We offer expert-driven advice and resources to help you earn, save and grow your money. We did not receive compensation from any companies whose stock is mentioned in this report. No part of the writer’s compensation was, is, or will be directly or indirectly, related to the specific recommendations or views expressed in this article. You won’t get in at the low price offered by pre-IPO or IPO purchases, but it’s the simplest way to invest, and there’s still a substantial upside if the company succeeds. ☝️ Most IPOs allocate only a small number of shares for retail investors.
- At least some shares are being offered by employees of SpaceX, suggesting that shares may be coming onto the secondary market.
- Learn all about the 12 valuation ratios that allow investors to quickly estimate a business’s value relative to its …
- At its most recent funding round, SpaceX was valued at a stunning $137 billion.
- No part of the writer’s compensation was, is, or will be directly or indirectly, related to the specific recommendations or views expressed in this article.
- Furthermore, an investor may choose to invest in the space technology sector by investing in Exchange-Traded Funds (ETFs) and Mutual Funds (MFs) that hold stocks in the space sector.
SpaceX’s latest round of funding pushed the Company’s valuation to over $127 billion. Each week our editorial team keeps you up with the latest financial news, shares reading recommendations, and provides useful tips on how to make, save and grow your money. The extremely high capital cost and operational costs of SpaceX could put the Company at risk in a less liberal funding environment.
To use these platforms, you will have to register and open an account. You may need to meet a minimum level of income and investment experience to qualify, and there may be other criteria. There’s no guarantee that any marketplace will have SpaceX shares available.
Even if you qualify you may not be able to buy the number of shares you want. SpaceX completed a new round of private financing in July 2022, bringing the total to $2 billion in 2022. Their latest funding was raised on Aug 8, 2022, from a Secondary Market round. Anyone planning to buy SpaceX stock needs to be prepared to hold onto their investment for an extended period. Satellite launches compose the bulk of SpaceX revenue and are expected to bring in $1.6 billion in sales in 2021.
Create your Wallet
⚠️ Many IPO purchases come with a lock-up period, usually 90 or 180 days. You will not be able to sell your shares until this period expires. If you can’t find pre-IPO shares for sale, you might consider investing in the IPO itself. Your entry price will be higher, but you’ll have a reasonable assurance that you’ll be able to sell your shares if you want to. SpaceX is currently the most valuable venture-backed private company in the US.
First, you will need to identify if any of the existing investor shares are currently up for sale. You can do so by registering with reputable brokers that specialize in connecting potential investors with private equity company insiders. SpaceX designs, manufactures and launches advanced rockets and spacecraft.
Invest Through a Pre-IPO Secondary Market
A company that can attract financing on those terms is under no pressure to stage an IPO. At least some shares are being offered by employees of SpaceX, suggesting that shares may be coming onto the secondary market. Their investment in SpaceX forms a very small portion of their business, and hence, an investor must do an in-depth study of the company before buying the stocks. SpaceX is jointly owned by Musk, private equity companies, venture capital firms, a few public companies, and angel investors. At its most recent funding round, SpaceX was valued at a stunning $137 billion. Billionaire Elon Musk founded Space Exploration Technologies Corp., also known as SpaceX, which is one of the most highly valued private space exploration companies to date.
There is a secondary market for pre-IPO shares, and it is sometimes possible to purchase them. Online pre-IPO marketplaces may acquire shares from early investors or employees who have received shares through stock options. If market conditions remain strong, SpaceX could choose to hold an IPO within the next year or two. They could also spin off Starlink in an independent IPO, or they could simply carry on as a private company.
If markets sink or the economy becomes less vigorous financing could be harder to obtain. SpaceX is in a risky and highly speculative business that requires enormous amounts of capital. An accident could have a serious impact on the Company’s viability, especially on a manned mission. �� For a point of comparison, Tesla shares at the IPO were priced at $17. The shares closed at $23.89 on their first day of public trading.
