How To Buy SpaceX Stock

Elon Musk (net worth $172.9 billion) is a controversial figure – all the more so since he took over Twitter. However, there is one thing everyone can agree on: Musk is a brilliant man.

Even Warren Buffett (net worth $115.4 billion), who said he won’t buy Tesla stock, has complimented Elon Musk. When asked about Musk’s achievements, Buffett said Musk is “a remarkable guy.”

Musk is the brains behind leading electric vehicle manufacturer Tesla, which has delivered windfall profits for its investors. Since Tesla stock went public, it is up more than 12,400 percent.

Elon Musk’s biggest accomplishment outside of Tesla is SpaceX (Space Exploration Technologies Corporation). Given Musk’s success in growing Tesla, it goes without saying that investors want to know how to buy SpaceX stock.

It is worth noting that Musk also founded and manages The Boring Company – an infrastructure and tunnel construction business – and he owns and operates Neuralink Corporation. Neuralink is developing ultra-high bandwidth interfaces to connect human brains with computers.

Who Owns Most of SpaceX?

Elon Musk, alongside a collective of venture capital and private equity firms, own most of SpaceX.

SpaceX designs and builds advanced rockets and spacecraft, many of which were launched successfully. Examples of current launch vehicle models include the Falcon 9, the Falcon Heavy, and the Starship. SpaceX’s current spacecraft models are the Cargo Dragon and the Crew Dragon. As their names suggest, the Cargo Dragon is unmanned and the Crew Dragon carries astronauts.

The company’s mission is to disrupt the aerospace industry and to make space travel as affordable and convenient as air travel. Musk wants to usher in an age where humans are an interplanetary species, and he envisions building the first colony on Mars.

SpaceX also oversees the Starlink project – a “satellite internet constellation” – that delivers satellite internet access to users in dozens of countries worldwide. Starlink was the first such constellation, and it is still the largest in the world.

Is SpaceX Stock Public?

Elon Musk’s reputation for brilliance coupled with the excitement of space exploration has prompted overwhelming interest in SpaceX – and in SpaceX stock. Unfortunately, SpaceX is not a publicly-traded company.

As of late December 2022, Musk owned 42 percent of the business. The rest belonged to venture capital firms, private equity companies, angel investors, and a handful of public companies.

When Will SpaceX Stock Go Public?

In January 2023, SpaceX’s value was estimated at roughly $137 billion. If it moves forward with an IPO (initial public offering), it could be one of the largest in US history.

The big question is, when will SpaceX stock go public?

The short answer is, it may not – but that’s just speculation, because no one is quite sure what Elon Musk will do from one day to the next. However, his history suggests that he prefers to retain the sort of control over his companies that simply isn’t possible when they are publicly traded.

Everyone remembers Musk’s scandalous August 2018 tweet in which he said he had secured funding to take Tesla private. Shareholders eventually sued him for the fallout from that brief statement, though they did not win their case in court.

Musk also opted out of public trading for Twitter as soon as he bought the company, and his other businesses remain privately held. These incidents point to a leader who prefers to stay off of public exchanges.

In SpaceX’s case, Musk’s control over the company is already starting to slip. Though he owns more than 40 percent of the enterprise and he has voting rights structured so that he has a 78 percent share of the votes, that’s down quite a bit from his position a few years ago. SpaceX needed new capital and held multiple funding rounds, which reduced Musk’s equity. An IPO would diminish his control still further.

Nonetheless, there is hope for investors who are anxious to get into the aerospace industry. One of the most promising avenues to achieve this goal may soon be Starlink stock.

How Do I Buy Stock In Starlink?

Starlink stock isn’t trading publicly yet, but some analysts expect this company to be the one Elon Musk takes public. He has the option of holding an IPO for the SpaceX subsidiary without risking control of the entire organization.

Starlink was always intended to bring in the revenue necessary to keep cash flowing into SpaceX. Starlink’s user base is growing rapidly, and it crossed the one million subscribers threshold in December 2022. That was double the subscribers Starlink had in June 2022. If the pace remains steady, revenues will become more predictable. Starlink may even begin turning a profit soon.

Musk has said several times that he will consider a Starlink IPO when the company’s revenue is “reasonably predictable,” and it seems that point may come within the next two years. If so, investors will be able to buy Starlink stock through any traditional or online brokerage firm such as tastytrade (formerly known as tastyworks).

