© Copyright 2021 Market Realist. More on that later), why doesn’t Elon Musk trade the company publicly? Buying Alphabet stock in order to own SpaceX stock might even be a smart financial move. Consider: Last … Fidelity also participated in a 2020 SpaceX investment round that raised about $2.0 billion for the space venture. For investors keen to get in on the space transportation business, here is some bad news. Anyone outside SpaceX who says they know how SpaceX makes money, including financial ‘experts’ and ‘stock market moguls’ (you know the ones I’m talking about) are basically lying: figuring out how SpaceX makes money, let alone how much money they’re making and where it goes, is all a complete exercise in guesswork. If you open the Robinhood or Webull app and search for SpaceX stock or SpaceX stock price, the search won't find anything. In 2008, Founder’s Fund, a San Francisco venture capital firm invested $29,000,000, a move that has since benefited the investors’ team. At the time of its inception and launch, SpaceX was primarily concerned with all things Mars, from research and flybys to colonization and terraforming. The short answer I give is: you can’t. Also, if you own stock in Alphabet you have a small amount of ownership in SpaceX as Google Ventures, its investment arm, invested $1 billion in the company in 2015. It was founded in 2002 by Elon Musk with the goal of reducing space transportation costs to enable the colonization of Mars. In contrast, SpaceX’s biggest competitors, Lockheed Martin and Boeing, have stocks that have a price-to-sales ratio of around 1.5 to 0.9, respectively. who want to keep this dream of traveling the cosmos and colonizing other planets a reality? So, if (and it’s a big if), SpaceX were to do an IPO, it’s looking at a stock price-to-sales ratio of around 9.2. These platforms may be an option for investors shopping for SpaceX stock. The only way to invest in SpaceX stock is through Alphabet stocks. Therefore, investors shopping for SpaceX stock can gain exposure to the space company indirectly through Fidelity mutual funds. Besides Fidelity and Alphabet, other SpaceX investors include Peter Thiel’s Founders Fund, Valor Equity Partners, and Baillie Gifford. The company was founded in 2002 to revolutionize space technology, with the … SpaceX has raised a total of $7.5B in funding over 37 rounds. You won’t find a SpaceX ticker symbol or stock price featured on your favorite broker’s list of stocks available to trade. Alphabet owned an estimated 7.5 percent of SpaceX stock following its joint investment with Fidelity in the space company in 2015. SpaceX has been described as the most popular pre-IPO tech company in the world. With a list of backers like this, it’s understandable that many retail investors are itching to buy the stock once the IPO occurs. And it achieved all of that while remaining a private firm with close to zero outside investors, so how does it maintain operations? So until then, how does SpaceX make money? The Potential of an IPO. In this video, I explain how to invest in SpaceX right now and when it’s expected become a public company. The company creates and launches modern rockets and spacecrafts. Led by Elon Musk, SpaceX is perhaps most well known for its reusable rockets. So, to minimize costs and keep SpaceX as private as possible, Elon Musk did something that people didn’t think was possible for an aerospace firm: he did it himself. Honest (HNST) IPO Stock Is a Good Bet for Growth Investors, There's Still Time to Buy BioNTech (BNTX) Stock, How to Fix the Not Enough Buying Power Error on Robinhood. In the almost 2 decades since its inception and launch, SpaceX became one of the rare “unicorn” stocks in the market. In this article, which was published on dollarcents.org, Elon Musk is quoted as saying he’ll issue an IPO after there is a colony on Mars. The ability to reuse rockets is paramount to the future accessibility of space. Right now, Musk seems reluctant to take SpaceX public. . And as an investor in Alphabet, you get a piece of a bonus, Google, YouTube, the Android operating system, and a self-driving car project. Elon Musk wants to reach Mars so … How to Buy SpaceX Stock. There you have it! You can forget about investing in SpaceX stock directly if your fortune is less than $1.0 million or you don’t earn more than $200,000 annually. Buying shares in private companies isn’t as straightforward as investing in publicly traded companies. Michael Sheetz Sat, Apr 24th 2021. Therefore, it is now possible to invest in SpaceX stock by investing in its part-owner, Alphabet. Valued at over $730 billion, Alphabet is one of the most dominant companies in the tech industry; investing in them isn’t just a good way to part-own SpaceX stock, it’s also an extremely smart financial investment, especially considering that, while tempting, SpaceX stock is neither cash-flow positive nor profitable (considering that it seems to reinvest all or at least a plenary majority of its profits back into operations and research). After all, it’s one of the most popular corporate websites among private companies (according to competitive intelligence tools), with more people looking into SpaceX and how to buy SpaceX stock more than any other unicorn companies out there. But before you accuse Elon Musk of being a greedy billionaire, know that the reason he doesn’t want to put SpaceX in the stock market is because he’s afraid of investors using it to