You would have to go back quite some time to find an initial public offering (IPO) as anticipated as SpaceX’s. The aerospace company is looking to IPO this summer with around a $1.75 trillion valuation (the highest in IPO history). How much it ultimately fetches will depend on the market, but the lead-up has sparked significant investor interest.
Unless you’re an institution or “accredited investor,” you can’t buy shares of SpaceX on the stock market before its IPO. However, there are a few different ways to get exposure to it right now, before its IPO.
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Invest in a company with a stake in SpaceX
The best way for the average investor to get exposure to SpaceX before its IPO is to invest in a company that owns shares in it. Google parent Alphabet(NASDAQ: GOOG)(NASDAQ: GOOGL) is a good option because it reportedly owned 6.11% of SpaceX at the end of 2025.
In January 2015, Alphabet invested $900 million in SpaceX as part of a $1 billion package with Fidelity. At the time, SpaceX was valued at around $12 billion, and Alphabet’s initial stake was around 7%. Its stake has since been diluted — especially after SpaceX and xAI merged in February — but 6% is still a sizable holding.
There are plenty of reasons to invest in Alphabet aside from its stake in SpaceX, but knowing that Alphabet’s investment could be worth around $105 billion if SpaceX fetches its record-breaking valuation is encouraging at a time when Alphabet is increasing its spending to keep up in the AI arms race.
EchoStar(NASDAQ: SATS) is a key partner of SpaceX that is planning to sell the company spectrum licenses that provide crucial frequencies that SpaceX’s Starlink relies on.
As part of the agreement — which is awaiting regulatory approval — EchoStar will gain millions of SpaceX shares. The EchoStar/SpaceX deal is expected to be approved in the first half of this year. The market is optimistic that it will go through. In the past 12 months, EchoStar’s stock is up 420% (as of April 24), largely because of its relationship with SpaceX.
There are funds that contain SpaceX shares
No fund has a higher allocation to SpaceX than the Baron Partners Fund(NASDAQMUTFUND: BPTRX). As of March 31, 33% of the mutual fund was in SpaceX. Tesla accounts for 20%. The fund has a minimum initial investment. It’s either $2,000 or $500 if you set up automatic investments.
Ark Venture Fund(NASDAQMUTFUND: ARKVX) has 17% of its holdings in SpaceX. It’s an “actively managed closed-end interval fund that seeks long-term growth of capital by investing both private and public equities securities of companies that are relevant to the Fund’s investment theme of disruptive innovation.” It has a $500 minimum initial investment, but one key thing to note is that there are specific windows every quarter where the fund repurchases up to 5% of its outstanding shares. If you miss that window, you’ll need to wait until the next one to sell shares.
Destiny Tech100(NYSE: DXYZ) is 32 companies into its mission of having a portfolio of “100 of the top venture-backed private tech companies.” SpaceX is one of those companies, accounting for 16% of the fund. This is a closed-end management investment company. As with all investments, potential investors will need to dig into fees and other information before making a decision.
Should you wait until SpaceX’s IPO before investing?
If you want to invest in SpaceX as directly as possible, then waiting until its IPO is the route to take. However, if you’re looking to gain exposure to SpaceX without waiting to buy its shares on the market, going through Alphabet is likely the most direct (and beneficial) route among the options above.
SpaceX’s stock will inevitably be volatile in the time after its IPO, especially with the high valuation it’s aiming for. By investing in Alphabet, you get a trifecta: SpaceX exposure, shares of one of the best tech companies in the world, and a shield from the volatility or potential struggles of SpaceX’s stock early on.
The funds are good options if you want exposure, but the mutual funds aren’t as straightforward to buy as your typical exchange-traded fund. Realistically, though, most investors are better off waiting until SpaceX’s IPO to invest in the company directly.
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Stefon Walters has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet and Tesla. The Motley Fool has a disclosure policy.
