Elon Musk’s space exploration business, SpaceX, got a lot of headlines late last year when it was valued at $350 billion — a gain of more than $100 billion from its previous valuation, according to Morningstar. As Bloomberg reported, the new valuation came after SpaceX and its investors agreed to purchase as much as $1.25 billion worth of insider shares.
Even Musk, whose individual net worth is estimated at well more than $400 billion, sounded charged up about the news.
“What’s really crazy about this is that almost no investors wanted to sell shares even at a $350B valuation!” Musk wrote on X (formerly Twitter). “SpaceX reduced the amount of shares it bought back from employees in order to allow some new investors in.”
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If you want to be one of those investors, you need to either be very rich, run a major fund or company, or get creative. Unlike Tesla, SpaceX is privately held rather than publicly traded, so you can’t buy shares of the rocket and satellite maker on the stock exchanges. So is there a way to invest in the privately held company? Read on for more details.
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Private Shares
SpaceX does offer privately held stock, however. As of early December 2024, its private shares traded at $118.59 on the platform Forge Global, Morningstar reported.
But to get in on the action, you must qualify as an accredited investor. Among other things, this requires a net worth of $1 million — not including the value of your primary home — or an income of $200,000 in each of the last two years for individuals (or $300,000 jointly with a spouse).
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Indirect Investments
Another option is to invest in SpaceX indirectly. Certain venture capital funds that hold private shares of SpaceX are available to the public, The Motley Fool reported. Even this option has not been very accessible to anyone but the very wealthy. But that could change thanks to a recent partnership between financial technology company SoFi and Templum, an alternative investment fund platform.
As part of the partnership, SoFi will add three private market funds. One of them is the Cosmos Fund, whose purpose is to “hold only one investment” — SpaceX stock, according to The Motley Fool. Per a Templum press release, the goal of this partnership is to “democratize access to private markets.”
To invest through this option, you’ll have to be a SoFi member and an accredited investor. You’ll also need to make a minimum investment of $25,000. While that’s a tidy sum for many people, it’s still much more accessible than before.
If you aren’t an accredited investor, The Motley Fool recommended looking at the Ark Venture Fund, which is also accessible through SoFi. As of early December 2024, this fund had 12.4% of its assets invested in SpaceX. All SoFi brokerage clients have access.
Will SpaceX Go Public?
Meanwhile, if you’re waiting around for SpaceX to open its shares to the public through an initial public offering (IPO), you could be in for a long wait.
As Morningstar noted, private market investors are looking to get in on SpaceX’s reported capital raise that’s underway. As a result, the company filing an IPO to raise money on a public stock exchange is not as likely.
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This article originally appeared on GOBankingRates.com: Want To Invest In Elon Musk’s SpaceX? How To Get In on a Privately Held Company
