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Elon Musk has the talent to stay one of the most popular and therefore important figures that can shake the markets. His tweets create motions, especially affecting the stock prices of the companies he is involved with, like Tesla Motors or Twitter.
Elon Musk companies create a lot of attention and obviously have a special type of marketing. To hardcore investors like Warren Buffet, the valuation of Tesla’s stock is so detached from the price his answer if he would invest in Tesla is just “No.” However, the hype about his companies is real, it is just hard to plug this metric into Warren Buffet’s investing toolbox.
SpaceX is likely to have similar waves to Tesla, meaning you are looking into a very risky business with an added “wild factor” coming from a controversial inventor such as Elon.
But first, the bad news.
SpaceX is not a public company, you better get ready to do some research and also stay up to date on how to invest in this Elon Musk-style space tech company. It is hard to get involved as a mere commoner. But here are the good news – steps that might get you to the stars with SpaceX.
There are ways to find SpaceX stock, even before the IPO. Here is how.
SpaceX is a private company, and its stock is not publicly traded. As a result, it is not available through traditional brokerage firms such as Charles Schwab, TD Ameritrade, or E-Trade. Instead, you can invest in SpaceX stock through a broker who specializes in private investments. These brokers may offer private placement investments in companies like SpaceX.
SpaceX is raising $750 million in a new round of funding that values the company at $137 billion, according to correspondence viewed by CNBC in 2023. Andreessen Horowitz, also known as a16z, is said to be a lead investor in the new funding round. In addition to him, Founders Fund, Sequoia, and Gigafun should be on your radar.
Are you a qualified Investor?
You need to be an accredited investor or work with a broker who specializes in private investments. An accredited investor is someone with a net worth of at least $1 million, excluding their primary residence, or an annual income of at least $200,000 for the past two years. The broker you choose must be registered with the Financial Industry Regulatory Authority (FINRA).
How to Invest in Spacex Stocks
eToro is a regulated broker that enables investors to invest in Spacex stocks. As one of the best online brokers available, eToro has built a strong reputation for offering a wide range of options catering to both beginner and professional traders. In this mini guide, we will walk you through the process of opening an account on eToro and investing in Spacex stocks.
Step 1: Open an Account
To get started, you will need to open an account with eToro. Visit their homepage at https://www.etoro.com/ and click on the “Sign Up” or “Join Now” button. This will take you to the registration page, where you will be required to provide your name, email address, phone number, and create a password. Once you have filled in the necessary information, click “Create Account” to proceed. We will provide an image illustrating the homepage and registration page for your reference.
Step 2: Upload ID
After creating your account, eToro will require you to verify your identity. This step is crucial for complying with financial regulations and ensuring the security of your account. You will need to upload a clear photo or scanned copy of your government-issued ID or passport. Ensure that all information on the document is visible and legible. We will provide an image of the upload page for Proof of Identity for your reference.
Step 3: Make a Deposit
To begin investing in Spacex stocks, you will need to fund your account. Log in to your eToro account and click on the “Deposit Funds” button, typically found at the bottom left corner of the platform. You can fund your account using various methods such as credit/debit card, bank transfer, or e-wallets like PayPal, Skrill, or Neteller. Keep in mind that the minimum deposit amount varies depending on your region and payment method. We will provide an image of the eToro platform with an arrow pointing to the “Deposit Funds” button for your reference.
Step 4: Search for SPC
Now that your account is funded, it’s time to search for Spacex on the eToro platform. You can do this by using the search bar located at the top of the platform. Type “Spacex” or its stock symbol “SPC” and select the relevant result from the list. We will provide an image of the eToro platform showcasing the main search bar where you can search for Spacex.
Step 5: Trade SPC
Once you have located Spacex on the platform, click on the stock to open its trading page. Here, you can view detailed information about the company, including its stock price, market cap, and recent news. To purchase Spacex stocks, click on the “Trade” button, which will open a new window where you can enter the amount you want to invest and set any additional order parameters. When you’re ready to execute the trade, click “Open Trade.” We will provide an image of the eToro platform with an arrow pointing to the “Trade” button where you can trade Spacex stocks.
