World's biggest wealth fund buys $1.2 billion of SpaceX stock

Norway's Government Pension Fund Global, the world's biggest investment fund, has acquired a stake in SpaceX, the rocket and satellite company founded by Elon Musk. The fund, valued at $2.3 trillion, disclosed its 0.05% ownership in SpaceX, worth $1.22 billion as of June 30, marking its first such investment. This move is significant for SpaceX, which went public in June 2022, as it signals validation from a cautious, conservative government fund that manages Norway's oil and gas earnings on behalf of its citizens.

The fund's investment in SpaceX, alongside other tech giants like Nvidia, Apple, and Microsoft, underscores the company's transition from a private entity to a core technology holding. While the fund's stake is relatively small compared to its overall portfolio, it carries weight due to the fund's reputation for advocating for independent boards and shareholder rights.

For investors, this endorsement suggests that SpaceX's stock, despite its volatility, has gained credibility, and long-term holders may view the investment endorsement as a positive sign.