Share This Article

Facebook LinkedIn
Twitter Reddit
Print Email
Pinterest Gmail
Yahoo
Money Morning
×
  • Invest
    • Best Stocks to Buy
    • Stock Forecasts
    • Stocks to Sell Now
    • Stock Market Predictions
    • Technology Stocks
    • Best REITs to Buy Now
    • IPO Stocks
    • Penny Stocks
    • Dividend Stocks
    • Cryptocurrencies
    • Cannabis Investing
    • Angel Investing
  • Trade
    • How to Trade Options
    • Best Trades to Make Now
    • Options Trading Strategies
    • Weekly Trade Recommendations
  • Retire
    • Income Investing Guide
    • Retirement Articles
  • More
    • Money Morning LIVE
    • Special Investing Reports
    • Our ELetters
    • Our Premium Services
    • Videos
    • Meet Our Experts
    • Profit Academy
Login My Member Benefits Archives Research Your Team About Us FAQ
  • Invest
    • Best Stocks to Buy
    • Stock Forecasts
    • Stocks to Sell Now
    • Stock Market Predictions
    • Technology Stocks
    • Best REITs to Buy Now
    • IPO Stocks
    • Penny Stocks
    • Dividend Stocks
    • Cryptocurrencies
    • Cannabis Investing
    • Angel Investing
    ×
  • Trade
    • How to Trade Options
    • Best Trades to Make Now
    • Options Trading Strategies
    • Weekly Trade Recommendations
    ×
  • Retire
    • Income Investing Guide
    • Retirement Articles
    ×
  • More
    • Money Morning LIVE
    • Special Investing Reports
    • Our ELetters
    • Our Premium Services
    • Videos
    • Meet Our Experts
    • Profit Academy
    ×
  • Subscribe
Enter stock ticker or keyword
×
Join 100,000+ Like-Minded Investors Today
Twitter
Tags: technology
Stocks: FPX, GOOGL, MTCH, SNAP, TSLA

What Is the SpaceX Valuation?

By Alex McGuire, Associate Editor, Money Morning • @AlexMcGuire92 • July 25, 2017

View Comments

Start the conversation

Comment on This Story Click here to cancel reply.

Or to contact Money Morning Customer Service, click here.

Your email address will not be published. Required fields are marked *

Some HTML is OK

During its last Series E funding round in January 2015, SpaceX raised $1 billion from six investors, primarily Alphabet Inc. (Nasdaq: GOOGL) and Fidelity Investments. That round of funding boosted the SpaceX valuation to $12 billion. And today we'll show you how to profit off the hype SpaceX is creating in the IPO market...

Since 2006, the aerospace firm has generated a total of $1.15 billion in funding over seven rounds. According to TechCrunch's research arm CrunchBase, these include five Series A through Series E rounds, as well as a $100,000 initial seed round from CEO Elon Musk and a $15 million round from an undisclosed venture capitalist.
That makes SpaceX the 10th highest-valued private company in the world, according to data compiled by The Wall Street Journal...

what is the spacex valuation

Despite its top 10 valuation and interest from private investors, Musk told a 2015 Tesla Inc. (Nasdaq: TSLA) shareholder meeting that SpaceX will remain private until 2020 at the earliest. But investors can start profiting from IPOs right now, including the SpaceX IPO when it eventually happens.

Before we show you this investment opportunity, here's the biggest reason why SpaceX has accrued $1.15 billion in investment over the last 11 years, raising its valuation to become the 10th biggest in the world...

Why the SpaceX Valuation Has Reached $12 Billion

Although the company has launched other big projects - including its new foray into the broadband satellite market - one of the primary reasons behind SpaceX's 11-year-long rise in funding since 2006 has been the unique ambition of Musk's long-term vision. He wants to eventually colonize Mars and create a multi-planet civilization for humans.

You see, Musk ultimately wants to use SpaceX's Falcon 9 rockets to send people to Mars for a realistically affordable price. The Falcon 9 is the company's signature model, which is currently used to send payloads and supplies to the International Space Station (ISS) orbiting the Earth.

Sign up for SMS so you never miss special events, exclusive offers, and weekly bonus trades.
One of Musk's initiatives is to make Mars travel more affordable. At the International Astronautical Congress in September 2016, Musk estimated a single ticket to Mars would cost around $10 billion - as much as purchasing two blocks of property in Midtown Manhattan.

Trending: Here's How Revenue Projections Could Affect the SpaceX Valuation

However, he also said he hopes to lower that ticket price to below $200,000. At the conference last September, he said achieving that lower cost would require "full [rocket] reusability," which is an initiative he's been having more success with this year...

And SpaceX is already making progress on Musk's reusable rocket goal.

On March 30, SpaceX successfully launched and landed its first reusable Falcon 9 booster - the rocket's primary engine responsible for lifting it into orbit. This made SpaceX the first aerospace company in history to launch and land a reused rocket.

Since then, Musk has been working to consistently recover and refurbish these boosters for cost-saving purposes. The company had two back-to-back launches of reusable boosters on June 23 and June 25. Although SpaceX doesn't publicly disclose the total Falcon 9 production cost, the company has said a Falcon 9 booster alone makes up roughly 70% of the total cost.

spacex valuationIf the company can start reusing boosters after each launch, it would cut the production cost by up to 70%. In turn, that would let Musk charge less for each ticket and get him closer to his goal of making Mars travel cost only $200,000 per person.

Whether or not SpaceX is able to achieve this goal before the IPO, investors are still eager to buy SpaceX stock when it starts trading. After all, investor interest is why the SpaceX valuation is $12 billion and why the firm has seen $1.15 billion in funding so far.

But you don't have to wait for the SpaceX IPO - which Musk says probably won't be until 2020 at the earliest - to profit from the excitement aroundĀ new IPOs...

According to Money MorningĀ Director of Technology & