How to Invest in SpaceX

Space Exploration Technologies Corp., commonly known as SpaceX, has revolutionized the aerospace industry with its innovative technologies and ambitious missions. Founded by Elon Musk, SpaceX has achieved significant milestones, including the development of reusable rockets and plans for interplanetary exploration. Since its inception, SpaceX has remained a private entity, primarily funded through contracts with NASA, commercial satellite launches, and private investments. The company has not announced any immediate plans for an initial public offering (IPO), which means its shares are not available on public stock exchanges. This private status limits direct investment opportunities for the general public. This comprehensive guide explores various avenues to gain exposure to SpaceX (buying SpaceX's stocks) and highlights similar publicly traded companies in the aerospace sector.

1. Indirect Investment Through Funds Holding SpaceX Shares

While direct investment in SpaceX is not possible for most individuals, certain investment funds have acquired stakes in the company, offering indirect exposure:

• ARK Venture Fund (ARKVX): Managed by ARK Invest, this closed-end interval fund focuses on disruptive innovation, with SpaceX as its largest holding, comprising approximately 16% of the portfolio as of December 31, 2024.
• Destiny Tech 100: This closed-end mutual fund holds over one-third of its portfolio in SpaceX stock through special purpose vehicles (SPVs), providing significant exposure to the company's growth.
• Baron Partners Fund (BPTRX): This mutual fund specializes in high-growth companies and has allocated approximately 13% of its assets to SpaceX, making it a substantial part of its investment strategy.

2. Secondary Market Opportunities for Accredited Investors

For accredited investors—those meeting specific income or net worth criteria—secondary marketplaces offer a pathway to acquire shares from existing SpaceX shareholders. Platforms such as Hiive and EquityZen facilitate transactions in private company stocks, connecting potential buyers with current shareholders looking to liquidate their holdings.

3. Anticipating a Potential SpaceX IPO

While SpaceX has not announced specific plans for an IPO, there is ongoing speculation about a potential public offering in the future. The company's valuation has soared, reaching approximately $350 billion as of December 2024. Investors interested in participating in a potential IPO should monitor official announcements and be prepared to act swiftly, as high demand is anticipated.

4. Investing in Similar Publicly Traded Companies

For those looking to invest in companies with a strong presence in aerospace and space exploration, several publicly traded options are available:

a) Tesla Inc. (TSLA)

Tesla Inc., founded by Elon Musk, is renowned for its electric vehicles and renewable energy solutions. Beyond its automotive ventures, Tesla has ventured into space-related technologies, particularly through its development of advanced battery systems and energy storage solutions that can support space missions. Tesla's innovation in energy storage is crucial for long-duration space missions, and its advancements in autonomous driving and artificial intelligence have potential applications in space exploration.

b) Boeing Co. (BA)

Boeing Co. is a global aerospace leader with a rich history in aircraft manufacturing and space exploration. The company's Space and Launch division is actively involved in developing spacecraft and launch systems, including the Space Launch System (SLS) for NASA's Artemis program. Boeing's CST-100 Starliner spacecraft is designed to transport crew to the International Space Station, demonstrating the company's commitment to advancing space exploration capabilities.

c) Northrop Grumman Corp. (NOC)

Northrop Grumman Corp. is a prominent defense and aerospace company that plays a key role in space exploration and national security initiatives. The company's development of the James Webb Space Telescope and advanced satellite systems showcases its technological capabilities. Its involvement in NASA's Artemis program and the Lunar Gateway positions it at the forefront of space exploration.

d) Lockheed Martin Corp. (LMT)

Lockheed Martin Corp. stands as one of the largest aerospace and defense companies globally, with significant contributions to space exploration through its development of advanced space systems, satellites, and spacecraft. The company's role as primary contractor for NASA's Orion spacecraft demonstrates its commitment to enabling deep-space exploration missions.

e) Rocket Lab USA Inc. (RKLB)

Rocket Lab USA Inc. represents an emerging force in the commercial space industry, specializing in small satellite launches through its innovative Electron rocket platform. The company's development of the Neutron rocket and expansion into larger payload markets positions it for significant growth in the evolving space industry landscape.

Conclusion

While direct investment in SpaceX remains challenging due to its private status, multiple indirect routes exist for gaining exposure to the company's growth and the broader space industry. From specialized investment funds to secondary market opportunities for accredited investors, various options are available. Additionally, publicly traded companies such as Tesla, Boeing, Northrop Grumman, Lockheed Martin, and Rocket Lab offer compelling alternatives for those seeking to invest in space exploration. As the industry continues to evolve, staying informed about emerging trends and key players will be crucial for making strategic investment decisions.