Starlink entered beta testing in mid-2021 and could produce significant revenue in 2022. SpaceX has launched 1,740 Starlink satellites and the system will eventually deploy as many as 40,000 satellites. A unique next generation innovative wallet is set to be delivered by SpaceXCoin developers in Phase 4. Wallet X which will have multifactor authentication features for maximum security of its users. It is also in a business that has very high operating costs and requires huge amounts of capital.
Every investor wants to own a share of the billion-dollar company, but its closely held structure (private company), makes it difficult to invest in. Below, we discuss a few methods through which an investor can be a part of the rapidly-growing space exploration company. Investors willing to buy shares from the aerospace and defense sector may buy stocks of other listed companies from the sector. You can buy SpaceX shares once you’ve completed the necessary paperwork and funding. Furthermore, an investor may choose to invest in the space technology sector by investing in Exchange-Traded Funds (ETFs) and Mutual Funds (MFs) that hold stocks in the space sector.
Total Maximum Supply
CEO Musk has stated that Starlink will hold an IPO once the Company can predict its cash flow. Vertigo Studio SA is not responsible and cannot be held liable for any investment decision made by you. Before using any article’s information to make an investment decision, you should seek the advice of a qualified and registered securities professional and undertake your own due diligence. The views about companies, their securities and funds expressed in this article reflect the personal opinions of the individual writer. They do not represent the opinions of Vertigo Studio SA (publishers of FinMasters) on whether to buy, sell or hold shares of any particular stock. None of the writers or contributors of FinMasters are registered investment advisors, brokers/dealers, securities brokers, or financial planners.
- Even if you qualify you may not be able to buy the number of shares you want.
- The company makes money by launching satellites and through its Starlink satellite internet program.
- If market conditions remain strong, SpaceX could choose to hold an IPO within the next year or two.
SpaceX has no plans of going public currently, as the Musk-led company is easily able to raise capital from private investors. However, if and when SpaceX decides to go public, an investor must be ready. SpaceXCoin will be creating an ecosystem with many utilities which could come together to make a strong platform for BlockchainX and SpaceXMetaverse. SpaceX is a highly speculative investment with substantial risks. There’s no way to anticipate when an IPO will be held, so your funds could be tied up for some time. Several major brokers allow account holders to participate in IPOs.
The company was founded in 2002 to revolutionize space technology. The company makes money by launching satellites and through its Starlink satellite internet program. Unlike many private companies, SpaceX does not need to hold an IPO. The Company has shown a very high ability to attract private capital and seems able to finance its programs indefinitely without going public. Some investors report that Musk has told them not to expect a return for 15 years.
You will have to answer questions to confirm that you comply with the rules on IPO investment. An investor can also gain exposure to SpaceX’s business by buying shares in companies that are its suppliers or partners. Read our guide on pre-IPO investing for more information on how pre-IPO stocks work and the potential risks and rewards that they present. The most conservative way to buy SpaceX stock would be to wait for the IPO and buy the shares on the public post-IPO market.
To date, SpaceX has launched 208 space flights, successfully conducted 170 landings, and undertaken 143 re-flights with its first-of-its-kind reusable rockets. SpaceX is well known for its grand plans to fly to the moon and to Mars and its fully reusable spaceship project, but it also has two working businesses.
This article is being provided for informational and educational purposes only and on the condition that it will not form a primary basis for any investment decision. SpaceX is still privately held, meaning its shares are not available on the stock market yet. There are ways to purchase pre-IPO stock, but success is not guaranteed and there may be qualifying requirements. But if you’re willing to do some digging, you might be able to purchase SpaceX stock before the company’s IPO.
Established in 2002, SpaceX was formed with the mission of sending people to Mars and other destinations in the solar system. While that dream has yet to be fully realized, the company is conducting several other worthy operations. An IPO may be postponed if market conditions are not appropriate. Private equity players typically exit an investment through an IPO. Once the private investors are fully assured of the best valuation a company has reached, they exit their stakes in a public equity offering at sky-high valuations.