Can You Buy SpaceX Stock?

Space Exploration Technologies Corp, commonly known as SpaceX, recently made headlines with its fifth successful test of its Starship rocket system. Investors crave access to this exciting space exploration company, but when will shares be publicly available? Read on to learn more about the future of SpaceX and its prospects for a 2024 IPO.

What is SpaceX?

Elon Musk founded the private aerospace manufacturer and space transportation company SpaceX to colonize Mars and make life multi-planetary. Since its inception, SpaceX has made significant strides in rocket and spacecraft design, revolutionizing the space exploration industry.

One of SpaceX's most notable achievements is the development of the Falcon 9 rocket, a reusable launch vehicle that has significantly reduced the cost of space access. The Falcon 9 has successfully launched numerous satellites, cargo and even astronauts to the International Space Station. Another groundbreaking project is the Starship, a fully reusable spacecraft designed for interplanetary travel to transport humans to Mars.

SpaceX's innovative approach and technological advancements have garnered significant attention and investment. As of September 2024, the company had a market valuation of approximately $210 billion, making it one of the most valuable private companies in the world. Notable investors include Founders Fund and Valor Equity Partners. While SpaceX has not yet gone public, its substantial valuation and ambitious goals position it as a significant player in the future of space exploration.

Can You Buy SpaceX Stock?

SpaceX remains a private company, meaning its shares are not available for purchase on public stock exchanges. This means individuals cannot directly buy or sell SpaceX stock like they would with publicly traded companies.

While it’s not impossible to acquire shares of SpaceX, The ability to purchase them is primarily limited to:

• Accredited Investors: These are individuals or entities with a net worth of at least $1 million (excluding their primary residence) or an annual income of $200,000 or more (or $300,000 for joint filers) for the past two years.

• Institutional Investors: These include entities like hedge funds, mutual funds, pension funds and insurance companies.

• Purchasing Shares in Companies that Hold Stakes in SpaceX: Some publicly traded companies may hold stakes in SpaceX. By buying shares of these companies, individuals can indirectly gain exposure to SpaceX, although each company likely has a different level of exposure and process.

While SpaceX has achieved remarkable success, its shares remain privately held and direct purchase is generally restricted to accredited investors, institutional investors or indirect investment through publicly traded companies that hold SpaceX stakes.

When Will SpaceX IPO?

Want to learn how to buy SpaceX stock? Unfortunately, SpaceX has not indicated any plans for an Initial Public Offering (IPO) as of this writing. The company has been financially stable and prosperous without public investor money, demonstrating an ability to fund operations and growth without raising capital through an IPO.

While there has been speculation about SpaceX potentially going public soon, Elon Musk has emphasized that the company's primary focus is achieving predictable and sustainable revenue growth. Before considering an IPO, SpaceX aims to establish a consistent and reliable business model that can withstand market fluctuations and maintain long-term value.

While an IPO may be possible for SpaceX in the future, as of September 2024, the company has no immediate plans to go public. Its strong financial position and focus on sustainable growth suggest that any future decision regarding an IPO will be carefully considered based on the company's long-term strategic goals.

Can You Invest in SpaceX?

Investing in SpaceX is tricky if you aren’t an accredited investor with access to private companies. While you may not be able to claim any actual shares, you can still gain indirect exposure through public companies or mutual funds that hold SpaceX shares or through companies that supply the space exploration firm with its parts and materials.

For example, the Ark Venture Fund holds shares in several private tech companies, including SpaceX, OpenAI and Discord. To see if you can purchase shares of funds like the Ark Venture Fund, contact your advisor or visit Ark Invest’s website for more details.

SpaceX Alternatives

Space exploration is a growing investment theme in the tech sector and SpaceX isn’t the only company making exciting advances. Here are five other public space companies that you can add to your portfolio today:

Rocket Lab USA, Inc. (NASDAQ: RKLB)

Rocket Lab USA, founded in 2006 by Peter Beck, is an American aerospace manufacturer and launch service provider headquartered in Huntington Beach, California. The company designs, manufactures and launches small satellite launch vehicles. Its Electron launch vehicle is the world's first commercially operated reusable orbital rocket. Rocket Lab has also developed the Photon spacecraft platform, which can be used for various missions, including Earth observation, communications and scientific research.

Why We Picked It: RKLB shares have been on fire in 2024, as the stock is up more than 100% year-to-date. The company reached profitability in 2022 and continues to pull in record revenue.

Astra Space, Inc. (NASDAQ: ASTR)

Astra Space is an American aerospace company headquartered in Alameda, California. It was founded in 2016 by Michael Griffin, Adam Baker and Chris Kemp. The company's Rocket 3.3 launch vehicle is designed to launch small satellites into low Earth orbit. The Astra Spacecraft Platform competes with Rocket Lab’s Photon system for Earth observation and research. Astra Space has been delisted from major exchanges, making it a penny stock with significant volatility risks.

Why We Picked It: Despite being delisted from NASDAQ for falling under $1 per share, Astra Space has seen its cash flow improve and has been working to reduce liabilities from its Q4 2023 report.

Virgin Galactic Holdings, Inc. (NYSE: SPCE)

Virgin Galactic is a British American spaceflight company founded in 2004 by Richard Branson. The company aims to make space travel accessible to the general public. Virgin Galactic has developed the SpaceShipTwo spacecraft, designed to carry passengers to suborbital space. The company has also developed the WhiteKnightTwo launch vehicle, which is used to carry SpaceShipTwo to high altitudes. Virgin Galactic plans to begin commercial spaceflights in 2025.

Why We Picked It: Around Christmas 2023, SPCE reached $55 per share, but it plummeted to under $10 and remains trading around $7. However, the stock appears to have found a bottom and the company is ramping up efforts to make commercial spaceflight a reality for the public.

Iridium Communications Inc. (NASDAQ: IRDM)

Iridium Communications is an American satellite telecommunications company that provides voice and data communications services to the global market. The company's Iridium NEXT satellite constellation consists of 66 low-Earth orbit satellites that cover almost every part of the globe. Iridium Communications is headquartered in McLean, Virginia.

Why We Picked It: IRDM reported earnings on Oct. 17 and has beaten analysts’ estimates in the three previous quarters. The stock is currently a consensus Buy with an average price target of $50.40, representing a potential upside of more than 65%.

SpaceX Does Not Have an IPO Scheduled, But Investors Should Utilize Benzinga’s Tools to Keep Themselves Informed

Unfortunately, you need to be an accredited investor to buy SpaceX stock since the company is private and has no plans to announce an IPO anytime soon. If you want to invest in SpaceX today, you’ll need to find funds that hold shares (such as the Ark Venture Fund) or consider a substitute such as SPCE or IRDM.

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