How can you invest in Elon Musk’s SpaceX and Tesla from India? Understand the simple step-by-step process, including RBI’s LRS rules, TCS, W-8BEN forms, capital gains tax, and ITR compliance. Read the detailed business explainer. Elon Musk’s company, SpaceX, has raised $75 billion in its historic IPO, valuing the company at $2.1 trillion. With this impressive start, Musk has become the world’s first trillionaire, with a net worth of $1.1 trillion. Seeing this meteoric wealth creation, every investor wants to own a stake in Musk’s companies (Tesla, SpaceX, xAI, and Starlink). The good news is that in this era of globalization and digital platforms, any Indian citizen can legally invest in the US stock market. Yes, absolutely. Indian investors can directly purchase stocks listed on US exchanges through digital investment platforms like IndMoney, Vested, or HDFC Securities, or through US brokerage firms. A key feature of the US market is the “fractional share” feature. This means that if a SpaceX share is worth $160 (about Rs 15,232), you don’t need to buy the entire share; you can buy a small proportionate share for just $10 (about Rs 950). Furthermore, your investment is insured by the US SIPC for up to $500,000.
No Indian can send money abroad without discretion. To this end, the Reserve Bank of India (RBI) has implemented the Liberalized Remittance Scheme (LRS) under the Foreign Exchange Management Act (FEMA). Under this scheme, any resident Indian (including minors) can send a maximum of US$250,000 abroad in a financial year without prior permission. This limit applies per PAN card, meaning a family of four can invest up to US$1 million annually.
