SpaceX is one of the most exciting and innovative companies in the world, and many people are eager to invest in the company. Here's a guide on how to invest in SpaceX stock in 2023. We'll cover where to find the stock, the risks and benefits of investing, the price of SpaceX stock, and key factors to consider before investing.
Understanding SpaceX and Its Mission
SpaceX was founded in 2002 by Elon Musk, with the goal of revolutionizing space travel and exploration. The company has since achieved a number of impressive milestones, including the first privately funded rocket to reach orbit, the first privately funded spacecraft to dock with the International Space Station, and the first privately funded mission to send astronauts to the ISS.
SpaceX's ultimate goal is to make life multi-planetary, by developing technology to transport humans and cargo to Mars and beyond. SpaceX is also working on a number of other innovative projects, including Starlink, a satellite internet service that has over 1m paid subscribers already, and the BFR (Big Falcon Rocket), a reusable spacecraft designed to take humans to Mars.
The Risks and Benefits of Investing in SpaceX
Before investing in SpaceX, it's important to understand the risks and benefits of investing in the company. Here are a few key points to keep in mind:
Risks:
SpaceX is not yet a publicly listed company, making it difficult to buy and sell stock. Tokenfolio is one way to invest in the company, and makes it easier to sell if you need liquidity or want to lock in gains.
The space industry is highly regulated, and SpaceX faces competition from other companies and government agencies.
The success of SpaceX's projects is not guaranteed. Any setbacks, failures or accidents could negatively impact the company's stock price.
Benefits:
SpaceX operates in large, fast growing markets with significant potential for upside. Starlink is estimated to have a $1T total addressable market, whilst the deep space exploration market expected to reach $700B by 2030.
The company's main launch business is already profitable and its newer Starlink business recorded its first quarter of positive cash flow in 2022 and is on track to turn a profit this year. Starlink is experiencing hyper growth.
SpaceX is expected to become more valuable than Tesla, which was worth $1.2T in 2022.
How to Invest in SpaceX Stock
Here are the options for investing in SpaceX:
Option 1: Direct Investment - Firms that Connect Sellers to Buyers
You can use firms like SharesPost, EquityZen, and Forge Global to buy shares in private companies like SpaceX. However, these firms require you to be an accredited investor, with a net worth of over $1 million or an annual income of at least $200,000. The minimum investment is high at $100,000 to $250,000, and the fees for using these services can be steep including carried interest - sharing your profits - of up to 25%. You also cannot easily realise investment gains and sell your shares, which may be locked for 6 months after any future IPO. It is important to note that SpaceX shares are not currently available on these platforms.
Option 2: Direct Investment - Tokenfolio
Tokenfolio is a private market investing platform for seed to pre-IPO tech companies, including SpaceX. Tokenfolio's investing infrastructure makes it easier to enter investments by grouping investors which enables people to invest with reasonable minimum investments. Tokenfolio provides an over-the-counter (OTC) market to sell investments, which means you don't have to wait for the company to go public in an IPO. This option offers a more accessible and affordable way to invest in SpaceX.
Option 3: Indirect investments
Another way to invest in SpaceX but without directly buying their shares is through investing in exchange-traded funds (ETFs) or publicly traded companies in the space and defense sector.
ETFs:
Direxion Daily Aerospace & Defense Bull 3X Shares (DFEN)
ARK Space Exploration & Innovation ETF (ARKX)
iShares U.S. Aerospace & Defense ETF (ITA)
SPDR S&P Aerospace & Defense ETF (XAR)
SPDR S&P Kensho Final Frontiers ETF (ROKT)
Procure Space ETF (UFO)
Publicly Traded Companies in the Space and Defense Sector:
The Boeing Company (NYSE:BA)
Lockheed Martin Corporation (NYSE:LMT)
Raytheon Technologies Corporation (NYSE:RTX)
Howmet Aerospace Inc. (NYSE:HWM)
Northrop Grumman Corporation (NYSE:NOC)
HEICO Corporation (NYSE:HEI)
Investing in ETFs or public companies allows for more diversified exposure to the space industry and can mitigate some of the risks associated with investing in individual companies like SpaceX. However, it's important to do your research and understand the specific holdings and strategies of the ETFs or companies you are investing in.
SpaceX stock price
Throughout its history, SpaceX has attracted top venture capital investors like a16Z, Founders Fund, and Sequoia, as well as corporate investors like NASA. SpaceX has raised over $10 billion from the world's leading investors:
SpaceX started with a $12 million Seed round June 2002.
Its Series A round was in December 2002, with another $12.1 million raised.
SpaceX reached unicorn status in January 2015, with a $11 billion valuation after its Series G.
In December 2021, the company hit a $100 billion valuation after Series Q.
The latest pricing information is from the Series S round in January 2023, where SpaceX had a $137 billion valuation and a share price of $77.00.
It's worth noting that due to the demand for investing in SpaceX stock, investors may need to pay a premium to acquire shares.
What is SpaceX Stock Symbol?
SpaceX does not have a stock symbol at the moment. The SpaceX stock symbol will be announced when the company files papers for an IPO.
Key takeaways
There are many opportunities and challenges of investing in SpaceX stock in 2023. As one of the most innovative and exciting companies in the world, SpaceX's ultimate goal is to develop the technology to transport humans and cargo to Mars and other planets. SpaceX is not yet a publicly listed company, so investing in SpaceX is currently only possible through certain platforms or indirect investment. Investors can invest in exchange-traded funds (ETFs) or publicly traded companies in the space and defense sector. Another option is Tokenfolio, which enables investors to invest in SpaceX with reasonable minimums and has built-in secondary markets providing liquidity if you need to exit before IPO.