SpaceX was the first organization in the world to engineer a reusable rocket ship, and the company has now set its sights on setting up a permanent settlement on Mars.
Investors all over the world have sought ways to gain exposure to SpaceX in recent years and were extremely disappointed to find out that it’s currently impossible to become a shareholder directly.
However, there are still some ways to gain indirect exposure to SpaceX. This article will cover the best ways to gain investment exposure to SpaceX, and also cover the likelihood of a SpaceX IPO date being announced in the future.
About SpaceX
Space Exploration Technologies Corporation launched in 2002 after Elon Musk purchased a seat at Mars Society, which is a nonprofit organization that aimed to usher in a new era of space exploration with Mars as the final frontier. Mars Society encapsulates the core ethos of SpaceX, with Musk leading a company that has single-handedly taken space-faring technologies to new levels for the human race.
During the early years of SpaceX, the company faced many economic barriers. One of the primary stumbling blocks was the problem of launching test flights for spacecraft in an affordable way. Large sums of money are invested into the research and development of spacecraft, and with no prior blueprint for building a reusable rocket ship, a key concern was the sunk costs involved with testing out prototypes.
Falcon Heavy test flight, February 2018
However, SpaceX made a major engineering breakthrough during the first successful test flight of Falcon 2. Falcon Heavy later became the first rocket ship in history to relaunch after returning safely from orbit. The ability to reuse spacecraft has drastically reduced the costs involved with testing out new models, which has marked a key shift in the space exploration effort.
Later in 2018, SpaceX acquired the US government as a customer. SpaceX has received more than $12 billion in government contracts since the partnership was formed, and NASA has selected SpaceX rockets to be used in the next manned mission to the moon. As of today, SpaceX rockets regularly deliver supplies to the International Space Station, being the first non-government spacecraft to be given permission to do so.
Musk has stated repeatedly that the core long term aim of SpaceX is to establish permanent human settlements on the moon and on Mars. After being the first company in human history to engineer a reusable rocket, SpaceX is now honing the technology so that it can safely transport humans and cargo to the far reaches of our galaxy.
How to invest in SpaceX?
SpaceX is not a publicly traded company, but there are some ways to gain investment exposure. One of the most accessible methods for gaining an indirect stake in the future of SpaceX is to invest in Baillie Gifford Trusts, a Scottish investment fund that owns SpaceX shares.
Baillie Gifford offers two trusts that contain exposure to SpaceX. The first, Scottish Mortage Investment Trust, includes 0.8% exposure to SpaceX and trades on the London Stock Exchange (LSE) under the symbol, SMT. The second, US Growth Trust, offers 1.6% exposure to SpaceX and trades on LSE under the symbol USA.
Will there be a SpaceX IPO?
There are currently no plans for SpaceX to go public. The company may decide to announce a SpaceX IPO date in the future, but its status as a private company is built on its early history of being self-funded by Elon Musk, and lucrative investment contracts with major global organizations in recent years.
Google and Fidelity launched a $900 million joint investment in SpaceX in 2015. Since 2018, the company has had a working relationship with the US government and it continues to work closely with NASA as a business partner.
SpaceX is not a traditional company in terms of its revenue generation. The business model does not serve consumers and is not designed to turn a profit through sales. The lucrative business partnerships formed by SpaceX in recent years are able to fund the research and development processes, and so its status as a private company is unlikely to change anytime soon.
How to invest in SpaceX FAQs
Is SpaceX on the stock market?
SpaceX is not available on any stock exchange because it is a fully private entity. However, there are two investment trusts that contain exposure to SpaceX, with each trust being offered by a Scottish company called Baillie Gifford.
The two trusts that contain exposure to SpaceX are called Scottish Mortgage Investment Trust and the US Growth Trust. Both trusts offered by Baillie Gifford can be found on the London Stock Exchange, under the SMT and USA ticker symbols respectively.
Who owns SpaceX now?
As of 2021, Elon Musk owned 43.61% of Space Exploration Technologies Corporation. The remaining stocks have been distributed to various investors, including Baillie Gifford, Google and Fidelity. Despite owning less than 50% of the total shares, Musk retains full control over SpaceX operations.
Can you invest in SpaceX stock?
There are no ways to invest in SpaceX stock directly, but there are several methods of gaining indirect exposure. As mentioned, the Baillie Gifford Trusts are the preferred way for most investors to gain investment exposure to SpaceX. One additional method is to buy shares in Google.
After launching a joint investment with Fidelity in SpaceX in 2015, Google became a SpaceX shareholder. Google trades on NASDAQ under the GOOGL ticker symbol, and can provide indirect exposure as it currently holds SpaceX shares on its balance sheet.
The bottom line: SpaceX is not a publicly traded company but you can gain exposure in several ways
SpaceX has been a private company since it first launched in 2022, and this doesn’t look as though it’s going to change anytime soon. However, prospective investors will be pleased to know that they can still gain exposure to the company in a number of ways.
One of the most popular methods for gaining a stake in the future of SpaceX is by purchasing one of two trusts that are offered by Baillie Gifford. Another way to gain indirect exposure is to buy shares in Google (NASDAQ:GOOGL), which invested $900 million in SpaceX to become a shareholder in 2015.
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Source: https://coincodex.com/article/32773/spacex-stock/