Space Exploration Technologies Corp., coomonly known as SpaceX, is Elon Musk's rocket company that has started to gain more public prominence as of late.
Although SpaceX has not opened for initial public offering just yet, investors can still indirectly get a slice of the revolutionary space company. Find out several options investory can indirectly secure SpaceX stocks.
SpaceX IPO
Last June, Musk told one Twitter user that Starlink, SpaceX's high-speed, low latency broadband internet satellite service, will be offered for initial public offering only if its cash flow can be predicted "reasonably well."
In that same vein, its parent, SpaceX will be offering public stocks once it has secured steadier cash flows as well. In March last year, Musk mentioned how SpaceX could make up to $30 billion a year by providing broadband.
Earlier in 2021 as well, Musk told users on Twitter how "staggeringly difficult" Starlink was as a technical and economic endeavor.
According to the tweet Musk wrote ,SpaceX needs to pass through "a deep chasm of negative cash flow" in the next year or so. He stated that every new satellite constellation in history has gone bankrupt and the company hopes that they would be the first that does not.
As of 2021, CNBC reported that the space exploration company is worth $74 billion.
Starlink is a staggeringly difficult technical & economic endeavor. However, if we don’t fail, the cost to end users will improve every year.
— Elon Musk (@elonmusk) February 9, 2021
How to Buy SpaceX Stocks Before IPO
According to Couch Investor, SpaceX might go public in 2023. Until then, there are a few companies that are public that you can invest in to indirectly buy into Space Exploration Technologies Corp.
1. Baillie Gifford Trusts
According to Yahoo! Finance, there are two Baillie Gifford trust that allow investors the opportunity to indirectly hold stake in SpaceX. The Investment management Baillie Gifford, founded and based out of Edinburg, Scotland, holds shares in Space X.
Its Scottish Mortgage Investment Trust and its US Growth Trust are open for indirect investments in its SpaceX holdings. The shares trade on the london Stock Exchange.
Scottish Mortgage Investment Trust has 0.8 percent exposure in Space X while US Growth Trust includes a 1.6 percent exposure to SpaceX as part of their ticker symbols SMT and USA respectively.
2. Google
The tech giant put in $900 million in investments toward SpaceX back in 2015 in a joint venture with Fidelity.
By investing in Google, your stocks may already be indirectly invested in SpaceX and its capital growth.
Yahoo! does note that Google's share of SpaceX's total value is less than it was nearly six years ago. Alphabet, the giant search engine's parent company, may sell that stake later on as well.
BREAKING: SpaceX announces it raised a $1B in a financing round with two new investors, Google and Fidelity. http://t.co/rPpc8sIzAu
— CNBC Now (@CNBCnow) January 20, 2015
3. Fidelity
Fidelity is a Boston-based financial services provider and fund company. Aside from the 2015 joint venture with Google, Fidelity also participated in a 2020 investment round for SpaceX.
4. Venture Capital Funds
Venture capital funds hold or have help SpaceX stocks, these include 75 and Sunny, Dedicated Venture Capital, and Elevation Capital. You can also see more venture capital companies invested in SpaceX in DealRoom.
Over the last few years, Venture Capital has become more accessible to the everyday investor through crowdfunding platforms. This, however, is not the best setup for retail investors as it does require setting your investment in the company for a set amount of time.
5. Other aerospace companies funders
Investors should also keep an eye out for companies that already have a track record of investing in space exploration, aerospace and the military that could have interest in Elon Musk's company. These could be Direxion Daily Aerospace & Defense Bull 3X Shares, ARK Space Exploration & Innovation ETF, iShares U.S. Aerospace & Defense ETF, SPDR S&P Aerospace & Defense ETF, SPDR S&P Kensho Final Frontiers ETF, and Procure ETF.
These have not yet been confirmed but come SpaxeX's next funding campaign, it is best to keep tabs on these companies.
With investing comes risks that require due diligence to mitigate should anything go wrong in the stock market or with a particular stock. Take the time to research on the companies you plan on investing in as well to make the most out of your investment. It is also best to consult a financial adviser.
