SpaceX, founded by Elon Musk in 2002, has revolutionized the aerospace industry, leading advancements in reusable rockets, space exploration, and satellite technology. With its innovative track record and ambitious future projects, SpaceX has captured the attention of investors worldwide. However, unlike many high-profile companies, SpaceX is privately held, making its shares unavailable to the general public. In this guide, we’ll discuss ways investors can get exposure to SpaceX, alternative strategies, and essential considerations for investing in SpaceX.

Why SpaceX Stock Isn’t Publicly Available

SpaceX is a privately-held company, meaning its shares are not traded on public stock exchanges like the New York Stock Exchange or NASDAQ. Instead, SpaceX’s shares are owned by private investors, including Elon Musk, venture capital firms, and a few institutional investors. Currently, SpaceX has no public shares available, making it challenging for regular investors to directly buy SpaceX stock.

Is SpaceX Planning an IPO?

Elon Musk has hinted at the possibility of a SpaceX IPO, but he’s clarified that it won’t happen until SpaceX’s ambitious Mars colonization projects are well underway. However, Starlink, SpaceX’s satellite internet subsidiary, is more likely to go public sooner, giving investors another way to gain exposure to SpaceX’s success.

Ways to Indirectly Invest in SpaceX

Although direct investment in SpaceX stock isn’t available, there are alternative ways to gain indirect exposure to the company’s success.

1. Buy Shares in Companies That Invest in SpaceX

Some public companies hold stakes in SpaceX. By investing in these companies, you may indirectly benefit from SpaceX’s growth.

• Alphabet Inc. (Google’s Parent Company): Google invested in SpaceX in 2015, gaining a minor equity stake in the company. Investing in Alphabet’s stock could offer partial exposure to SpaceX’s performance.
• Banking and Investment Firms: Certain banks, venture capitalists, and investment firms own stakes in SpaceX. Although these firms may have diverse portfolios, some include holdings in SpaceX.

2. Invest in Space Exploration and Defense ETFs

Exchange-Traded Funds (ETFs) focused on space exploration, technology, or aerospace defense may include companies that work closely with SpaceX or its competitors. While you’re not directly investing in SpaceX, these funds give you exposure to the space industry’s growth and future projects.

• ARK Space Exploration & Innovation ETF (ARKX): Managed by ARK Invest, this ETF invests in companies leading the space exploration sector, like Lockheed Martin, Virgin Galactic, and Northrop Grumman, all of which collaborate with or compete against SpaceX.
• Procure Space ETF (UFO): This ETF includes a wide range of companies related to space exploration, including satellite providers, aerospace manufacturers, and communications companies.

3. Look for Pre-IPO Investment Opportunities

Pre-IPO marketplaces, like EquityZen and Forge Global, offer access to private companies’ shares before they go public. Accredited investors may find SpaceX shares on these platforms, as employees or early investors sometimes sell a portion of their shares in the secondary market. Keep in mind, though, that prices can be high, and the investment comes with substantial risk.

Considering Starlink’s Potential IPO

If SpaceX takes Starlink public, it would be a significant opportunity for investors. Starlink, SpaceX’s high-speed satellite internet provider, aims to make global internet accessible, especially in remote areas. Starlink’s public listing would allow investors to invest in a company that represents a core part of SpaceX’s business model, even if it doesn’t offer full SpaceX ownership.

Steps for Accredited Investors to Invest in SpaceX Pre-IPO

For those interested in pre-IPO investment opportunities, the following steps may provide access to SpaceX shares on the secondary market:

1. Confirm Accreditation Status: Pre-IPO investments in private companies generally require “accredited investor” status, meaning an annual income of at least $200,000 (or $300,000 jointly with a spouse) or a net worth of over $1 million, excluding your primary residence.
2. Create Accounts on Pre-IPO Platforms: Register on sites like EquityZen, Forge Global, or SharesPost to access shares that are sometimes available on the secondary market. These platforms offer shares of private companies but often require minimum investments that can range from $10,000 to $100,000 or more.
3. Monitor Available Listings: Keep an eye on listings for SpaceX, as shares are sold intermittently. Prices may vary and are often based on the most recent valuation rounds of the company.
4. Conduct Due Diligence: Due diligence on pre-IPO investments is essential. Research SpaceX’s valuation, projected growth, and competitive market to make an informed decision.
5. Finalize Your Investment: If SpaceX shares become available and meet your investment goals, complete the purchase by following your platform’s instructions.

Benefits and Risks of Investing in SpaceX

Benefits of Investing in SpaceX

• Innovative Growth: SpaceX is a pioneer in reusable rocket technology, aiming for Mars colonization and commercial space travel, offering substantial growth potential.
• Future Starlink IPO: SpaceX’s internet subsidiary Starlink offers promising growth, with potential access to a public market if it goes public.
• Elon Musk’s Vision: Led by Elon Musk, SpaceX’s visionary approach to space exploration and travel makes it an attractive option for future-focused investors.

Risks of Investing in SpaceX

• Limited Liquidity: Private shares, including those in pre-IPO marketplaces, are less liquid, meaning you may not be able to sell them easily.
• High Valuation and Volatility: Private companies like SpaceX can have high valuations, which can lead to high share prices and increased volatility.
• IPO Uncertainty: There’s no guarantee SpaceX will go public in the near future, meaning investors may need to hold shares indefinitely.