Last Updated: September 6, 2021
Since the company is already a household name, many are interested in how to buy SpaceX stock. Sure, the US aerospace manufacturer has some high-profile investors, but it’s not publicly traded. This makes investing in SpaceX much more complicated.
So, is it even possible to buy SpaceX stock? If not, are there indirect ways to get a share of this innovative company?
Let’s seek answers to these questions together!
Visionary entrepreneur Elon Musk founded SpaceX in 2002, intending to revolutionize the aerospace industry. In the past, space travel was something reserved for major government agencies and not a matter of private initiative. Therefore, it’s only logical that not many believed in SpaceX’s success at the moment of its foundation.
Today, however, SpaceX value is through the roof.
What makes SpaceX unique?
SpaceX has demonstrated that the future of space technology and space exploration doesn’t lay solely in the hands of government agencies. Its stock is so valuable because it’s the first corporation to launch, orbit, and recover a spacecraft successfully.
How much is SpaceX worth?
According to estimates from April 2021, SpaceX is currently worth around $74 billion. The funds raised by the company are a little under $6 billion. Its 2020 annual revenue stood at $1.2 billion, but according to some forecasts, it’s on its way to reaching $1.6 billion in 2021.
Starlink is seen as the biggest driver of SpaceX’s valuation. The space-based global internet network launched its beta test in October 2020. Its roll-out and development are expected to generate three-quarters of the company’s revenue in 2021.
SpaceX is not a public company. In fact, it’s questionable whether we’ll get to see the SpaceX IPO. It’s also worth mentioning that many potential investors are trying to get this stock before the company goes public. Now, the founder Elon Musk claims that there are currently no plans to take a company public. Sure, if that were to happen, it’s pretty easy to see how the company’s stocks would become blue chip in no time.
In terms of funding rounds, the company has quite an impressive track record. Check out the highlights:
- SpaceX raised $12.1 million in a Series A funding round in 2002, while the post-money valuation was $18.8 million.
2005’s Series B raised $22 million, and the post-money SpaceX value estimate was already at $70.5 million.
- In October 2010, the post-money valuation exceeded $1 billion. This was after the Series F round raised about $50.6 million.
- Series G in 2015 was the first to raise more than $1 billion, bringing the company’s value to $10.1 billion. This was also its most successful round of funding.
- In February 2021 was the last funding round of SpaceX at around $850 million.
- In total, the company has raised $5.9 billion.
How to Buy SpaceX Stock?
At the moment, it’s nearly impossible to buy SpaceX stocks directly. This privilege is still reserved for a select few entities. Nonetheless, there are more than several ways to get an indirect ownership interest of the company. In other words, you need to explore options on how to invest in companies that are not public.
Why isn’t SpaceX going public?
First of all, any space exploration company is heavily reliant on technological advancement, increasing the industry’s volatility. And people who are currently trying to find out how to invest in SpaceX might be the first to withdraw money if the market starts going down.
Second, SpaceX is performing quite admirably even as a private company, which means that there’s not much financial incentive to take it public. Since this company focuses on space tech, its current bottleneck is technological advancement, not capital.
How to buy SpaceX stocks indirectly?
One of the simplest ways to take indirect ownership of SpaceX is to invest in Google stocks. You see, Google is already an owner of around 10% of SpaceX shares. The problem is that the search engine’s parent company, Alphabet, has such a diverse portfolio that a minuscule part of your investment might actually go towards SpaceX.
To increase the percentage of investment that goes into SpaceX, you might want to invest in ETFs that trade in SpaceX. Using a stock screener can be quite helpful in this regard. Seeing as how the SpaceX ownership is reserved for a select few, all you need to do is find out which companies own a SpaceX share and invest in them instead.
There are also some trading platforms that specialize in making private corporations accessible to average retail investors. These platforms are looking for venture capitalists who are willing to sell a portion of their share at a certain price. The price, however, may be high. In other words, you need to learn how to buy private stock, which is far from simple.
Stocks Worth Considering
For all those who are disappointed that they can’t invest in SpaceX stock, there is a long list of similar tech companies and related equities to consider. And seeing as how 10% of US households hold international equity, there’s no reason to avoid global companies. So, here’s our list of suggestions:
When looking for SpaceX publicly-traded alternatives, Virgin Galactic is a natural choice. While the stock dropped over the course of 2020, the successful test flight from July 2021 may change this for good. It marked a new era for the company. Now, while Virgin Galactic is still to earn revenue from commercial flights to space, many investors already see potential in space tourism.
