How to Buy SpaceX Stock Without Being an Insider

2025-04-24
Summary:

Learn how to buy SpaceX stock without being an insider. Explore private equity options and indirect investment strategies available in 2025.

SpaceX, Elon Musk's pioneering aerospace company, has captured the imagination of investors worldwide. With its ambitious missions and technological advancements, many are eager to invest in its success.


However, as of 2025, SpaceX remains a privately held company, making direct investment challenging for the average investor. But what if we told you that buying SpaceX stock without being an insider is challenging but not impossible?


Today's article will list several strategies to buy SpaceX stock, even if you're not an insider or a SpaceX employee.


Understanding SpaceX's Private Status

How to Buy SpaceX Stock - EBC

Before exploring investment options, it's essential to understand why SpaceX's stock isn't publicly traded. Elon Musk has expressed reservations about taking SpaceX public, citing concerns over the pressures of quarterly earnings reports and the potential impact on the company's long-term goals, such as colonising Mars.


As a result, SpaceX has remained private, raising capital through private funding rounds involving venture capital firms, private equity, and select institutional investors.


This private status limits direct investment opportunities for the general public, but alternative methods exist for those interested in participating in SpaceX's growth.


Options on How to Buy SpaceX Stock

Options to Buy SpaceX Stock - EBC

Investment Options for Accredited Investors

Accredited investors, individuals meeting specific income or net worth criteria, have more avenues to invest in private companies like SpaceX.


1. Secondary Marketplaces

Platforms like Forge and EquityZen facilitate the buying and selling of pre-IPO shares from existing shareholders. These marketplaces provide opportunities to invest in SpaceX, albeit with certain restrictions and limited availability.


2. Direct Purchases from Shareholders

Some platforms, such as Hiive, list shares from current or former SpaceX employees and investors. Currently, multiple listings for SpaceX shares allow accredited investors to negotiate purchases directly.


Indirect Investment Routes for Retail Investors

While direct investment in SpaceX is limited to accredited investors, retail investors can still gain exposure through indirect means.


1. Investment Funds with SpaceX Holdings

Several funds hold stakes in SpaceX, providing indirect exposure:

  • ARK Venture Fund (ARKVX): Managed by Cathie Wood's ARK Invest, this fund has SpaceX as its largest holding, comprising approximately 15.88% of its portfolio.

  • ERShares Crossover ETF (XOVR): This ETF invests in public and private companies, with SpaceX accounting for about 12.3% of its assets.

  • Baron Partners Fund (BPTRX): A mutual fund with a history of investing in high-growth companies, SpaceX makes up around 13% of its holdings.

  • Destiny Tech100 Fund (DXYZ): A closed-end fund focusing on private technology companies, with SpaceX comprising nearly 38% of its portfolio.


2. Investing in Companies with SpaceX Stakes

Some publicly traded companies have invested in SpaceX:

  • Alphabet Inc. (GOOG, GOOGL): Google's parent company invested $900 million in SpaceX in 2015 and participated in subsequent funding rounds, holding a stake valued at approximately $24.5 billion.

  • Bank of America (BAC): Invested $250 million in SpaceX in 2018, with its stake now estimated at around $2.9 billion.


Investing in these companies provides indirect exposure to SpaceX's growth.


3. Wait for a Potential IPO or Spin-Off

While there is no official announcement regarding a SpaceX IPO, investors can stay informed and prepared:

  • Monitor News and Updates: Keep an eye on reputable financial news sources for any announcements about SpaceX going public.

  • Brokerage Accounts: Ensure you have an active account to act quickly if an IPO is announced.


For context, Elon Musk has hinted that its Starlink division might become an IPO. Musk has said this could happen once Starlink generates stable revenue.


4. Investing in SpaceX Competitors and Partners

Investors can also consider companies that operate in the same industry or collaborate with SpaceX.

  • Tesla Inc. (TSLA): While not directly involved in space exploration, Tesla shares Elon Musk's leadership and technological innovation ethos.

  • Virgin Galactic Holdings Inc. (SPCE): Focuses on space tourism and suborbital flights.

  • Rocket Lab USA Inc. (RKLB): Provides launch services and satellite solutions, positioning itself as a competitor in the small satellite launch market.


Considerations and Risks


  • Liquidity Constraints: Investments in private companies are less liquid, meaning they can't be easily sold or exchanged for cash.

  • Valuation Uncertainty: Private company valuations are not subject to the same scrutiny as public companies, leading to potential discrepancies.

  • Market Volatility: Investments in funds or companies with SpaceX exposure can be affected by broader market fluctuations.


Conclusion


In conclusion, investing in SpaceX directly remains a challenge for most individuals due to its private status. However, through secondary marketplaces, investment funds, and indirect investments in companies with SpaceX holdings, investors can gain exposure to the company's growth.


By understanding the available options and associated risks, investors can make informed decisions aligned with their financial goals.


Disclaimer: This material is for general information purposes only and is not intended as (and should not be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by EBC or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.

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