Ever since the 1960’s during the great space race, man has looked to the stars and dreamed of travel to other planets.
We call space the final frontier, and for good reason. It’s hard to get into space safely, and even harder to get back down once you’ve gotten there.
In recent years, independent aerospace companies have been founded, mostly by wealthy business owners who have an interest in space and want to achieve some goal that they deem to be positive for the rest of the population.
Jeff Bezos started Blue Origin, dreaming of a world that serves as a place to live, while space becomes the place for industry.
We also have Elon Musk, who created SpaceX, aiming to make space travel affordable, as well as a way to launch satellites on his own.
With aerospace companies on the rise, looking to invest in an aerospace stock only makes sense.
The aerospace industry is going to do nothing but grow in the years to come as man looks to the skies for new methods of travel and industry.
In this article, we’re taking a deep dive into SpaceX, the aerospace company founded by Elon Musk, and whether or not SpaceX stock can be bought.
We’ll also be looking at SpaceX competitors and investment opportunities regarding investing in those companies!
Can You Buy SpaceX Stock?
Ar this time, SpaceX remains a private company, and as such SpaceX stock is unable to be purchased.
Currently, there is no initial public offering planned for SpaceX stock.
According to the founder and owner of SpaceX, CEO Elon Musk, the company will not be taken public, as he believes that the short-term demands of the potential shareholders would interfere with his long-term plans for the company.
Musk, being the ambitious entrepreneur that he is, undoubtedly has strong ambitions when it comes to SpaceX, as well as the companies that fall under its umbrella.
If an IPO is announced, it will be big news to people familiar with the company that are looking to invest in SpaceX stock.
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SpaceX Stock Price
Because SpaceX is a privately owned company, and there is no planned IPO, there is no current price for SpaceX stock.
SpaceX will likely remain a private company due to Musk’s desire to remain as such.
SpaceX Stock: Who Owns SpaceX?
Elon Musk, one of the wealthiest men in the world, is the owner of SpaceX.
Ownership is derived from Elon Musk’s Trust, which owns 54% of the equity and controls 78% of the voting. Musk also owns Tesla, Inc., The Boring Company, as well as Neuralink.
Musk prides himself on being an entrepreneur and a visionary and looks to use his wealth and his companies to change the shape of the world.
He is often referred to as a philanthropist and has gained a large following through his interaction with people via social media platforms, most notably Twitter.
Musk attended the University of Pretoria in South Africa for a short period of time before making his way to Canada to stay with relatives.
While in Canada, he attended Queen’s University in Ontario for two years before ultimately transferring to the University of Pennsylvania.
Musk graduated from the University in 1997 with two bachelor’s degrees, a Bachelor of Science in economics and a Bachelor of Arts in physics.
Musk was accepted to Stanford for a Ph.D. program in materials science, but dropped out understanding the significance of the internet boom, and focused all of his attention there, seeing success ever since.
Can You Buy SpaceX Stock? SpaceX Background: What Is It?
SpaceX, formally known as Space Exploration Technologies Corp., is an American company whose focus is on aerospace manufacturing, aerospace services, and satellite communications.
The company is located in Hawthorne, California, and was founded in 2002 by CEO Elon Musk.
The company’s main goal at the time of its founding was the reduction of space transportation costs, enabling the colonization of Mars.
In more recent years, the company’s goals have diversified, still philanthropic in their nature.
SpaceX Stock: Early Years
In 2001, Musk had the idea for Mars Oasis, a project on landing an experimental greenhouse on Mars.
He wanted the project to take life the farthest it’s ever traveled and tried desperately to campaign to increase public interest, and in turn NASA’s budget.
As the project dwindled and ultimately failed, Musk realized that through his own endeavors, he could create the means to make his concept a reality.
In 2002, Musk assembled a team of individuals to start SpaceX.
Musk was no stranger to business or economics at the time that he founded SpaceX, and realized that because orbital travel had too high a cost, projects like the colonization of Mars and even simple orbital travel would be impossible to carry out.
SpaceX started with the goal to reduce travel costs and, in turn, make it more accessible.
By 2005, SpaceX had announced plans to create a human-rated space program throughout the remainder of the decade, with NASA in full support.
They agreed to provide crew and cargo resupply to the international space station for demonstration once SpaceX’s vehicles were ready to travel.
The vehicle developed was named the Falcon 1, a craft meant for NASA’s eventual demonstration.
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The craft was tested three times from 2006 to 2008, all of which ended in failure.
At the time, the company was in peril, nearly going bankrupt from the endeavors.
However, at the end of 2008, the first successful launch (the fourth in series) of the Falcon 1 spacecraft occurred, and NASA awarded the first Commercial Resupply Services contract to SpaceX, effectively saving the company.
Falcon 1 reached orbit successfully a second time in 2009, and was retired shortly thereafter.
SpaceX Stock: Middle Years
Following the success of the Falcon 1, SpaceX moved ahead with more significant crafts, the Falcon 9 and the Dragon.
The funding from the NASA contracts allowed for development to move forward quickly, and in 2010 the first test of the Falcon 9 with a mock Dragon spacecraft unit took place successfully.
