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The entrepreneur Elon Musk founded Space Exploration Technologies Corp., or SpaceX, in 2002 to reduce space transportation costs so humanity could eventually colonize Mars. While Musk's ultimate dream for the company has yet to become a reality, SpaceX has become one of the world's most valuable start-ups. As of mid-2025, it was valued at $400 billion.
SpaceX has been a groundbreaking company over the years. It was the first private company to develop a liquid-propellant rocket that reached orbit, the first to send astronauts to the International Space Station, and the first to achieve a vertical propulsive landing.
SpaceX has a growing commercial operation. It develops and manufactures spacecraft, provides launch services, and operates a commercial satellite-based internet service from its Starlink satellites.
The company is growing increasingly valuable as its revenues and profits soar. Many retail investors are likely wondering when they'll get their chance to invest in the company. Here's a look at what to consider if that opportunity ever arises.
SpaceX doesn't trade publicly on major stock exchanges like the New York Stock Exchange (NYSE) or Nasdaq stock exchange. So, retail investors can't buy shares of the space exploration company through their brokerage accounts.
Musk controls the company and owns a significant stake. It's one of Musk's top investments, with reports estimating that he holds more than 40% of its shares. Employees and venture capital investors own the rest of the company's outstanding shares.
As of mid-2025, SpaceX didn't have an initial public offering (IPO) on the calendar and had no plans to go public. Musk has said in the past that SpaceX doesn't need to raise capital to finance its investment programs, so it doesn't need to complete an IPO to bring in money from outside investors to finance growth.
Meanwhile, the company has an active internal trading program to allow employees and existing investors to sell shares. In mid-2025, SpaceX was working on an agreement to enable employees to sell their shares at a $400 billion valuation, a 16% increase in the past six months. These negotiated sales provide employees with liquidity for their shares so that the company wouldn't need to complete an IPO to allow insiders to sell shares.
There has been some speculation that the company will take its Starlink satellite internet business public. However, Musk has thrown cold water on this idea. He has said he wants Starlink to achieve smooth and predictable revenue growth and cash flow before it goes public.
There are lots of reasons why you'd want to consider investing in SpaceX if it decides to complete an IPO. Some reasons to invest in SpaceX are its innovative technology, Starlink’s revenue potential, its first-mover advantage in the space sector, and a desire to speculate on a potential post-IPO price spike.
Because SpaceX isn't publicly traded, investors can't buy shares through their brokerage accounts. However, some investors can still buy shares through other platforms that offer secondary trading of pre-IPO companies.
For example, Rainmaker Securities is a platform that makes private securities transactions possible. It lets institutions and accredited investors (i.e., high-net-worth individuals or people with a high income) buy and sell shares of privately held companies.
Since most investors don't meet the accreditation qualifications, they can't buy shares of SpaceX directly until it goes public. However, they do have options to consider.
For example, the ARK Venture Fund (NASDAQMUTFUND:ARKV.X), a public venture capital fund, held shares of SpaceX and several other private companies. Investors interested in getting in on the ground floor of some top pre-IPO companies should check it out.
Another option is to invest in some of the top space stocks to gain exposure to the markets SpaceX seeks to capture.
L3Harris Technologies (NYSE:LHX) is a leading defense contractor. It provides technology solutions across space, air, land, sea, and cyber. The company provides a variety of space solutions and capabilities, including solid rocket motors, responsive launch solutions, satellite technology, and deep space exploration engine capabilities.
Rocket Lab (NASDAQ:RKLB) is an integrated space company founded in 2006. It provides government and commercial customers with launch services, spacecraft manufacturing, satellite components, and on-orbit management solutions.
The company started out focusing on small launch capabilities, developing the Electron launch vehicle, which is now the second-most frequently launched U.S. rocket. It's currently developing Neutron, a larger, next-generation launch vehicle. Rocket Lab has also invested in diversifying its operations into additional space-related solutions.
Virgin Galactic Holdings (NYSE:SPCE) is an aerospace and space travel company founded by well-known entrepreneur Richard Branson. It pioneered human spaceflight for private individuals and researchers.
The company went public in 2019 when it merged with a special purpose acquisition company (SPAC) run by famous investor Chamath Palihapitiya. After many delays, the company launched its first test spaceflight in 2021. It finally launched commercial services for scientific research in 2023. Virgin Galactic plans to launch a new class of spaceships for commercial space tourism services by the fall of 2026.
Another alternative to consider for investors interested in SpaceX stock is an exchange-traded fund (ETF) focused on the space sector. As of mid-2025, three ETFs focused on this sector:
There are several potential pros and cons of investing in SpaceX stock. Some of the benefits are:
On the other hand, some potential risks of investing in SpaceX are:
Although most investors can't buy shares of SpaceX yet, people interested in the company must consider a couple of crucial aspects before buying shares (assuming it eventually completes an IPO). Two of the most important are profitability and valuation. Here's a closer look at these two critical investment factors.
Since SpaceX isn't publicly traded, it isn't required to disclose its financial results. However, given the company's popularity, it has revealed some financial data.
A report by the Wall Street Journal in mid-2025 highlighted the financial strength of SpaceX. It noted that the company was on track to generate $16 billion of revenue for the year. Further, it was sitting on more than $3 billion of cash at the time. The company's strong revenue and cash positions enabled it to expand without needing to raise new capital from investors. A big driver of SpaceX's financial strength is Starlink, which doubled its revenue in 2024 to $2.7 billion.
If SpaceX can continue growing its revenue and profitability at high rates, its stock will have the fuel to skyrocket in the future.
Valuation is another crucial factor investors should consider before buying any stock. Paying too high a price could cause them to lose money, even if profits take off.
As of mid-2025, SpaceX's private market valuation was approaching $400 billion based on a potential share sale the company was working on for employees.. That was 14% higher than its valuation at the beginning of the year. That makes SpaceX more valuable than leading U.S. defense contractors Boeing (NYSE:BA), Lockheed Martin (NYSE:LMT), and Northrop Grumman (NYSE:NOC).
With the company on track to generate $16 billion of revenue in 2025, it trades at about 25 times sales. That's a hefty valuation.
SpaceX could grow into its valuation if its revenue and profits continue to skyrocket in the coming years. So, it could be trading at a more reasonable valuation if and when it goes public.
SpaceX isn't currently publicly traded, so most investors can't buy shares of Musk's space exploration company. However, the company or its Starlink satellite internet service business could eventually go public.
If that happens, interested investors should carefully consider the company's profitability and valuation because they will be key drivers of its stock price in the future. If both appear poised to skyrocket, the stock could also soar.
*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.