Specialized Pre-IPO Brokers
- Forge Global/Sharespost: This is a pre-IPO marketplace that allows investors to trade shares in private companies, including SpaceX. To be eligible to invest through this platform, you must be an accredited investor, meaning you have a net worth of over $1 million or an annual income of over $200,000. The minimum investment required through this platform is $100,000, but for some shares, the minimum may be higher. To complete the investment process, potential buyers may need to pass a qualification process, which includes a review of their financial situation and investment history. While SpaceX is not currently listed on Forge Global/Sharespost, it is worth noting that Momentus, a SpaceX partner, is available on the platform.
- EquityZen: This is another pre-IPO marketplace that acquires pre-IPO shares from early investors and employees of private companies and makes them available to qualified investors. Similar to Forge Global/Sharespost, you must be an accredited investor to participate in EquityZen. The minimum investment is $10,000, but for some shares, the minimum may be higher. As with Forge Global/Sharespost, EquityZen has a qualification process that potential buyers must pass to invest through the platform.
- SecFi: This platform specializes in linking outside investors with employees of private companies who need to liquidate their stock options, which may include options for SpaceX. To participate in SecFi, you must be an accredited investor. This option is suitable for accredited investors who are looking to invest in pre-IPO companies through employee stock options. By investing through SecFi, you have the opportunity to purchase shares from current employees of SpaceX, giving you a unique way to gain exposure to the company.
- Nasdaq Private Market: This private marketplace provides access to private company shares for investors who meet SEC accredited investor criteria. The Nasdaq Private Market offers a more organized and regulated environment for investing in private companies, including SpaceX. To participate in the Nasdaq Private Market, you must be an accredited investor and meet the SEC’s criteria for accredited investors.
- EquityBee: This private marketplace allows investors to fund an employee’s stock options in exchange for a share in the proceeds from their eventual sale. Similar to SecFi, EquityBee offers investors the opportunity to invest in private companies through employee stock options. To participate in EquityBee, you must be an accredited investor. At the time of writing this article, SpaceX was not listed on EquityBee, but the platform does offer exposure to The Boring Company, which is also founded by Elon Musk. If you are looking for exposure to space tech companies, Blue Origin, a competitor of SpaceX, is listed on EquityBee and could be a good alternative.
Indirectly you can get involved with SpaceX if you cannot meet the criteria for the above platforms.
- Consider researching and alternative stock such as Momentus (NASDAQ:MNTS), a partner commercial space company.
- Get exposure to space tech ETFs. We also think this is less risky as they are diversified and much easier to access.
- If you wait for SpaceX IPO you might need to wait for a year or two until the markets rebound.
- We think right now it is better to be exposed to other markets until the SpaceX opportunity comes. The markets that are expected to do well in current global conditions are emerging markets (countries), energy commodities, copper and other metals, and energy pipelines.
- Keep track of SpaceX investors here: https://app.dealroom.co/companies/spacex/
In conclusion, investing in SpaceX, while highly sought after due to its potential for significant returns and association with Elon Musk, remains a challenging endeavor for the average investor. As a private company, SpaceX’s stock is not available through traditional brokerage firms, and investment opportunities are limited to accredited investors and specialized pre-IPO platforms. However, there are alternative ways to gain exposure to the space tech industry, such as investing in partner companies like Momentus, exploring space tech ETFs, or considering other markets that show promise in the current global conditions. For those interested in SpaceX, it is crucial to stay informed and keep an eye on the company’s developments and possible IPO in the future.
No, SpaceX is currently a private company, and its stock is not available for purchase through traditional brokerage firms such as Charles Schwab, TD Ameritrade, or E-Trade.
To invest in SpaceX, you need to be an accredited investor or work with a broker who specializes in private investments. You can consider specialized pre-IPO platforms such as Forge Global/Sharespost, EquityZen, SecFi, Nasdaq Private Market, or EquityBee, which cater to accredited investors seeking access to private company shares.
An accredited investor is an individual with a net worth of at least $1 million, excluding their primary residence, or an annual income of at least $200,000 for the past two years. The broker you choose to work with must be registered with the Financial Industry Regulatory Authority (FINRA).
Yes, there are alternatives to investing directly in SpaceX. You can invest in partner companies like Momentus (NASDAQ:MNTS), explore space tech ETFs, or consider other markets that show promise in the current global conditions, such as emerging markets, energy commodities, copper and other metals, and energy pipelines.
There is no specific timeline for a SpaceX IPO. It could be a year or two before the company goes public, depending on market conditions and the company’s plans. It is important to stay informed and follow the news related to SpaceX’s developments and potential IPO in the future.
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