How to Buy SpaceX Stock
Want to invest in SpaceX? Not so fast. It's not publicly available yet, but there are ways you can still invest in the company. Read on to learn how.
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Buying SpaceX stock is hard but NOT impossible.
The challenge?
SpaceX remains a private company. Elon Musk, founder-owner, is strict about who can invest. It is so hard to get in to, even price offerings are only held through private meetings.
Good thing there are other ways to buy shares of SpaceX. So if you want to grab a hold of these shares, here's all you need to know.
Can you buy SpaceX Stock?
You cannot buy SpaceX stock from stock exchanges. Since SpaceX is still a private company, it's not available in the public stock market. But that doesn't mean it will never be available.
Venture capital funds is the current investment used to fund SpaceX.
Musk said that SpaceX's public offering might interfere with its aim to reach Mars. The chance of SpaceX going public may only happen after they're already making regular trips to Mars.
There is no specific date yet for its IPO (Initial Public Offer). But there are other ways to buy shares of SpaceX indirectly.
SpaceX does not have a stock symbol yet because it is still a private company. It will become available once it becomes a public company.
How to buy SpaceX stock before the IPO Date
Currently, SpaceX shares can only be found on private marketplaces. These platforms let people invest in companies that are not yet public. With private marketplaces, you can buy SpaceX stock before its IPO date.
SpaceX allows shareholder-employees and investors to sell their shares. Those who want to sell their stock can trade it in a secondary marketplace. This gives retail investors an opportunity to buy SpaceX stock.
Previously, SpaceX stock was offered on EquityZen and MicroVentures. But they are generally only open to accredited investors and not always open and available. So it's best to visit their websites first.
Here are simple steps to access secondary marketplaces.
- Sign up online with your chosen platform (Example: EquityZen)
- Undergo verification of your accreditation
- Once verified, you can browse available offerings
- Fund your account and buy shares
How to Indirectly Invest in SpaceX stock
Another option is to invest in the key investors of SpaceX. This includes three giant public companies: Alphabet (Google), Fidelity, and Bank of America. But if you're looking for the easiest way to invest indirectly, start with Alphabet (Google).
Alphabet and Fidelity, combined, own 10% of SpaceX since 2015. Together, the companies invested $1 billion in SpaceX.
Google's support for SpaceX also fuels its efforts on satellite internet. Plus, the company has started buying imaging satellites and other kinds of sensors. Are they planning to be in orbit, too?
Either way, investors find it a win-win trade.
How to invest through Alphabet:
You can buy Alphabet shares using any brokerage or trading app.
- Create your account on their website or app
- Fund your account. Note that some platforms require a minimum fund
- Search for Alphabet (ticker symbol GOOGL)
- Enter how many shares or the dollar amount you want to buy
- Place the order
Deposit $100 and Get $10 from eToro USA LLC
- Sign up for an eToro account
- Deposit $100
Get up to 12 free fractional shares
- Register and open a new account.
- Then, deposit any amount to get 6-12 free fractional shares.
How to Invest in alternatives to SpaceX stock
The aerospace industry and market reached its peak value of $298 billion in 2020. With a projected 7.7% growth rate, its value by 2025 will be $430.9 billion.
So if investing indirectly through Alphabet doesn't work for you, there's one last option. You can invest in other available aerospace companies.
Here are some SpaceX alternatives you can invest in:
- Astra Space Inc. (NYSE: ASTR) is among the companies that successfully reached orbit for the first time with the LV0007 rocket. This adds Astra Space Inc. on the list with SpaceX, Rocket Lab, and Virgin Orbit.
- HEICO Corporation (NYSE: HEI) focuses on aerospace, industrial, defense, and electronics technology. For 60 years, their products have been utilized in commercial and military services, and other industries.
What is SpaceX's valuation?
| Valuation History | |
|---|---|
| Date | Valuation (approx) |
| Jan 2023 | $137B |
| July 2022 | $127B |
| Late 2021 | $100B |
| August 2020 | $46B |
| May 2019 | $33.3B |
On January 2, 2023, CNBC reported that SpaceX is raising $750 million in a new funding round. This put the company's value at $137 billion.
This is after Bloomberg reported on December 12, 2022, that SpaceX is offering insider shares at $77 per share to its employees and investors. That would have put the value closer to $140 billion.
SpaceX's current valuation surpassed aerospace giants Boeing and Lockheed Martin. Its market value has grown 4x in the last four years.
Why invest in SpaceX
SpaceX has become the leading aerospace company, overtaking Boeing. Here are some reasons why it's worth keeping on your radar:
- Significant growth in the aerospace and communication industry
- Success history; Starship and Starlink projects started successfully
- SpaceX has a well-established system for raising capital
At first, investors in aerospace were notably government agencies and wealthy countries. Now, giant companies and equity firms are starting to notice the promising future of low-cost space travel.
Venture Capital is currently the main investment funding SpaceX. However, some of its investors think that SpaceX will eventually go public to fund more and bigger projects.
SpaceX has not IPO yet. But its founder-owner, Elon Musk, expressed the possibility of making SpaceX public when there is regular travel to or landing of the spacecraft on Mars.
Project Milestones
SpaceX successfully reduced spaceflight costs by innovating the Merlin engine, a cheaper alternative.
Reusable rockets were also made possible by SpaceX. Before, other companies launched one-time rockets.
It marked history as the first company to launch and return spacecraft with Falcon 9. And in 2017, the Dragon capsule was reused to land at the International Space Station (ISS).
Now, SpaceX is focused on its aim to colonize Mars.
They designed Starship for various uses like faster transportation on Earth, building bases on the moon and Mars, and eventually launching settlers to Mars.
This 2023, Starship plans to fly around the moon with Japanese businessman Maezawa Yusaku and several other artists.
FAQs
Who owns SpaceX?
SpaceX was founded by Elon Musk in 2022. Currently, he reportedly owns 44% of SpaceX.
What are SpaceX Products?
SpaceX is known for Falcon 9, Falcon HeavyDuty, Starship, and Starlink.
Is SpaceX stock worth buying?
SpaceX stock is worth keeping an eye on. SpaceX is the leading space launch company in the U.S. Its current valuation of $140B surpassed aerospace giants Boeing and Lockheed Martin. It pioneered low-cost and reusable space crafts.
What is SpaceX's predicted IPO date?
There is no specific IPO date. SpaceX going public is most likely to happen when they already have regular trips to Mars, according to an interview with SpaceX President Gwynne Shotwell.
What is SpaceX's predicted stock price in 2023?
SpaceX has no predicted stock price yet. But the current fund offer to its employees and private investors runs around $77, as reported.
Bottom Line
SpaceX remains a private company. But there are other ways to buy its stock. For now, the easiest and most accessible way to support SpaceX is to invest in Alphabet (a key investor). You can also buy alternative aerospace company stock.
But take note that buying stock through these alternatives has its own risks. It is still best to do your own research or look for financial advisers to guide you in your investment.
References
- ^ EquityZen. FAQ: What's the minimum investment size?, Retrieved 3/22/2023
Write to Miel Ysabel at feedback@creditdonkey.com. Follow us on Twitter and Facebook for our latest posts.
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