In this article, we will dive into SpaceX’s journey as a private company, the SpaceX stock price chart, how to buy SpaceX stock, and whether there are any SpaceX alternatives.
What was once a distant fantasy for sci-fi fanatics, is now firmly within our reach. Join me, as we review the companies bringing space exploration closer to reality than ever before.
What is SpaceX?
Officially known as Space Exploration Technologies Corporation, SpaceX is an aerospace manufacturer with expertise in the space technology sector.
It was founded in 2002 by Elon Musk, the CEO of Tesla, with the goal of offering more affordable launch services than its competitors.
As a private company, SpaceX has undertaken grand ambitions, including taking astronauts to the international space station and sending satellites into orbit. To date, they have launched 208 space flights, including many with their reusable rockets.
However, manned flights to Mars is the ultimate dream of SpaceX and the one that really catches headlines.
How to Buy SpaceX Stock
Unfortunately, because SpaceX is a private company, you can’t invest in SpaceX stock right now.
Up until this point, Elon Musk has expressed concerns about taking the SpaceX stock public too soon, as doing so hastily might conflict with the company’s objectives.
Ultimately, the decision to make SpaceX a publicly traded company depends on investors’ pressure, financing needs, and long-term goals.
Interestingly, another company with close connections to Elon Musk is in exactly the same position. For those interested, I have written a separate article about this titled Can You Invest in OpenAI Stock?
If and when Elon Musk’s SpaceX decides to pursue an IPO, investors will be able to purchase shares through their broker.
SpaceX Stock Price Chart
Because SpaceX doesn’t trade on the stock market, it doesn’t have a live stock chart.
However, its most recent funding round in January 2023 raised $750m, which valued the company at $137bn. This followed a Bloomberg report that claimed SpaceX was allowing insiders to sell their shares for $77.
Prior to this, there were two separate funding rounds in May and July of 2022 that valued the company at $127bn – equating to a share price of $70.
And in October 2021, a private shareholder was reported to have sold shares at $560. However, this was before a 10-for-1 stock split in February 2022. Therefore, the shares were worth $56 adjusted for stock splits.
How to Invest in SpaceX Stock Indirectly
While you can’t buy SpaceX stock directly, there are ways that you can invest indirectly.
For example, there are a few public companies that have built a stake in SpaceX over the years:
- Alphabet: In 2015, Google and Fidelity collectively invested $1bn in SpaceX for 10% of the company. At this time, SpaceX was worth $12bn. Given SpaceX is worth more than 10 times this today, Google’s stake is now worth over $10bn.
- Bank of America: In November 2018, Bank of America invested $250m in SpaceX, at a valuation of $30bn. Given SpaceX is worth more than 4 times this today, Bank of America’s stake is worth over $1bn now.
Remember, if you buy either of these companies, you are buying far more than their stake in SpaceX. These are multi-national businesses with multiple revenue streams that can affect the stock price. So make sure you research the whole business before investing.
Outside of these two companies, the options to invest in SpaceX are relatively limited. Unfortunately, the rest of SpaceX’s investor base are private equity funds and angel investors.
Alternatives to SpaceX
While SpaceX isn’t publicly traded currently, there are a few alternatives in the space sector that you can invest in.
Here are a few prominent SpaceX alternatives:
Virgin Galactic Holdings
Virgin Galactic, founded by Sir Richard Branson, is one alternative to SpaceX in the space sector.
It offers suborbital flights to daring individuals, allowing them to view space and Earth from a whole new perspective.
Following their first commercial flights in 2020, Virgin Galactic intended to be profitable by 2021 after going public in October 2019. The IPO was carried out through a special purpose acquisition company (SPAC) with the symbol IPOA, which eventually changed its name to SPCE in 2018.
However, one should be careful if investing.
The stock price has fluctuated dramatically since its inception, from an all-time high of $62.80 in February 2021 to a low of $3 in March 2023.
Boeing
The Boeing Company is another key competitor of SpaceX in the aerospace sector.
Boeing is best known as a manufacturer of commercial airplanes, however it has been involved in space exploration for decades, including its work with NASA on the international space station and space shuttle.
In fact, Boeing built the Lunar orbiters in the 1960’s, which were the first spacecraft to orbit the Moon, as well as the Saturn V rockets which sent astronauts to the Moon.
Since then, it has been involved in every major interplanetary mission in some way shape or form, which makes it a formidable player in the space exploration sector.
Lockheed Martin Corporation
Lockheed Martin Corporation has been involved in space travel for over 60 years, working with NASA on several missions, including designing the space shuttle’s external fuel tank and landing four spacecraft on Mars.
It is also partnered with Blue Origin, which won a contract from NASA in May 2023 to build a sustainable human landing system capable of taking astronauts to the Moon.
This only scratches the surface of Lockheed Martin’s capabilities in space travel, however its track record speaks for itself. Suffice to say that it will be a juggernaut in the sector for years to come.
When Will SpaceX Go Public?
The question of when SpaceX will go public has investors eagerly waiting.
Various factors, including the company’s financial needs and long-term objectives, will influence their decision to go public.
Elon Musk, SpaceX’s CEO, has expressed caution about going public too soon due to potential conflicts between short-term shareholder expectations and the company’s ambitious goals.
While SpaceX’s IPO has no specific timeline, it may occur once the company achieves certain milestones or secures its long-term objectives.
How to Buy SpaceX IPO
To invest in the SpaceX IPO, you need to stay informed and watch for official announcements from the company.
If and when they announce an IPO, you can participate through a brokerage account that offers access to IPO shares.
However, remember that investing in an IPO carries inherent risks. You should perform thorough research to understand the company’s fundamentals or seek financial advice before making an investment decision.