Baillie Gifford trusts gain from SpaceX valuation – what does it mean for investors?

Baillie Gifford's funds have gained from Elon Musk’s relationship with US president-elect Donald Trump. Are private investments really a safe bet?

Baillie Gifford & Co. Headquarters As They Adapt To Life After James Anderson
(Image credit: Robert Ormerod/Bloomberg via Getty Images)

Elon Musk’s SpaceX became the most valuable private company in the world earlier this month when it launched its latest share buyback. The company and its investors plan to spend $1.25 billion repurchasing shares from employees at $185 a share, according to Bloomberg.

The price was a staggering 65% jump from the $112 per share paid in September, the last time employees were offered the chance to sell their shares. SpaceX had planned to offer $135 per share, but thanks to a “Trump bump”, it is raising the valuation.

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Rupert Hargreaves
Contributor and former deputy digital editor of MoneyWeek

Rupert is the former deputy digital editor of MoneyWeek. He's an active investor and has always been fascinated by the world of business and investing. His style has been heavily influenced by US investors Warren Buffett and Philip Carret. He is always looking for high-quality growth opportunities trading at a reasonable price, preferring cash generative businesses with strong balance sheets over blue-sky growth stocks.

Rupert has written for many UK and international publications including the Motley Fool, Gurufocus and ValueWalk, aimed at a range of readers; from the first timers to experienced high-net-worth individuals. Rupert has also founded and managed several businesses, including the New York-based hedge fund newsletter, Hidden Value Stocks. He has written over 20 ebooks and appeared as an expert commentator on the BBC World Service.