Later that same year, the first operational Dragon spacecraft and Falcon 9 launched, safely returning to Earth after completing all of its mission objectives.
Because of the successful launch in 2010 and the data provided by it, NASA awarded an additional contract to SpaceX in 2011 for the development of an integrated launch escape system in preparation for manned flights.
The intent of the Falcon 9 and Dragon vehicle was to shuttle crew and supplies to the ISS, and an escape system was needed to move forward.
In 2012, SpaceX began to pursue the reusable test program, and prototypes of the vertical takeoff and landing system were developed.
The first instances of these reusable rockets were tested in 2013.
In 2014, SpaceX began taking on commercial contracts for launches, competing with the American companies United Launch Alliance and Lockheed Martin.
ULA had a monopoly over the U.S. military payload market, and SpaceX had begun to bid for these contracts with more affordable pricing than what ULA could offer.
SpaceX began to design and develop the Starlink satellite constellation in 2015, aimed at providing affordable global broadband internet.
The constellation would eventually consist of 4,425 satellites in total, providing total global coverage for high-speed internet.
This same year, the Falcon 9 had its first major failure, causing an explosion two minutes into the flight.
Another explosion occurred during a propellant fill operation in 2016, destroying both the payload and the rocket.
SpaceX Stock: Recent Years
In 2017, SpaceX launched a returned Falcon 9 rocket, the first time a returned rocket had ever been launched.
The launch was successful, as well as the recovery of the rocket, another first.
Demonstrating their viability in the space industry, SpaceX began to win commercial contracts steadily and quickly became the leading global commercial launch provider.
In 2019, SpaceX began to move forward with the Starlink project, as well as a new project dubbed Starship, aimed towards space travel.
In 2020, SpaceX successfully launched two astronauts, safely transporting them to the ISS.
It was the first private company to have ever done so, another monumental achievement for SpaceX. It proved to the entire space industry that reusable rockets were completely possible.
SpaceX Stock: Why Is SpaceX Valuable?
SpaceX is arguably the most successful of the private companies participating in the newfound space industry.
Throughout the life of the company, SpaceX has been able to narrowly avoid bankruptcy, only to come back stronger than before.
In the face of adversity, SpaceX has only continued to make large strides. SpaceX’s value is also derived by its popularity.
People familiar with Elon Musk, as well as almost anything space-related, know about SpaceX.
Additionally, investors flock to SpaceX any time a round of funding is announced.
The worth of the company is universally known, and investors will do just about anything to be able to get in on the ground floor before commercial space travel is made possible to the general public.
You can read more about how SpaceX makes money here.
Can You Buy SpaceX Stock? SpaceX Competitors You Can Buy
While SpaceX stock isn’t currently available, there are competitors of the company that are able to be purchased on the stock market.
Let’s take a look at some of the top picks.
Virgin Galactic (NYSE: SPCE)
Another billionaire’s brainchild, Virgin Galactic was founded by Richard Branson in 2004.
Though the company is nearly as old as SpaceX, the company just recently went public and has been benefiting off of SpaceX’s success.
When it comes to investing in a competitor of SpaceX, The Motley Fool Stock Advisor points to Virgin Galactic as the answer to anyone interested in investing in space tourism.
While they still haven’t launched a person into space, the company already has a list of over one thousand people ready to fly for $250,000 per seat.
Analysts anticipate that stocks will only continue to increase in value as they make progress.
Maxar Technologies (NYSE: MAXR)
If looking to invest in space company stocks that aren’t related to space tourism, then Maxar Technologies is your pick.
This company is a space technology company that focuses specifically on satellites and digital imaging.
Maxar Technologies’ services are utilized by the government as well as Google Maps.
When looking at the market data over the period of the last year, the stock has shown a positive trend and will continue to grow.
Tesla, Inc. (NASDAQ: TSLA)
While Tesla may not be a competitor of SpaceX, it certainly is a good alternative when looking to purchase stock in SpaceX.
Tesla, also owned by Musk, is the leading electric car manufacturer in the United States and has a significant history of success.
The company itself has done nothing but grow, and looks to expand by developing and manufacturing reusable batteries for other companies, not just its own.
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SpaceX Stock: What Is SpaceX Worth?
Through two different fundraising rounds in the last year, SpaceX has been able to raise over $3 billion dollars, and has been valued at $74 billion.
The company’s annual revenue in 2018 was over $2 billion, as well.
As the company continues to grow and develop, from commercial and governmental contracts as well as other ventures like Starlink, it can be assured that the company will continue to grow in worth as well.
SpaceX Stock: Final Thoughts?
SpaceX is the most popular company involved in the current commercial space race and has done nothing but grow during the course of its life.
The company’s goal was originally to make space travel and rocket launches more affordable, but since the goals of SpaceX have compounded and grown.
With the introduction of Starlink, one of the more philanthropic goals of the company is providing affordable high-speed internet to rural residents, allowing them to access information they may have not had in years prior thanks to the satellite constellation being put into orbit.
Elon Musk’s wishes as founder and CEO are for SpaceX to remain a private endeavor.
However, should there be an IPO, you can be sure that the SpaceX stock price will be high, and that it will be purchased feverishly by investors who desperately want a chance at investing in the private companies leading the way in aerospace technology.
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