In this article, we will show you why you should buy the SpaceX stock now and add it to your portfolio basket in the future. Our aim is to you everything you need to know about SpaceX Stock and use our expert knowledge to guide your investment in SpaceX.
SpaceX was founded by Elon Musk in 2002 as an aerospace manufacturer that provides space transportation services. Musk launched SpaceX in order to reduce space transportation costs.
SpaceX has elicited great attention over the past two 20 years due to its founder’s audacious entrepreneurial goals. Analysts have valued the company at over $100 billion; making it possible for many investors to resort to asking how to buy SpaceX stock.
Following the moon landing exploration of 1969, a human mission to Mars appeared to be the next logical headway. SpaceX is an important technological advance towards this goal.
We understand that government investment targeting space exploration has waned since the end of the Cold War.
The Airspace governance annual budget made declined progressively over the years and this caused the price for space visitation out of reach. Elon Musk aims to start-up a privately funded space future journey powered by SpaceX.
SpaceX stock is future oriented stock which have performed well since the February-March 2020 market pullback.
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SpaceX is not yet publicly traded company, so details of its financing are private. Existing investors sold off enough stock recently, at $560 per share in an attempt to push up that SpaceX’s valuation to $100.3 billion.
What Is SpaceX Stock?
SpaceX still does of course have stakeholders. Founder Elon Musk, who also founded the popular electric vehicle manufacturer, Tesla, funded the SpaceX initially with funds from his sale of popular online payments platform PayPal.
Other equity firms, like Founders Fund and Valor Equity Partners, also have significant stake in SpaceX. Moreso, it is currently not a publicly traded company. That means you cannot buy SpaceX stock in the public market.
SpaceX raised a whopping $850 million in the first quarter of 2021 in addition to receipt of a total of $6 billion in offers from various investors. The company is looking forward to raising more capital as it focuses on two major projects in the coming years. That is, the Starship and the Starlink.
Starship is a class of next-generation recyclable vehicles being developed for the purpose of Mars exploration and designed to outperform the Saturn-V rockets that cconveyed American astronauts to the Moon.
Starlink is a satellite internet collection already made up of thousands of units. SpaceX has already started to use this network to provide high-speed internet to customers. By the second quarter of 2019, the constellation consisted of more than 1,600 Starlink satellites.
You must therefore be very wealthy or you must have a large stake in a company that has investment connection with SpaceX before you may be able to own the SpaceX stock until it goes public.
When Will SpaceX Stock Go Public?
Elon Musk has made it very clear that SpaceX will not go public in the near future. Musk has stated that short-term demands of shareholders could ruin the company’s chance of occupying Mars which is the long-term objective of SpaceX.
We hope that once the SpaceX core objective is achieved Musk may consider going public.
This was the position adopted by Musk and communicated to SpaceX employees in a now leaked email that answered why Musk had not taken the company public.
He says: “I am increasingly concerned about SpaceX going public before the Mars transport system is in place. Creating the technology needed to establish life on Mars is and always has been the fundamental goal of SpaceX. If being a public company diminishes that likelihood, then we should not do so until Mars is secure”.
In the years ahead, there is likelihood you could buy stock of the subsidiary firms of SpaceX such as Starlink, though this will take a long time.
Ways You Can Buy SpaceX Now?
A series of research by analysts have identified four ways through which SpaceX stock can be bought before the IPO.
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Invest privately
This approach is based on personal contact with someone who has direct link to the company. The major issue with this is that you have to be an accredited investor.
Another criterion is that you must have a net worth of over a million dollars either alone or together with a spouse, the value of your primary residence not inclusive.
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Scottish Mortgage Investment Trust
This is an indirect way of buying SpaceX assets which is possible only if you invest in Bayley Gifford’s Scottish Mortgage Investment Trust (SMT) on the London exchange.
The info available in the Trust website will aid your buying SpaceX when the price is low so you may gain some profit in future.
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Investing In Alphabet
Investing on Google or Alphabet asset is another way of dealing with the SpaceX company indirectly. We know that google had invested in the SpaceX and now own 7.5 percent of the company. You can buy the SpaceX by buying the Google stock that is linked to the SpaceX assets.
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Invest Into Ark Space Etf
This initiative was introduced by Kathy Wood of Arkhamvest which seeks to provide information for investors with insights about companies involved in space-related enterprises such as reusable rockets, drones, orbital and sub-orbital aircraft.
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With the apparent relationship between Musk and Kathy Wood, there might be some talk about the Starlink IPO. However, Kathy Wood had indicated that she would love to retail traders to access private companies early, maybe as a loophole to buy SpaceX raised assets. Thus, this arrangement can help you buy SpaceX stock.
How Much Is SpaceX Worth?
SpaceX became the second-most valuable private company in October 2021 when its valuation headed to the sky at above $100 billion representing a 33% rise from its February 2021 valuation of $74 billion.
SpaceX is amassing cash as it continues to launch rockets, complete missions, and pursue its satellite internet service, Starlink. It will be correct to say that the SpaceX is worth about $160 billion through 2022.
How To Buy SpaceX Stock
SpaceX is considered by analysts as having the potential of hugely profitable company because of its commitment to reusable rockets.
SpaceX not only aims at exploring the international space station, but it also aims to possessing Mars and having it as a second territory for human occupation.
To buy SpaceX now you will adopt the following six measures:
i. Trading in space ETFs or funds
ii. Trading in publicly listed space companies
iii. Taking a position when SpaceX goes public
iv. Pick and shovel trading
v. Opening a position on SpaceX’s investors
vi. Trading in Elon Musk’s other companies
You may still buy the SpaceX stock through a secondary market for pre-IPO shares. Online pre-IPO marketplaces may acquire shares from early investors or employees who have received shares through stock options.
You may be able to buy SpaceX shares through the following secondary marketplaces.
Forge Global/Sharespost:
This is the product of a merger between two major pre-IPO marketplaces. The minimum investment is $100,000. Some shares may have higher minimums. Potential buyers may need to pass a qualification screening before his investment is allowed.
EquityZen
This acquires pre-IPO shares from early investors and employees and makes them available to qualified investors. There will be a qualification process and the minimum investment is $10,000, potentially higher for some shares.
SecFi
This specializes in linking outside investors with employees who need to liquidate their stock options. You buy from the holder who wants the monetary equivalent.
Before you can use these platforms, you will have to register and open an account with them. The account is a link between you and the platform through which transactions on the SpaceX assets can be facilitated.
You may need to meet certain criteria including minimum level of income and investment experience to qualify as investor. There’s no guarantee that any marketplace will have SpaceX shares available since it hasn’t gone public.