profit rather than going to Mars. Do the math, and you’ll see that SpaceX is earning more than its fair share, and while we’re not exactly sure how SpaceX spends that money, we can see a majority of it going into operations and research. My hope is *all* current investors remain with Tesla even if we’re private. Will Elon Musk’s SpaceX Stock Go Public? Valued at $735.8 billion today, Alphabet reported net income of $12.7 billion over the past 12 months, despite taking a big hit from tax reform. There aren’t a lot of unicorn companies out there, and even more rare are stocks for these mythical corporations. But despite the shortage, people are desperate to get their hands at some sweet, sweet SpaceX stock. SpaceX used what little funding it had to building its own rockets, using the most advanced production methods available to make the entire production process as efficient as possible, thus driving down costs and maximizing their capital potential. Invest in Google’s parent company – Alphabet. But just in case SpaceX is still losing money, diversifying one’s investment in SpaceX by also owning wildly profitable Alphabet stock is a smarter way to own a piece of SpaceX. You can buy mutual funds through investment apps that offer them alongside other securities. Is Arrival Stock Better Than Lucid Motors Stock? SpaceX is a revolutionary rocket and spacecraft manufacturer. Their latest funding was raised on Apr 14, 2021 from a Venture - Series Unknown round. SpaceX is only one of the tech shared owned by a leading listed investment trust – learn more about it. Profit from growing valuation of a company. Participate along with the best investors on the planet. With that in mind, we can make a guess and put a number on SpaceX’s annual revenue at around $1.3 billion a year. The mega-corporation has invested about $1 billion into SpaceX and is now a partial owner of the space venture company. Thiel and Fidelity also invested in Facebook while it was still a private company. But don’t expect to make money off of Musk’s Mars company, at least, not yet. SpaceX boasts several historic milestones like being the only private company able to return a spacecraft from Earth’s low orbit. Finally, platforms like Forge Global and EquityZen enable investors to purchase pre-IPO stocks from insiders like employees who receive a stock award as part of their compensation. A better way to invest in SpaceX stock -- and also the only way. Some funds charge a load fee when you buy or sell their shares. If you have been thinking about investing in the stock, you aren't alone. In March 2017, SpaceX became the first company in the world to reuse a rocket that is sent to space. But if you’ve been living under a rock this past decade or so, let’s take a brief look at what SpaceX is: SpaceX is the brainchild of eccentric billionaire, genius, philanthropist Elon Musk. Simply put, you can’t: it’s a private company, and until we have full-time colonists and a fully operational society in Mars, Elon isn’t selling. We did say ‘close to zero’ outside investors; back in January of 2015, investment firm Fidelity and your favorite search engine/internet giant Google joined forces and injected $1 billion into SpaceX in exchange for a relatively sizable 8.33% of the company, pushing SpaceX’s evaluation to $12 billion in that same year. From individuals like you to private equity firms and sovereign wealth funds, many investors are interested in SpaceX stock. Yes, the same Elon Musk that founded Tesla, PayPal, The Boring Company, and many other high-tech industry leading firms. By Praveen Nagaraj. With the net income of $12.7 billion, and valued at $735.8 billion, Alphabet may even be the smarter investment than SpaceX. You Can't Buy SpaceX Stock Right Now, but Here's How You Can Invest in Space Today As NASA likes to say, space is hard. SpaceX’s valuation has soared from $10 billion at the time of Alphabet’s investment to $46 billion after the 2020 funding round, which means that Alphabet’s holding has appreciated. SpaceX Starlink IPO: The pros and cons of investing in a Starlink public company. Well, it’s for a simple and pretty altruistic reason: he wants the company’s mission to be well above profit. Would create special purpose fund enabling anyone to stay with Tesla. SpaceX is an American aerospace manufacturer and space transportation services company headquartered in Hawthorne, California. But that doesn’t mean he’ll never make it public: Musk is open to an IPO for SpaceX, but only when SpaceX’s Mars colony flights are completely operational. You can’t buy the stock through your regular broker because SpaceX is currently a private company. An individual wanting to invest in SpaceX has limited options if they aren't an accredited investor. Financial services provider Fidelity Investments and Google parent Alphabet are the two notable entities that have invested in SpaceX. From what we can gather, SpaceX makes most of its money from satellite launches: as of 2019, SpaceX charges commercial customers up to $62 million per satellite launch using its proprietary reusable Falcon 9 rockets, while complicated government projects, like launching a GPS satellites network for the U.S. military, setting up a satellite system for NOAA, or resupplying the International Space Station, can cost up to $100 million per launch. SpaceX is another hot company for space investors to salivate over. participated in a 2020 SpaceX investment round. Investing