Should I invest in SpaceX stock?

Finance & Economy

As mentioned in an article on Blue Origin stocks, we are often asked what we think of investing in space and how to invest SpaceX stocks or space company securities in general.

First of all: The future of the telecommunications and space industry seems to be thanks to innovative ideas two great visionaries to be very promising. Visionaries like Jeff Bezos and Elon Muskwho spare no expense to bring their projects to the top. Here you can find out what SpaceX and Starlink exactly are and how to get hold of SpaceX shares and other space securities.

What is SpaceX or Starlink?

SpaceX - that's what it's called Space and telecommunications company which was founded by Tesa boss and multi-billionaire Elon Musk. One of the company's goals is to have a huge Satellite network called Starlink to bring fast broadband internet to every corner of the world. The SpaceX also wants the Revolutionize the space industry. In the future, SpaceX aims to develop orbital launch vehicles and technology that will one day enable humanity to colonize Mars.

Elon Musk has proven several times in the past that one of his strengths is overcoming technological hurdles. Neuralink and Tesla are the best evidence that the visionary is not afraid of very grand goals. Tesla's success story is causing its stock to skyrocket and demand for one SpaceX share is getting bigger every day.

But Musk is not the only rich visionary who wants to reach for the stars. Jeff Bezos also founded his own space company called Blue Origin, with which he wants to compete with Musk for supremacy in space.

Recycling of SpaceX missiles is essential

The Tesla CEO laid an extremely important foundation stone for the space industry. His biggest coup so far with SpaceX: he managed to successfully land a rocket again. By recycling expensive technology, SpaceX saves huge costs. Costs that would otherwise have become too big a hurdle and would have severely impaired a successful space industry.

The use of reusable missiles has been a revolution and so far SpaceX is the only company to offer this opportunity. In the meantime, even the American space agency NASA SpaceX uses rockets for its space missions. This made it possible again for NASA to use American technology instead of having to rely on Russian technology. That was of course also important for American prestige.

Potential for SpaceX shares

A SpaceX share is currently not tradable, but there are rumors that an IPO is already in progress. Another problem is that the potential customers are currently not really numerous. Therefore, work is being done to significantly expand the number of business areas and increase reliability so that tourists can travel to space with SpaceX in the near future.

One advantage is that SpaceX currently appears to be the cost leader in the rocket space. Another advantage is that investors have great confidence in Elon Musk as an entrepreneur. If, in addition to satellites and astronauts, one should soon be able to bring a large number of tourists safely into space, there is in principle hardly anything in the way of an IPO of the SpaceX share.

In addition, Elon Musk and his company are planning to launch a network of satellites into space that will provide high-speed internet across the board. If this is actually implemented, SpaceX or Starlink services may actually be available to a huge number of customers, which should make the company relatively independent of the missiles' service.

SpaceX on the road to success

After SpaceX was ridiculed by many at the beginning and a rocket that returns to a desired location by itself was dismissed as impossible, SpaceX has now taught all of its critics wrong. Now it's a matter of making the company profitable and exploring new limits. It is important to make a SpaceX share interesting for investors as well. So far it seems to be more of a private Elon Musk project. But as you have seen at Tesla, he is by no means averse to the stock market.

After SpaceX is now known as the Space service provider established, it's about breaking new boundaries. With the NASA you have been able to convince a reliable customer to commit to SpaceX in the long term. Currently, practically all NASA missions to the ISS are carried out with the rockets from Elon Musk. But also in the transport of satellites into orbit one could win numerous customers.

Now it is a matter of opening up new business areas and making the SpaceX share fit for a possible IPO. Above all, one relies on the potential of one tourist use of space flights and, as the latest project, a trip and Landing on Mars.

Buy SpaceX stock

If you feel like buying SpaceX shares now, you unfortunately have to be patient at the moment. Elon Musk is currently financing the SpaceX and Starlink project from his own assets. He explained that he currently still has sufficient capital. Presumably, the company is also becoming more and more profitable. Therefore, Elon Musk currently sees no great need to list a SpaceX share on the stock exchange.

Tesla has shown that he is not averse to the stock market. Perhaps he's just working to make a potential SpaceX share interesting for investors, especially since the number of potential customers of the company has so far been relatively small. So there is definitely still potential here for the future of the company. The first attempt to bring tourists into space has already been made. According to a statement from SpaceX, it is slated to launch a mission in the fourth quarter of 2021 to launch tourists into space using SpaceX rockets for the first time.

Buy shares in other space companies

SpaceX may be the shining star in the space sky right now - but it is by no means the only company active in this industry. Since a SpaceX share is not yet available, it makes perfect sense to look at other companies in the industry and look at their performance.

In principle, companies like this are here Lockheed Martin or Aerojet Rocketdyne to call. Also Boeing and Airbus have already published visions of space projects several times and should SpaceX set up a successful business model, competition will quickly try to establish itself in this market. The same thing happened at Tesla and the production of electric cars.

Another pioneer who has been working to get tourists into space for some time is Virgin CEO Richard Branson with his company Virgin Galactic. Virgin Galactic is already on the stock exchange and the share has also developed very positively lately. Virgin Galactic also has its own spacecraft and aircraft for space tourism. Is that a possible competitor for SpaceX? The price for a space flight at Virgin Galactic is said to be in the range of $ 20,000. Another competitor is Blue Origin by Jeff Bezoz.

Which broker is interesting?

There are now many good brokers, such as Traderepublic, Smartbroker or our partner FxFlat.

FXFlat Wertpapierhandelsbank GmbH is an online broker based in Ratingen, Germany. Originally started as a CFD and Forex broker, FXFlat now offers you the full range of asset classes and financial instruments, including stocks, bonds, futures and ETFs. With more than 135 exchanges worldwide, more markets are now available to you than ever before in FXFlat history. You can also use FXFlat to open an account in the USA with Interactive Brokers LLC.

FXFlat has been supervised by BaFin for over 20 years and is characterized by a wide range of products with very favorable conditions. Thus, FXFlat Wertpapierhandelsbank GmbH has not only received multiple awards from the press, but also from customers, as the evaluation portal ekomi shows (4.8 / 5). The company is ranked number 1 at the German Customer Institute and has the highest score of all CFD brokers tested as “Best CFD Broker 2020” (grade 1.2).

SpaceX shares for the future?

Elon Musk is one of the best and most fascinating entrepreneurs of our time. Apparently all of his projects are a sensational success and the investors seem to be eating out of his hand. It looks like SpaceX and Starlink are also doing very well, and companies that have been established for decades and who scoffed at their competitors just a few years ago are seeing their customers fly away. The situation is similar with SpaceX and Starlink, which, for example, are already putting Deutsche Telekom under considerable pressure. Should Starlink actually establish itself as a global Internet provider, many Internet providers who have to deal with expensive infrastructure and slow bureaucracy will certainly have nothing more to laugh about. That means that SpaceX stock could also have a great future ahead of it.