If you are one of those who are looking forward to How to Invest in SpaceX or want to invest in the SpaceX stock market, then you are at the right place.
Elon Musk is a successful entrepreneur. He has been the founder and CEO of many wildly successful companies from PayPal to Tesla and thanks to all the exuberance behind Tesla stock an Elon musk cult-like following. He’s become the world’s richest man and many shareholders who invested in tesla stock have become multi-millionaires or at least made incredible returns.
But Tesla is not the main viewpoint it’s about SpaceX now. It could be the next successful company of Elon Musk.
The real question is could SpaceX which is a private company go public, could it be majorly successful, could you guys as shareholders are majorly rewarded and how can you invest?
Let’s get straight to all the answers to the question of ‘how to invest in SpaceX.’
1. What’s the Competitive Advantage of SpaceX?
There are various competitive advantages of SpaceX:-
1.1. Reusable Rockets
The first competitive advantage of SpaceX is the fact that this company focuses on reusable rockets. SpaceX is a private company and it is the first one to do that.
Now, this offers a massive cost saving compared to using these throwaway rockets which NASA used to use traditionally. Thus this is a major reason NASA did not have a trip for humans to mars as the cost would be too great. SpaceX also provides commercial flights into space for NASA to provide crew members to the international space station.
1.2. SpaceX Real-World Commercial Contracts
SpaceX is a company that is involved in a lot of Real World Commercial Contracts.
The U.S. space force has allowed SpaceX to use the used rockets. Moreover, it will launch government two G.P.S free satellites.
Initially, the government insisted to use the brand new rocket because of national security but SpaceX has already flown many used rockets before. And this is where things got special for SpaceX.
They agreed with the government for a price of 97 million each for the satellite launch. But they did something amazing and they asked for 52.7 million for both the launches and the permission to use the used rockets.
What’s this mean?
Well, this is a greater cost reduction of flying these reusable rockets by over 40 percent.
One of its rivals SpaceX which is United Launch Alliance (ULA) has got 60 percent of the National Security Contracts from the Space Force. They have done a contract for 5 years from 2022 to 2027. Currently, SpaceX is having 40 percent of the contracts.
This is good news in the short term for Boeing and Lockheed Martin who are joint owners of ULA.
But the thing which is really interesting is that after this period the game will in the hands of SpaceX. Post-2027 ULA could lose many parts of its contracts as SpaceX will provide them with a better price to the Space Force. This is great news for Elon musk and any of you guys who potentially managed to invest in SpaceX stock.
2. How Does SpaceX Compete Internationally?
What about other commercial companies, how does SpaceX compete internationally?
Well firstly if SpaceX can launch commercial payloads for 36 million dollars each then ULA won’t be able to compete so they’re out of the ball game.
The price set by the SpaceX which is about 36 million is really cheap than the original price. This thing makes them unique and has better business growth in the future.
And this is what makes them unique and gives them a competitive advantage.
3. SpaceX Starlink and Other Projects
SpaceX has a lot of other projects apart from working for government satellite launches.
They’re also working on a project called Starlink. The Starlink parent company is SpaceX. It will provide high-speed internet with the help of satellites.
This is a thing which is really beneficial for the people in the rural areas. However, this can damage the business of the fiber optic industry because there will be no need to dig up for the fiber optic cable and the maintenance cost of the cables will be saved.
This technology will allow you to access the internet with the help of satellites. This could fast-track many emerging markets and third-world countries.
For example, in many parts of Africa, they did not even go through the fixed telephone line stage that is in Europe, and the US. They simply skipped that stage and went straight to mobile communications for their internet, their phone, and even banking.
So, this is one to watch and it’s not happening way into the future it’s happening right now.
SpaceX is really doing good in terms of the Starlink satellite launch They have launched a total of 950 satellites into orbit.
4. Will SpaceX Go Public?
It’s already clear that SpaceX is really a massive company and is really performing well in the business. All this tells us that SpaceX has a competitive advantage.
But the question will SpaceX go public?
Elon Musk has commented on this topic on Twitter. From his views, it’s clear Elon Musk has a strong affinity for retail investors.
He understands you guys, and he wants to help you guys achieve great investing returns this is one of the major reasons why many retail investors do get behind Elon Musk.
He cares for others but he is popularly known for changing his mindset. So, it wouldn’t surprise us if SpaceX went public earlier.
5. How to Invest in SpaceX?
How to invest in SpaceX, but more important to know about this is there any way to invest in SpaceX before it went public?
Well, there are many ways by which you can invest in SpaceX. There are options available for those also who don’t want to wait for SpaceX to go public or wait for the SpaceX IPO date. It is challenging to invest in SpaceX rather than any publicly traded company but still, you can invest in SpaceX.
Let’s get straight to the ways how to invest in SpaceX.
5.1. Invest Privately in SpaceX
The first method is to invest in SpaceX privately.
This method requires you to be an accredited investor for investing in SpaceX. Shares in private companies are generally held by venture capitalists, insiders, accredited investors, and many more.
For being an accredited investor your income should be higher than $200,000 in the existing two years and in the current year also. You need to have a net worth of more than one million dollars alone or it can be together with the spouse. Your net worth should not include your primary residence.
But many of the people are not accredited investors and because of this many of you would not be able to invest. The market will provide the access to invest in private company shares to those who meet the criteria for accredited investors. However, there are some other options also.
5.2. Scott Mortgage Investment Trust (SMT)
The second solution to invest in SpaceX is to invest in Scott Mortgage Investment Trust (SMT) on the London Stock Exchange. This investment fund thinks of these guys like the UK version of Arkhamvest.
Now diving into the top holdings for the Scottish mortgage investment trust, it’s got a fantastic range of companies from Alphabet to Amazon to Tesla. There is Space exploration technologies corp series J preferred and space exploration corp series N.
These are two venture capital private funding rounds in which Bayley Gifford entered and invested in SpaceX. The annoying thing is these only make up 0.4 percent and 0.3 of the total fund.
So, if you invested into this fund only less than one percent of that will go towards SpaceX but it’s still a great fund anyway and there are lots of great companies in here, so that’s one method.
5.3. Invest in Google!
Yes, you heard that right invest in Google!
Method number three will be potentially to invest in Google or Alphabet stock or other publicly traded companies that have invested in SpaceX. Some people have a large position in Alphabet or Google.
These both companies invested in SpaceX really early they currently share around 7.5 percent of the company.
There is the Fidelity Blue Chip Grow Fund (FBGRX) and the Fidelity Contra Fund (FCNTX), they both have positions in SpaceX.
Bear in mind many of these funds do have ongoing charges of a few percent every year, so just be aware of that guys when investing in any funds.
5.4. Invest in Ark Space Exploration!
Here’s another potential solution that could come extremely soon. This is option number four and this is to invest in our confess new space exploration ETF.
Now diving into this new form which was recently announced by Cathy Wood of Arkhamvest, they provide funding and exposure to those who invest in space technology companies.
Kathy wood was one of the original tesla balls and one of the major investors in Tesla early on. When everybody was doubting tesla Kathy Wood was predicting 10,000 per share. Everybody laughed at her on CNBC but it’s clear that she’s proven it.
Hope this information on how to invest in SpaceX you liked it. Currently, we cannot buy SpaceX stock or SpaceX shares as it is a private company but still we can invest in SpaceX in various ways. SpaceX will be a public company but nobody can predict Elon Musk. But still, there are a lot of other publicly traded companies in space technology like Raytheon Technologies Corporation where you can invest.
If you want to get more knowledge about Elon Musk then check this out.