in SpaceX with Baillie Gifford US Growth Trust People who start with nothing and manage to accumulate large sums of wealth usually share a few common characteristics. Tailgating Tips: How To Host A Winning Tailgate Party, ‘Neither Snow nor Rain’, or Why the USPS Delivers on a Saturday, SpaceX became one of the rare “unicorn” stocks, From A to Z: Deconstructing Amazon’s Slogan, Chasing That Dollar Sign: How to Fill Out a Chase Bank Money Order, 3 Ways to Earn from Passive Income Streams, Reasons to Outsource Your Bookkeeping Services. SpaceX has a post-money valuation in the range of $10B+ as of Feb 17, 2021, according to PrivCo. The only way to invest in SpaceX is to invest indirectly. It turns out, there’s a way to invest in SpaceX stock, but it’s not the way you think. How do you invest in SpaceX stock? Private investment in space companies hit $1.9 billion in the first quarter, according to a report on Wednesday by New York-based firm Space Capital. Also, SpaceX’s Dragon became the world’s first commercial spacecraft to transport cargo to the International Space Station and back. Unicorn companies are privately held startup companies that are valued at over $1 billion. SpaceX has been a private company since it was founded. Unicorn companies are privately held startup companies that are valued at over $1 billion. This could make it possible to invest in SpaceX today. Register now. Investing in space isn't much easier. SpaceX aims to be the first private company to transport humans into space. Sure, his reason for shunning outside investments is pretty noble, but what about the thousands, if not hundreds of thousands, of honest-to-goodness space geeks (like myself!) SpaceX was his foray into the aerospace industry, launching the company way back in 2002. SpaceX developed its first orbital launch vehicle, the Falcon 1, with private funding. The Falcon 1 was an expendable two-stage-to-orbit small-lift launch vehicle.The total development cost of Falcon 1 was approximately US$90 million.. Offers may be subject to change without notice. There’s a Workaround. They don’t talk about how much money they have, they understand the notion of value for money, and they realize that most financial “advice” that’s given by mainstream pundits is a bunch of malarkey. It makes sense, but again, what about honest-to-goodness geeks who just want to help make his dream become reality (and turn a healthy profit along the way)? Why invest in SpaceX Pre-IPO shares? So while the contracts and the Google/Fidelity money are enough to keep operations going (and maybe turn a bit of profit? Elon wants to keep SpaceX a private firm until it achieves its mission, end of story. Help the coolest company on earth. By investing in Google’s parent company Alphabet (NASDAQ:GOOGL), you’re investing in a (small) part-owner of SpaceX (and, by extension, a lot of Google services, the Android OS, and a bunch of other cool Google projects). While you can start investing in publicly traded stocks with as little as $1.0 thanks to commission-free online brokers like Robinhood, SoFi Invest, and Cash App Investing, it’s a different story when it comes to private companies. SpaceX designs, manufactures and launches advanced rockets and spacecraft. Acquire shares that are hard to get. It turns out, there’s a way to invest in SpaceX stock, but it’s not the way you think. From just a handful of engineers, SpaceX now has more than 4,000 employees, a headquarters in Florida, rocket development facilities, several launch facilities, and multiple offices across the country. Remember how we mentioned that Google and Fidelity own 8.33% of SpaceX. SpaceX Stock Price: How Much Is It Now? This space exploration venture does not offer direct buy-in options for persons who wish to invest in it. Investors can gain exposure to SpaceX directly through Alphabet stock. Amazon CEO Jeff Bezos is working on a similar program through his company Blue Origin, which makes Bezos and Musk bitter rivals. Some of its early goals sounded both lofty and sci-fi, but in the almost 2 decades since, it’s inched ever closer to those goals. Space Exploration Technologies - aka SpaceX - designs, manufactures, and launches advanced rockets and spacecraft. Fidelity runs a portfolio of funds that invest in public and private stocks. All Rights Reserved. The stock market system, and indeed our entire modern venture capitalist infrastructure, has ways around an eccentric billionaire’s strange caveat of keeping one of the most technologically advanced aerospace/commercial space travel/future space colonist company private. Information about SpaceX found online is gathered from publicly available sources and is not necessarily verified by endorsed sponsors. The investment gave Fidelity and Alphabet a combined stake of about 10 percent in SpaceX stock. However, up until now, the only way for stockholders to invest in SpaceX was tangentially — through sister company Tesla. Two SpaceX crew spacecraft are docked to the space station, as Crew-2 arrives. Fidelity has made several investment rounds in SpaceX. In theory, owning a piece of Alphabet will also mean owning a piece of SpaceX stock. Well, there is one way to own SpaceX stock, and that’s through Google. SpaceX was founded by Elon Musk in 2002 and upended the rocket industry by successfully introducing and implementing the application of reusable rockets. Already do this with Fidelity’s SpaceX investment. February 6, 2020 . Fidelity runs a portfolio of funds that invest in public and private stocks. It’s a dream so close to Musk’s heart that SpaceX is careful to only accept funding from investors with a long-term view. Since 2010, SpaceX has completed over 75 missions, with this year’s scheduled launches pushing those numbers up by another 20. Market Realist is a registered trademark. SpaceX, founded by serial entrepreneur Elon Musk, was the first private company to send a resupply craft to the International Space Station (ISS), a feat it achieved in 2012. Which isn’t to say we can’t make educated guesses. @JeffBezos is a copy haha https://t.co/plR7uupqBG. For ordinary investors, the viable route to getting exposure to SpaceX as an investment is through a fund or publicly traded company that owns SpaceX shares. So there you have it, if you want to invest in SpaceX stock, invest in its 8%-part-owner, Alphabet. One way you could invest in SpaceX’s success is to buy shares in companies like Inmarsat, Hughes Communication and Eutelsat who will profit from SpaceX successfully lowering the price of spaceflight. The president of SpaceX, Gwynne Shotwell, made comments at a private investor event at Miami regarding a new direction for Starlink, Bloomberg reported. Musk tells Aeon in 2013, “I just don’t want [SpaceX] to be controlled by some private equity firm that would milk it for near-term revenue”. When investing in mutual funds, you should be aware of the costs as the expense ratio usually applies to fund investments. Asas Capital and Republic Labs are the most recent investors. The company is focused on developing and launching advanced rockets and spacecraft. However, thanks to the magic of the stock market, there are other ways to buy a piece of the SpaceX pie. In the almost 2 decades since its inception and launch, SpaceX became one of the rare “unicorn” stocks in the market. You see, back then, the company tried to hire Russian companies to build rockets for them. Fidelity’s earliest reported investment in SpaceX came in 2015 when it joined with Alphabet to inject about $1.0 billion in the business. Not bad for a private company; heck, it’s doing better than a lot of publicly traded companies out there. Investing in SpaceX seems like a good way to diversify your portfolio, right?. So, in theory, by investing in Google you secure your investment in SpaceX. Space Exploration Technologies Corp., or SpaceX, is an American space travel company run by Tesla CEO Elon Musk. SpaceX is a privately owned company and only chosen investors own equity. How To Invest In SpaceX Stock. Thanks to Google’s substantial investment in SpaceX, Google’s parent Alphabet now owns a 7.5% stake in SpaceX. At the right price, buying Alphabet stock in order to own SpaceX stock might even be … Also, you need to be sophisticated, which means you have professional knowledge and experience, to qualify as an accredited investor. In just a few years, SpaceX became this weird, sci-fi delusion of a rich nerd to one of the world’s most advanced private space faring companies. Watch SpaceX in action. As an investor, one of the most common questions I get from my tech-forward and progressive investor friends is, ‘how do I invest in SpaceX stock?’. But, that’s not to say that it’ll remain so, as continued investment will likely be crucial if SpaceX is to continue leading the field in space exploration. In the past decade alone, SpaceX accomplished multiple firsts: it was the first private company to put a space faring vehicle into Earth’s orbit, the first to launch a payload into orbit and then successfully land its rocket back to Earth (something NASA has struggled with for decades), first to land its Falcon 9 rocket on a sea-based landing pad (something NASA hasn’t even tried to do), first to re-launch used rockets, and the first company to propose an actual, working strategy for colonizing the Red Planet. The American companies weren’t being too helpful either; albeit slightly cheaper than their Russian counterparts, the Yankees were asking for equity shares of SpaceX, something Elon Musk found just as bad. Because SpaceX is not a publicly-listed company, you cannot buy shares of the company or invest in SpaceX directly. People may receive compensation for some links to products and services on this website. A better way to invest in SpaceX stock -- and also the only way. But beyond generous contributions like this, SpaceX makes most of its money from private contracts for all different kinds of spaceflight and aerospace related services, from launching satellites for sovereign nations (like the HISPASAT and the Arabsat 6A), to helping out NASA with resupply missions to the International Space Station. SpaceX became a leader in aerospace industry for one, simple reason: it did most of what it wanted to do on its own. You have to be an accredited investor to be able to participate in the private investing market. However, Elon Musk balked at the price, saying that the Ruskies were being impractical with their pricing. That’s actually a difficult question to answer, mostly because SpaceX is a private company, which means that the SEC doesn’t require it to divulge its financial details. SpaceX is funded by 38 investors. Started in 2002 and based in Hawthorne, Calif., SpaceX is on a mission to cut space travel costs in order to facilitate the colonization of Mars. It’s unclear whether subsequent funding rounds have diluted Alphabet’s SpaceX holding.