SpaceX has gained worldwide attention for a series of historic milestones. It is the only private company capable of returning a spacecraft from low Earth orbit. It is therefore expected that investors are becoming more and more interested in how to purchase SpaceX stock.
SpaceX is one of the most valuable companies in the world and one of the most popular pre-IPO tech companies globally.
But is it possible to buy SpaceX stock? If so, what options do investors have? In this blog post, we will talk about SpaceX and how investors can purchase SpaceX stock.
What Is SpaceX?
SpaceX designs, manufactures and launches advanced rockets and spacecrafts into… yes you guessed it… space. 🚀
The company was founded in 2002 to revolutionize space technology and it has one of the most ambitious goals in the industry: enabling people to live on other planets.
It is one of the world’s fastest-growing launch services providers, and it already secured over 100 missions, representing over $12 billion on contract. These include commercial satellite launches as well as US government missions. SpaceX has developed 3 launch vehicles, and it employs 9,500 people in its development, manufacturing, and launch facilities.
It competes with Blue Origin (founded by Amazon billionaire Jeff Bezos), United Launch Alliance (formed by aerospace giants Boeing and Lockheed Martin), Virgin Orbit (created by Richard Bronson of Virgin brand fame), and other mostly government-operated agencies like CNSA and NASA.
What Are SpaceX’s Highlights?
Here are some of the highlights achieved by SpaceX so far:
- In 2010, SpaceX returned a spacecraft from low Earth orbit;
- SpaceX’s Dragon spacecraft became the first commercial spacecraft to deliver cargo to and from the International Space Station in 2012;
- In 2017, SpaceX successfully achieved the historic first flight of an orbital class rocket, and the company now regularly launches flight-proven rockets. The ability to reuse rockets is paramount to the future accessibility of space. Otherwise, the costs will become prohibitively expensive;
- SpaceX began launching Falcon Heavy, the world’s most powerful operational rocket by a factor of two, in 2018;
- Elon Musk unveiled SpaceX’s new Starship plans for private trips to the Moon, Mars, and beyond. The new version of Starship (and its Super Heavy booster) will carry up to 100 people to the moon, Mars, or other destinations in space or around Earth, Elon Musk said. It will stand 387 feet (118 meters) tall and be completely reusable, with quick turnarounds;
- There is an unlimited amount of funding that SpaceX could probably access globally in private markets;
- SpaceX has been awarded a contract by NASA to develop lunar landers that astronauts can use to land on the moon.
- In May 2020, SpaceX successfully sent two astronauts into orbit, and their Dragon capsule docked with International Space Station (ISS). It was the first time in history that a private company sent humans into orbit.
SpaceX Buys an Entire Village – Boca Chica
In Summer 2012, SpaceX started looking into expanding its rocket-launching business outside Florida. At that time, its Falcon 9 rocket had only flown a handful of times, but with a rapidly increasing launch schedule, an additional launch site was required to meet the needs of SpaceX.
SpaceX bought an entire village called Boca Chica in Texas to build its own private spaceport. Boca Chica had no infrastructure and no skilled workforce nearby, so why did SpaceX consider such a remote location? There are several reasons for Boca Chica to be a perfect place to launch and land rockets:
- The abundance of cheap land.
- Nearby access to the sea.
- Low population density – only 35 houses.
- The state of Texas offered $15million as an incentive for the spaceport to be built in Texas.
After testing the launch and landing of Starhoper, SpaceX concluded people living in Boca Chica would need to be relocated so that human lives weren’t at risk in the future when launching and landing rockets. SpaceX offered three times the property market value to each property owner in Boca Chica. Many accepted, but many rejected, as Boca Chica was their dream place. Texas could cease the properties, but SpaceX would need to give the land over to the government for this to happen.
SpaceX continues negotiating with the property owners, and by March 2020, there were still 7 houses under negotiation.
How Can I Buy SpaceX Stock?
SpaceX is still privately held, meaning its shares are not available on the stock market yet. But are there other ways to purchase SpaceX stock? And how much can we expect to pay for each share of SpaceX?
The private funding SpaceX received so far pushes its valuation to $36 billion. With an estimated 160 million outstanding shares, its share price could be worth $220 in the private market.
Elon Musk, SpaceX’s CEO, is also reportedly raising another private round of funding to continue its Starship developments. To do so, he will be selling over 1 million of his own shares to raise an extra $250M.
Since many of its investors, including Google, NASA, and Bank of America, will want a significant return on investment, the company will likely go public with higher numbers.
But, there are other ways to invest in SpaceX pre-IPO. Take a look below for more information.
Are There Other Ways to Invest in SpaceX?
Since it’s not possible to buy SpaceX stock from the stock market, there are other possibilities for investors to invest in SpaceX pre-IPO.
Some platforms allow investors to invest in pre-IPO companies. Like EquityZen and Forge Global, such platforms enable existing stock option holders to sell their options to investors willing to meet their price demands.
Just keep in mind that picking stock on your own is not always a great idea, especially pre-IPO.
Are There Any Concerns About SpaceX?
SpaceX had a few accidents that had a negative financial impact and serious detrimental consequences in space. A tiny mistake in the space sector can result in a financial disaster or eventually have major consequences on our planet.
The Starlink project comes with its own set of concerns. The company launched its first batch of 60 internet satellites in May 2019 and hopes to finish the project in 2027. By then, the network could include up to 42,000 satellites, which worries many scientists. Satellites are too bright and could form a “mega constellation” that blots out the stars and interferes with the work of telescopes. If that happens, astronomers wouldn’t be able to observe the universe from Earth, potentially threatening the science of astronomy itself.
Sending many satellites into orbit also increases the risk of collisions. In the worst-case scenario, crashes could spiral into a catastrophe that cuts off our access to space.
As you can see, there are some ways to invest in private companies pre-IPO. Some ways are more difficult than others. But if you’re willing to do some digging, you might be able to purchase SpaceX stock before the company’s IPO.
If you want to stay up-to-date on when SpaceX goes public, sign up for our newsletter, and we will let you know!
SpaceX designs, manufactures and launches advanced rockets and spacecraft. The company was founded in 2002 to revolutionize space technology and it has one of the most ambitious goals in the industry: enabling people to live on other planets.
In 2010, SpaceX returns a spacecraft from low Earth orbit. Since then, many other milestones were hit, with the latest one being the new version of Starship, which is expected to carry people to the Moon, Mars and beyond.
SpaceX is still privately held, meaning its shares are not available on the stock market yet. But there are other ways to purchase SpaceX stock. .
SpaceX had a few accidents which had not only negative financial impact but also serious detrimental consequences in space. It is also launching a network of satellites that is raising concerns among the scientific community.
In Summer 2012, SpaceX started looking into expanding its rocket-launching business outside Florida. At that time, its Falcon 9 rocket had only flown a handful of times, but with a rapidly increasing launch schedule, an additional launch site was required to meet SpaceX needs. SpaceX bought Boca Chica in Texas and built its own private spaceport.
SpaceX bought an entire village called Boca Chica in Texas to build its own private spaceport. Boca Chica had no infrastructure and no skilled workforce nearby, so why did SpaceX consider such a remote location? There are a number of reasons for Boca Chica to be a perfect place to launch and land rockets:
– The abundance of cheap land
– Nearby access to the sea
– Low population density – only 35 houses
– The state of Texas offered $15million as an incentive for the spaceport to be built in Texas
SpaceX was founded in 2002 by Elon Musk who still has part ownership of the company with 54% equity and 78% voting control.