Introduction:
Could human beings, before a century, even imagine travelling to space? It must be a joke for them, right?
But look how far science has advanced that going to space is possible due to a talented man named Elon Musk, who invented SpaceX. This company is currently the talk of the town. Many people want to invest in SpaceX stock, but the question is how to buy SpaceX stock. I will cover all the critical aspects of SpaceX stock and how to invest in this directly and indirectly.
Let’s dig into it.
What is SpaceX?
Space Exploration Technologies Corp. (SpaceX) was established in 2002 with the mission of sending humans to mars. SpaceX has been doing many other worthy operations, such as:
- Manufacturing amazing rockets and innovative space vehicles( Falcon 9, Falcon Heavy, and Starship launch vehicles, several rocket engines, Cargo Dragon)
- The provision of global internet services (branded as Starlink) by launching satellites into orbit.
- Offering defense services to the United States government.
- Flying astronauts and people to space for joy and research
NASA is also a customer of SpaceX, making it more trustworthy for people. The company’s valuation is over $137 billion, making it the most valuable venture-capital-backed private company in the US.
SpaceX IPO
Investors are eagerly waiting for a long time for SpaceX IPO. But SpaceX is still a private company. Elon Musk feels no pressure to make it IPO because the company is doing good without going public. It is affiliated with private equity companies, venture capital firms, and angel investors. Hopefully, SpaceX IPO will take place soon.
How Can We Buy SpaceX Stock Directly?
Currently, purchasing SpaceX stocks directly is challenging and only available to limited entities. However, several alternative routes exist to attain an indirect ownership interest in the company. This requires delving into investment options for companies that aren’t publicly traded.
Exploring the available investment opportunities for privately-held firms may prove beneficial in gaining a stake. In addition, seeking advice from experienced investors or financial advisors can aid in identifying suitable investment channels for acquiring ownership in this innovative space exploration company.
How Can We Invest in SpaceX Indirectly?
There are several indirect investment options that can offer exposure to SpaceX’s growth potential. One such way is investing in Google stocks, as the company owns approximately 10% of SpaceX shares.
Investing in companies that are partners or suppliers to SpaceX is also another investment opportunity. Companies like Garmin Ltd and Iridium Communications are some of the companies that can be invested in.
Several ETFs invest in space technology companies, and investing in them can offer indirect investment in SpaceX. Some of these ETFs include:
- Procure Space ETF.
- Direxion Daily Aerospace & Defense Bull 3X Shares,
- ARK Space Exploration & Innovation ETF,
- iShares US Aerospace & Defense ETF,
Additionally, publicly-traded companies in the aerospace and defense sectors, such as:
- The Boeing Company
- Lockheed Martin Corporation
- Raytheon Technologies Corporation
- Howmet Aerospace Inc.
- Northrop Grumman Corporation
- HEICO Corporation
- Aerojet Rocketdyne Holdings, Inc.
- Astronics Corporation
- Virgin Galactic Holdings, Inc.
- AST SpaceMobile, Inc.
- Maxar Technologies Inc.
Institutional investors like Fidelity and Bank of America have also invested in SpaceX. Alphabet and Fidelity Investments invested $1 billion in SpaceX in 2015 at a roughly $12 billion valuation. Bank of America invested $250 million in SpaceX in November 2018, when the company was valued at $30 billion.
Investing in any of these companies can provide indirect investment exposure to SpaceX.
Reasons to invest
Emergen Research has published a report on the global space propulsion system market, stating that it was valued at $6.67 billion in 2020. The report also predicts that this market will experience a significant CAGR of 14.6% and reach $19.9 billion by 2028. CAGR measures an investment’s annual growth rate over a specified period and can serve as a valuable metric for long-term investment targets in SpaceX.
According to a survey by Morgan Stanley, SpaceX is expected to surpass Tesla in value, despite Tesla achieving a $1 trillion market cap in 2021. Investors are drawn to SpaceX’s reusable launch technology and its potential applications in various industries, such as communications and earth observation.
Pros and cons of Investing In SpaceX stock
Pros
- Valuation of the company is very high.
- The demand for space technologies is increasing with rocket speed.
Cons
- This company is not publicly listed yet.
Other Stocks Worth Investing
If you find it challenging to invest in SpaceX stock, you can invest in the space technology sector through publicly-traded companies. Here are some of the options:
- The Boeing Company
- Lockheed Martin Corporation
- Raytheon Technologies Corporation
- Howmet Aerospace Inc.
- Northrop Grumman Corporation
- HEICO Corporation
- Aerojet Rocketdyne Holdings, Inc.
- Astronics Corporation
- Virgin Galactic Holdings, Inc.
- AST SpaceMobile, Inc.
- Maxar Technologies Inc.
In addition to these, many other publicly-traded companies in the space technology sector offer investment opportunities.
Frequently Asked Questions
It does not have a stock symbol.
No, not right now, as SpaceX stock is a private company.
Enthusiasm for space travel is the main reason. In 2020, the May 30 Space Launch Live event became the No. 1 non-prime telecast for the Discovery Channel. It was also the highest-rated telecast for the Science Channel.
Yes, because its valuation is increasing day by day.
The best way to invest in SpaceX is through investing in Google.
In Conclusion
SpaceX is one of the innovative space technologies companies. Buying SpaceX stock is not possible directly. Although, you can invest in it indirectly. Still, investing in this company requires a lot of effort. That’s why You should also invest in other tech companies.
Investing in space technology companies like SpaceX is an excellent way to diversify your portfolio and gain exposure to a rapidly growing industry. However, it is essential to carefully research and consider all investment options before making any decisions.
