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 late 2025, it was valued at $400 billion. It has been reported that SpaceX will pursue an IPO by mid-to-late 2026, although the timing could change based on several factors.
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.
Is SpaceX publicly traded?
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.
Outstanding Shares
Will SpaceX IPO?
As of late 2025, SpaceX announced that it will be pursuing an initial public offering (IPO) in 2026. Although an IPO may occur in 2026, the timing could change depending on market conditions and other factors, pushing it into 2027.
Meanwhile, the company has an active internal trading program to allow employees and existing investors to sell shares. In late 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.
Is SpaceX profitable?
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 late 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.
Alternatives to SpaceX
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.
High Net-Worth Individual (HNWI)
Exchange-Traded Fund (ETF)
- ARK Space Exploration & Innovation ETF (NYSEMKT:ARKX): The fund, actively managed by Cathie Wood, focuses on companies engaged in space exploration and innovation, aiming for between 35 and 55 holdings. It has a reasonable ETF expense ratio of 0.75%. As of late 2025, the ETF had more than $440 million in assets under management (AUM). Rocket Lab and L3Harris Technologies were among its top holdings (largest and eighth-largest in mid-2025, at 10.3% and 4.9% of its net assets, respectively).
- Procure Space ETF (NASDAQ:UFO): The ETF owns shares of companies involved in space-related industries. Although tiny (roughly $115 million in AUM as of late 2025), it also has a 0.75% expense ratio. It had 44 holdings, including Rocket Lab USA (the second-largest, at 6.1% of its assets).
- SPDR S&P Kensho Final Frontiers ETF (NYSEMKT:ROKT): This passively managed fund focuses on companies that make products or provide space travel and exploration services. The tiny ETF had only about $32 million in AUM and a 0.45% gross expense ratio as of late 2025. The fund held around 30 stocks, including Rocket Labs (largest, at 5.2% of its assets).
Benefits and Risks of Buying SpaceX Stock
There are several potential pros and cons of investing in SpaceX stock. Some of the benefits are:
- The potential for significant price appreciation.
- The ability to invest in the final frontier of outer space.
- The potential of investing in a company delivering skyrocketing revenue and profitability.
- The ability to invest in another company led by Elon Musk.
On the other hand, some potential risks of investing in SpaceX are:
- It trades at a high valuation, which would likely only increase in the immediate aftermath of an IPO.
- Shares of the space company could be very volatile.
- Elon Musk's political views could affect the company's ability to win government contracts.
What is SpaceX's valuation?
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 late 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 (BA -0.59%), Lockheed Martin (LMT -4.78%), and Northrop Grumman (NOC -4.88%).
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.
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The bottom line on SpaceX
SpaceX isn't currently publicly traded, so most investors can't buy shares of Musk's space exploration company. However, there have been reports that the company will go public in 2026.
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.
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