My Self-Invested Personal Pension (SIPP) is no stranger to growth stocks. It features a lot of invigorating names that I’m bullish on in the long term, including MercadoLibre, Shopify, WiseAND Rolls-Royce.

But SpaceX would be a unique addition because it offers the chance to invest in cutting-edge rockets, a mega constellation of satellites, space exploration and potentially space AI data centers. I like that sound.

In a filing ahead of its initial public offering (expected on June 12), SpaceX said it would issue shares for $135 apiece (about £100). That would value it at about $1.75 trillion.

So should I load up on SpaceX stock?

Business on three legs

The first thing to note is that we still don’t know for sure whether the price will be $135 per share or how much SpaceX will ultimately raise (the goal is at least $75 billion). Ultimately, demand will decide.

But back to the core business, we know that SpaceX has three divisions: the rocket launch module, the Starlink satellite internet, and the artificial intelligence division.

The first includes the Falcon rocket, which completed 165 flights last year, making SpaceX the world’s dominant supplier of launch vehicles. It recently raised its launch cost to $74 million (still cheaper than competitors due to reusability). It also houses a huge fresh generation spaceship.

The second, Starlink, currently has over 10 million subscribers and is the fastest-growing telecommunications company in history. What I like here is that Starlink has a huge moat (no one can match its 10,000+ satellites and the barriers to entry are huge). Starlink has growing subscription revenues that are recurring and high margin.

Finally, there is the AI ​​portion consisting of Grok AI tools and the social media app

Cash burner

Why? Simply because it wastes cash and causes huge losses as you can see below.

I’m not too concerned about the loss of the missile division as Starlink’s dominance is cemented by its rapid satellite launch cadence. And while Starship development requires ongoing, massive investment, it would widen SpaceX’s moat even further if it can operate reliably.

But the losses associated with Grok, AI and X discourage me here. This means we can’t even apply the basic earnings multiple, which suggests the stock will be significantly overvalued this month.

I’m sticking to it

I am in contact with SpaceX through A Scottish mortgage investment fund (LSE:SMT). The FTSE100 the fund has a forceful position in the company, which it values ​​at approximately $3 billion.

It could be worth even more if SpaceX reaches a $1.75 trillion valuation. As IPO excitement builds, shares in Scottish mortgage companies have surged 44% in the last six months.

The short-term risk is that SpaceX bombs right after the IPO, destroying the holding company’s value before it can crystallize profits. And this could result in a forceful sell-off in Scottish mortgages.

However, if this happened, I think it is worth considering this action. Because apart from SpaceX, the trust also holds vast stakes in other world-class companies such as Amazon, Nvidia, ASMLAnthropic and Strap.

For now, I’m sticking with Scottish Mortgage for my SpaceX exposure.

Should you invest £5,000 in Scottish Mortgage Investment Trust Plc now?

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Ben McPoland owns shares of MercadoLibre, Nvidia, Scottish Mortgage, Shopify, Wise and Rolls-Royce.