Experts warn SpaceX's $1.77T valuation defies gravity — here's how Canadians can invest in space while staying grounded

Elon Musk

If global speculation, buzz and pent-up demand were fuel, the SpaceX IPO would have enough to blast a fleet of rockets to the moon.

Elon Musk’s private firm is launching into the public sphere this month, with a valuation of US$1.77 trillion (1) (C$2.47 trillion). That’s more than 430 times what it cost to send Canadian astronaut Jeremy Hansen and his NASA crewmates to the moon on Artemis II.

The SpaceX buzz has been building for months, with institutional and retail investors worldwide lining up for this investment moonshot. Competition will be fierce. The company has reserved 5% of its shares for “certain employees” at SpaceX and private investors in this IPO, as CNBC reports (2).

At the same time, analysts are warning of the risks of buying into an IPO that seems to defy gravity. Morningstar analysts Nicholas Owens and Suryansh Sharma say (3) SpaceX is “significantly overvalued” — worth US$780 billion, less than half of its current valuation.

They advise waiting to buy it, noting that private investors and employees will be selling more SpaceX shares in coming months, which could moderate the stock price.

So what’s a Canadian investor to do? If you want to get in on the global space economy, there are a number of options already on the market. And you don’t have to wait in line.

Don’t Miss The space economy is already a multi-billion-dollar industry

SpaceX is a juggernaut, but it’s not the only player. Last year, the global space economy was valued at US$626.4 billion, according to Novaspace (4). The World Economic Forum projects (5) it will grow to over US$1.8 trillion (C$2.5 trillion) by 2035.

And Canada is a serious player. The domestic space sector employs more than 20,000 people and generates over C$7 billion (6) in annual revenue. Royal Bank of Canada (RBC) projects this could grow (7) to C$21 billion by 2035.

So what is the space economy? For many, the phrase conjures up images of space exploration, and that’s definitely a part of it.

Canadians can buy into that vision with stock in MDA Space (TSX: MDA) — MacDonald, Dettwiler and Associates, the Brampton-based firm behind the Canadarm 2 on the International Space Station.

MDA is now developing the Canadarm 3 and has signed on to provide robotics support for NASA’s Gateway (8) mission, a space station that will orbit the moon. Its stock climbed approximately 45% in the past year, and the company is profitable — unlike many space startups.

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Mississauga-based Magellan Aerospace (TSX: MAL) is another option. It provides rockets and deep-space technology to space agencies like the Canadian Space Agency (CSA) and NASA.

Magellan reported Q3 2025 revenue of C$278.3 million, up 15.6% year-over-year (9).

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Most of the money in space ends up floating closer to Earth

As exciting as the thought of space exploration may be, the bulk of the space economy revolves around more Earthly matters.

Moneywise spoke to Chris McHaney of Global X Investments Canada about the sector. He’s executive vice-president and head of the firm’s Investment Management and Strategy division.

This spring, Global X launched a Canadian-listed exchange-traded fund (ETF) specifically for the space economy: ORBX (10).

“Most of this is for us on the ground,” he told Moneywise.

McHaney cites GPS, a satellite-based system that helps people find exactly where they are on Earth: “We use it every day.”

He highlights the essential role of all the other satellites orbiting Earth, which help enable communications via voice, text and imagery. Governments, public agencies, nonprofits, media and private individuals rely on satellite data to gain information on the impact of wars, natural disasters and more.

McHaney points to the role of Starlink, Elon Musk’s satellite-based broadband internet provider, which Morningstar’s Owens and Sharma deem the most profitable business unit at SpaceX thanks to “its unmatched ability to provide connectivity in remote areas worldwide.”

Canada’s stake in the space economy

Not surprisingly, Canada’s MDA — behind the Telesat Lightspeed and Globalstar satellite networks — is a big player in the satellite sector as well. McHaney notes it is (for now) the sole Canadian holding in the ORBX portfolio. Most of the holdings are U.S.-based.

Defence is another big driver of the space economy. This March, Canada committed (11) C$200 million to establish its first spaceport in Nova Scotia as part of a national defence strategy.

McHaney said the advantage of such government investment is that it offers investors in the space economy some long-term security.

“We talk a lot about government and defence-related spending,” he said. “These are things that are going to happen, where people want to spend in terms of national security.”

Outside of the Canadian-listed market, there are a number of U.S.-listed space ETFs that can be accessed through Canadian brokerage accounts, including:

Procure Space ETF (UFO) — One of the most focused space economy ETFs. Top holdings include Planet Labs and MDA Space Ltd.

ARK Space & Defense Innovation ETF (ARKX) — Delivered approximately 74% gains over the past year; top holdings include L3Harris Technologies and Rocket Lab

SPDR S&P Kensho Final Frontiers ETF (ROKT)

Roundhill Space & Technology ETF (MARS)

Keep in mind that the U.S.-listed stocks held in a Tax-Free Savings Account (TFSA) are subject to a 15% withholding tax on dividends under the Canada-U.S. tax treaty. Registered Retirement Savings Plans (RRSPs) are generally exempt from this withholding tax under the treaty.

Even if you don’t buy into SpaceX and you plan to limit your exposure with an ETF, space is still a risky sector, so make sure it fits with your goals and your portfolio before putting money down.

Experts warn SpaceX’s $1.77T valuation defies gravity — here’s how Canadians can invest in space while staying grounded

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