Although the technical analysis of the SPCE stock is growing after several successful tests, the IBD composite rating is still relatively low (45/99). This has also made some key investors unload the stock.
Just keep in mind that space exploration technology is a field of its own. While the current Virgin Galactic valuation is important, technological breakthroughs are nearly impossible to project and predict. Hence, its stock price could be highly volatile.
While Tesla has recently joined the S&P 500, which officially made it a blue-chip stock, the truth is that this isn’t necessarily enough to make it into a safe investment. Sure, now Tesla is among the largest public companies. But the majority of its competitors (in the field of electric vehicles) are picking up the pace, as well.
The relative strength rating of the stock is at 79, and the movement over the past 52 weeks is pretty stable. Like with the SpaceX value, the value of Tesla grew in 2020 when compared to the previous year.
Still, seeing how its shares are currently trading at an all-time high, it might not be the best time to buy Tesla stock.
When looking for stocks in the field of battery electric vehicles and hydrogen fuel cell electric vehicles, Nikola is an obvious choice. Since the stock is currently about 80% off the high price (when compared to June 2020), this might be a strong indicator that the company is a promising buy.
While Nikola’s value is nowhere near that of SpaceX, its earning potential is not neglectable.
The most significant two concerns are the competitive environment (Daimler, Volkswagen, Tesla, and Toyota are investing quite heavily in this field) and shaken trust. The company has made some false claims about its technology in the past. Despite the currently stellar performance, it might take a while until the negative publicity fades away.
Those wondering how to invest in SpaceX might also be interested in Nio. One thing that distances it from SpaceX is the fact that it’s a young company still looking to turn a profit. While Nio faced some substantial losses in 2021, the margin loss is reducing quite drastically. Due to the pandemic and its effects on technology, Nio shares dropped 73 cents in 2020. The 44 cents per share drop in 2021 doesn’t seem nearly as bad with that in mind.
According to the 52-week performance, there’s no buy point for Nio at the moment. Also, due to the data collection controversy regarding Chinese stocks, there might be a period of turmoil ahead for this company.
The bottom line is, while you may lament not being able to buy SpaceX stock and are desperately looking for an alternative, Nio is currently not a recommended buy.
As the AI industry is rapidly growing, more and more people are interested in DeepMind stock.
Google acquired the company in 2014. Now, since we’ve already mentioned that Alphabet has a share in SpaceX, buying its stocks would cover both of these companies you clearly are interested in.
DeepMind is also a possible investment alternative to SpaceX because Elon Musk is one of its key investors.
When looking for SpaceX investment alternatives, it’s impossible to skip Boeing. While the aerospace giant was a more popular stock before the pandemic, its value is still seeing a significant increase. People are flying once again, which means that the stock will likely rise in the near future.
Boeing shares are up 18% in 2021. Yet, we shouldn’t forget that they plunged 34% in 2020. So, there’s a long way to go until the company reaches the pre-COVID value.
Figuring out how to buy SpaceX stock is not a simple task, considering the fact that the company is not publicly traded. You would have to find someone with ownership of SpaceX stocks and try negotiating the sale with them or make an indirect investment (through a company that owns a share of SpaceX).
Elon Musk is clear about having no intention to take SpaceX public any time soon. However, this doesn’t mean that it will never happen. For now, however, it’s a lot simpler to look for alternative investment opportunities.
There is no SpaceX ticker symbol since the company is not publicly-traded. But you could look for investment trusts like SMT (LON:SMT), which have a certain exposure to SpaceX.
At the moment, SpaceX is a private company.
The simplest answer to this question is – no one knows. SpaceX founder Elon Musk is pretty vocal about the fact that he doesn’t intend to take the company public. Still, market watchers expect a SpaceX public offering in the next few years, when its cash flow is more predictable.
SpaceX gets its funding through major investors through funding rounds. Other than this, the company also generates revenue from NASA and ISS. Because of this, the US Department of Defense is also one of its major benefactors.
Buying SpaceX stock directly is impossible because SpaceX is not a publicly-traded company. This makes the question – how to buy SpaceX stock even more complex. Your only alternatives are investing in stocks in companies with exposure to SpaceX (indirect investment) or buying a share from SpaceX existing investors. This, however, means that they get to set the price.