Want to invest in SpaceX, Revolut, and TikTok? Consider buying this FTSE 100 stock

Investors looking for a stock to buy to gain exposure to Elon Musk’s rocket company SpaceX have a few options at London Stock Exchange. These include Baillie Gifford US Growth Trust again Edinburgh Worldwide Investment Trustof which there are both FTSE 250, and little known The Schiehallion Fund.

But there is only one FTSE 100 index: Scottish Mortgage Investment Trust (LSE:SMT). Today, the £12.6bn trust has SpaceX as its top holding.

But what is so special about SpaceX? And why would investors want exposure to it?

Young years before the competition

Simply put, SpaceX has completely revolutionized the global launch market by opening reusable rockets (its heavy horse rocket is called Falcon 9).

The Falcon has dramatically reduced the cost of reaching low Earth orbit, making space a growing commercial reality. And not just to other firms, but to its Starlink satellite business, which has now delivered reliable high-speed internet to more than 10m customers.

As Scottish Mortgage points out: “Reusability is key. The old model of used rockets was like buying an expensive car to make a single trip. Reusable vehicles allow mass transportation on the ground; reusable rockets that allow mass transportation into space…Reusable surfaces [SpaceX]years ahead of competitors.”

According to estimates, the global space economy could reach $1.8trn by 2040, up from about $613bn last year. In the middle, SpaceX is streets ahead of competitors thanks to constant innovation, cost advantages, and Musk’s lifelong mission to make humans a living species.

A stacked portfolio

But SpaceX is not the only transformative private company in Scottish Mortgage’s portfolio. Two others that have become global juggernauts are TikTok owner ByteDance (third largest trust) and UK fintech Revolut (minor position, at 0.8% of assets).

With an estimated value of $550bn, ByteDance is a large-scale AI company (its platforms reach more than 4bn monthly active users). It is also making strong inroads into many markets, including gaming, education, and e-commerce, supported by rising digital ad revenue.

Meanwhile, Revolut finally received its full UK banking license this week, allowing it to offer high-income products such as mortgages, personal loans, and overdrafts.

Revolut founder and CEO Nik Storonsky commented: “This is an important step in our mission to build the first truly global bank.” It aims to launch in 30 new markets by 2030.

While there is no timeline for a ByteDance IPO, Revolut could go public later this year or early 2027.

SpaceX mega-IPO

Scottish Mortgage began investing in SpaceX in 2018, with a value of $31bn. And Reuters recently reported that Musk is seeking $1.75trn in an initial public offering, likely as early as June.

Clearly then, the FTSE 100 trust is sitting on huge unrealized gains. Indeed, the holding has grown to a meaty 15.4% weight in the portfolio. Given this size, it is highly likely that Scottish Mortgage will raise a profit from the IPO.

The biggest risk is that the IPO is a flop, which could cast doubt on the valuation of other unlisted Scottish Mortgages. Volatility is also a given with a Scottish Mortgage, especially if Nasdaq– Listed growth stocks are for sale.

But on balance, I continue to see this FTSE 100 trust as an excellent option to consider for exposure to the world’s most volatile companies.