applies to foreign remittances over ₹7 lakh, which investors must factor into their costs.
  • Analysts remain divided on whether the high entry valuation justifies the inherent risks of the space sector.
Key Takeaways
  • SpaceX is now live on the Nasdaq with a valuation of $75 billion (approx ₹6.22 lakh crore).
  • Indian investors can buy shares through international brokerage accounts using the LRS route.
  • The 20% TCS applies to foreign remittances over ₹7 lakh, which investors must factor into their costs.
  • Analysts remain divided on whether the high entry valuation justifies the inherent risks of the space sector.

Elon Musk’s aerospace giant, SpaceX, has made its highly anticipated debut on the Nasdaq today, carrying a staggering valuation of approximately ₹6.22 lakh crore ($75 billion). This milestone marks one of the largest listings in financial history, transitioning the company from a private venture into a publicly traded entity accessible to global investors.

Missed the IPO? You can still buy

While the initial public offering (IPO) was largely reserved for institutional players and private equity, Indian retail investors now have the opportunity to participate in the company's growth via the secondary market. Because SpaceX is listed in the United States, Indian residents can purchase shares by utilizing the Reserve Bank of India’s (RBI) Liberalised Remittance Scheme (LRS).

Under the LRS, an individual can legally remit up to $250,000 (roughly ₹2.07 crore) per financial year for foreign investments, including stocks. To buy SpaceX shares, Indian investors need an account with a domestic brokerage that has a tie-up with US platforms or a direct account with international apps like Vested, IndMoney, or Charles Schwab.

What should investors consider?

Market analysts are currently split on whether SpaceX is a 'buy' at its current price. Here are the primary factors at play:

  • Unique Market Position: SpaceX currently dominates the private space sector, with recurring revenue from satellite launches and its Starlink internet service.
  • Premium Valuation: At ₹6.22 lakh crore, many believe the stock is priced for perfection, leaving little room for error in its ambitious Mars missions.
  • High Risk, High Reward: Unlike traditional tech companies, aerospace involves significant physical risks, where a single failed launch can impact investor sentiment.

Taxation and Costs

Indian investors must keep in mind that investing in US stocks involves more than just the share price. There are currency conversion fees and a Tax Collected at Source (TCS) of 20% on remittances exceeding ₹7 lakh in a financial year. Furthermore, any gains made will be subject to Capital Gains Tax in India, depending on the holding period.

While the excitement around Elon Musk’s biggest bet is high, financial advisors suggest that retail investors should treat SpaceX as a long-term play rather than a vehicle for quick gains, given the volatile nature of the space industry.

Investment in securities market are subject to market risks. Read all the related documents carefully before investing. This content is for informational purposes only and does not constitute financial advice.

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