How to Buy SpaceX Stock

SpaceX is a prominent player in the space industry, leading where others follow. The company's visionary founder, Elon Musk, brings a track record of success. The company operates in a flourishing industry and enjoys global investor support.

SpaceX is a private company, and its shares are not publicly traded. Investors can get indirect exposure to SpaceX through investments in companies with SpaceX shares. This approach allows investors to benefit from SpaceX's achievements with no direct ownership.

What is SpaceX?

SpaceX is a private American aerospace manufacturer, space transportation company and satellite communications company founded by Musk in 2002. The company's mission is to revolutionize space technology and make space travel more affordable.

SpaceX has achieved many important milestones. These include the development of the Falcon 1, Falcon 9 and Falcon Heavy rockets, designed to transport payloads into orbit. The successful landing and reusability of the Falcon 9 rockets is one of SpaceX’s standout achievements, significantly reducing the cost of space travel.

SpaceX also developed the Crew Dragon spacecraft to carry astronauts to and from the International Space Station (ISS). This was a significant U.S. milestone because the country no longer relied on Russian Soyuz rockets for crewed travel.

As the parent company of Starlink, SpaceX is revolutionizing satellite internet service. It aims to create a constellation of thousands of small satellites in low Earth orbit. The satellites provide high-speed worldwide internet access, particularly in underserved areas. By 2020, the satellite constellation was already the biggest on Earth and has continued to grow.

Can You Invest in Elon Musk’s SpaceX Stock?

SpaceX has yet to go public, so only big corporations, investment firms and high-net-worth individuals can invest in SpaceX privately for now. According to the U.S. Securities and Exchange Commission (SEC), you would need earned income over $200,000 annually or a net worth of over $1 million to become an accredited private investor. 

Until SpaceX lists publicly, you can get in on the action by buying shares in the companies that have invested in SpaceX. Alternatively, you can invest in the aerospace and defense sector. 

Ways to Invest in SpaceX Stock

Here are three ways to invest in SpaceX stock. 

Invest Indirectly

Invest indirectly in SpaceX by identifying publicly traded companies investing in SpaceX. These companies may benefit from SpaceX's success or contribute to its operations. Two companies are:

• Alphabet Inc. (NASDAQ: GOOGL): Google's investment in SpaceX is aimed at supporting SpaceX's satellite internet initiative, Starlink.
• Qualcomm Inc. (NASDAQ: QCOM): Qualcomm has collaborated with SpaceX to provide satellite-based communications technology for the Starlink network.

IPO Investing

SpaceX has not gone public yet, though Musk has said that SpaceX will go public in the future. When you invest in an initial public offering (IPO), you buy company shares as the company goes public and starts to trade on a stock exchange. Waiting for an IPO is your best chance of directly investing in SpaceX.

Here’s how to invest in an IPO:

• Open a brokerage account: Choose a reputable brokerage firm with access to IPOs that meet your investment needs.
• Complete the required paperwork: You may have to complete additional paperwork or meet eligibility criteria to participate. Your broker may require financial information, or there may be minimum investment requirements. 
• Express interest: Brokers use different methods for expressing interest in IPO participation. They may ask for online form completion or a dedicated IPO platform.
• Allocation and confirmation: If you receive a share allocation, your broker will let you know the share allocation and price. You must confirm the purchase and invest within a given period.
• Trading and holding: Shares will start trading on the stock exchange after the IPO. You can decide to hold the shares or trade them. The share prices are often volatile when the shares first start to trade. Consider your risk tolerance and investment goals before you make decisions.

IPO participation is competitive and not all are accessible to retail investors. The first IPO shares often go to institutional investors. 

Alternative Ways to Invest

SpaceX falls into the aerospace and defense sector. Consider investing in companies that fall into this broad category to profit from industry growth. Companies in this sector include:

• Boeing: A well-known aerospace company that designs, manufactures and sells commercial airplanes, defense systems and space-related technologies.
• Lockheed Martin: A global security and aerospace company in the research, design, development, manufacture and integration of advanced technology systems, products and services.
• General Dynamics: Involved in aerospace, combat systems, marine systems and information technology. General Dynamics supplies the defense, aerospace and intelligence communities.
• Raytheon Technologies: Producing advanced technology solutions for defense, aerospace, and cybersecurity.
• Northrop Grumman: A defense contractor specializing in areas like aerospace systems, defense electronics, autonomous systems and space technology.

Indirect SpaceX Investment May Be Better Than No Investment

Investors often hope to invest in SpaceX to profit from growth in the aerospace transportation or defense industry. Buying companies that are invested in SpaceX or other related investments may be possible instead. Although these investments are not direct, they offer an alternative to not having access to a SpaceX investment. This fact is especially true for investors reluctant to wait for the SpaceX IPO date and wondering how to buy SpaceX stock. 

Frequently Asked Questions