How Do You Buy Into SpaceX?

Though a handful of large investors have been able to buy into SpaceX, there is no practical way for average investors to buy SpaceX stock.

The good news is there are plenty of other opportunities to gain exposure to the aerospace industry.

In some cases, alternatives to SpaceX stock make better investments, because they are well-established companies with a history of delivering shareholder value.

Best Aerospace Stocks for 2023

There are dozens of companies directly or indirectly linked to the aerospace industry, from those that manufacture spacecraft to those that provide the technology and components required to make space flight possible. These are some of the best aerospace stocks:

Is Boeing Stock Expected to Go Up?

When NASA wants to go to the moon, it relies on Boeing – and always has. Boeing was integral to the original Apollo program, and it was a primary contributor to the International Space Station project.

Now Boeing is deeply involved in Project Artemis and its mission to put a new generation of astronauts on the moon.

Though it’s true that Boeing fell on some hard times following the disastrous rollout of the 737 MAX, things are turning around. Boeing stock is up roughly 28 percent in the past 12 months. This top US aircraft manufacturer tends to be the first stop for investors interested in expanding their portfolios.

Is Raytheon An Aerospace Company?

Most people think of Raytheon as a defense company, and it is. But that’s not its only claim to fame.

Raytheon has a substantial aerospace electronics division. At the most basic level, aircraft and spacecraft wouldn’t function without Raytheon technology.

Raytheon stock is essentially flat for the past 12 months, but it appears conditions are improving. The Russian invasion of Ukraine has prompted new interest in defense spending, and commercial aerospace demand is picking up.

Those factors are likely to boost Raytheon’s profits, which will eventually make their way to shareholders in the form of more valuable stocks. In the meantime, shareholders benefit from Raytheon’s 2.43 percent dividend yield.

What Does Woodward Company Do?

Woodward isn’t a household name, but that’s only because it works in the background. It provides the control systems that aircraft rely upon for safe, precise, and efficient travel.

In its most recent earnings report, Woodward announced that it beat estimates for revenue and earnings. Leadership was so optimistic about the company’s prospects that it raised guidance for the rest of the year.

Other space and aerospace stocks to consider include:

  • AeroVironment (AVAV)

  • Archer Aviation (ACHR)

  • Elbit Systems (ESLT)

  • Maxar Technologies (MAXR)

  • Planet Labs (PL)

  • Rocket Lab USA (RKLB)

  • Spirit AeroSystems (SPR)

  • Textron (TXT)

  • Triumph Group (TGI)

Buying aerospace stocks is simple through online brokerage firms like tastytrade.

Best Aerospace ETFs

Not everyone is comfortable putting all of their aerospace eggs in one basket – or one stock. That’s okay, because there are plenty of Aerospace ETFs to choose from.

For example, the iShares US Aerospace & Defense (ITA) works to match the return of the Dow Jones US Select Aerospace & Defense Index, and to date, it has been successful.

Over the past year, ITA’s returns total 5.16 percent, as compared to the benchmark’s 5.59 percent. ITA’s expense ratio is 0.39 percent.

Other Aerospace ETFs include:

  • ARK Space Exploration & Innovation ETF (ARKX)

  • Invesco Aerospace & Defense ETF (PPA)

  • SPDR S&P Aerospace & Defense ETF (XAR)

Aerospace ETFs can typically be purchased through online brokerage firms like tastytrade.

How To Buy SpaceX Stock

Though it is not possible to buy SpaceX stock at the moment, there are plenty of other publicly-traded companies working in aerospace. Their stocks can be purchased through traditional brokerage firms or with a self-directed online trading platform.

Opening an online brokerage account is fast and easy. Simply provide basic personal information and connect the account to a funding source. Deposits and transfers are made electronically, and once the funds are made available in the brokerage account, just search for the stock, choose the desired number of shares, and click “buy.”

The best part is that online brokerage firms like tastytrade don’t charge excessive fees and high commissions like traditional brokerage firms. That means more opportunity to build a robust portfolio.

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The author has no position in any of the stocks mentioned. Financhill has a disclosure policy. This post may contain affiliate links or links from our sponsors.