As we all know, SpaceX is the most unique and valuable private company in the US. SpaceX is an aerospace manufacturer that also offers space transportation services. The company is associated with billionaire Elon Musk, who is also the founder of SpaceX, since 2002. Eventually, its founder wanted it to transport people to Mars. Learn, ‘How to buy SpaceX stock?’.
Currently, buying SpaceX shares is not possible as it is still a private company, due to which its shares are not available on the stock market. But no need to worry, every lock has a key to open it. That could be directly or indirectly sometimes.
SpaceX Overview
The company SpaceX was founded by visionary entrepreneur Elon Musk in 2002, which was a revolution for the aerospace industry. Earlier, travel space was something reserved for major government agencies and nothing for private initiatives. In the beginning, no one believed in the foundation of SpaceX’s that one day its value would touch the roof of success. Now it has over 9,000 employees and its value is exceeding $100 billion.
Direct Investment in SpaceX Stock
Right now, there is no availability of SpaceX stock through public means. But for those investors who want to invest directly, they can invest in alternatives to direct investment. Investors can seek out stocks that have exposure to Musk’s rapidly increasing company.
For: Investors can get exposure to SpaceX by investing in Alphabet (GOOG, GOOGL). Because Google already owns roughly 10% of SpaceX,
Indirect Investment in SpaceX Stock
When there is no choice left for stock buyers Neither public nor private shares of a target company are available for investment directly. Investors can look for loopholes that are available in public markets and which will all need to be considered on their own merits, which may or may not relate to your target or may be affected by different bossiness. Such investments are:
ETFs and Funds
Mutual funds or ETFs related to industry sectors
ARKX: ARK Space Exploration & Innovation ETF is an exchange-traded fund launched in April. Its expense ratio is 0.75%. Its AUM is also $358.65M.It is a sector equality type fund.
DFEN: Daily Aerospace & Defence Bull 3X Shares is an exchange-traded fund.
I Own U.S. Aerospace & Defense ETF.
SPDR S&P Aerospace & Defense ETF (XAR).
Other publicly-traded companies in the sector
for example, The Boeing Company and HEICO Corporation
Synergistic companies or suppliers
such as GARMIN, Ltd. and IRDM
Companies with a Basic Investment in Target In the case of investments, you will see the Bank of America and Fidelity listed as investors.
Why isn’t SpaceX going public?
All space exploration companies always try to make technological advancements and increase the industry rapidly. Those investors who are currently trying to invest in SpaceX in different ways might be the first ones to withdraw money if the market starts going down.
SpaceX is a private company that doesn’t have much financial incentive to take it public. And their main focus is on technology advancement, not capital investment.
How Can I Buy SpaceX Stock?
SpaceX is still a private company, which means its shares are not available on the stock market. However, there are different ways to buy its stocks by researching and finding out who has SpaceX shares, but sometimes things crash. For example,
Tesla has been removed from the S&P 500 ESG after CEO Elon Musk trashed the system.
To buy shares, one such firm is Equity Zen, which is a registered security firm, especially known for its specialisation in connecting accredited investors with private company shareholders who are looking to sell their shares.
Astra not only made its first orbit with rocket LV0007, but also joined SpaceX and Rocket Lab.
Lockheed Martin is another long-time major player in the aerospace and defence sectors.
How Does SpaceX Make Money?
Traveling to space is exciting, but making money immediately is not that easy for SpaceX. It currently relies on revenue from the sale of its launch capabilities to various companies. For example, various companies will hire SpaceX to launch satellites on their behalf. Even governments also pay SpaceX to keep the International Space Station supplied. Recently, NASA announced that it would work with SpaceX to launch another mission to the moon.
Conclusion
There are so many ways to invest in SpaceX shares through private companies, but somewhere it’s not safe as the founder of the company, Elon Musk, makes it clear that every penny SpaceX makes goes into his mission to Mars. And that is a plan to get a million-person city to Mars during his lifetime. So it is not intended to be a profitable enterprise. And also, Elon Musk mentioned in a couple of interviews that they do not plan to go public until after their first successful mission to Mars.
Frequently Asked Questions
Are there any symbols for SpaceX’s stock?
No, but you can invest in SMT (LON: SMT), which is a trust that has certain exposure to Elon Musk’s SpaceX.
Is it possible for SpaceX to go public in a few years?
No one knows, but many market investors are expecting its public offering in the upcoming decade. The truth is that SpaceX’s founder never wants to take the company public. Especially until the Mars civilization mission succeeds.
What problems might we encounter if we invest in SpaceX?
Yes, it is a very high-cost business and also a risk of messing up accidents during launch or missions.
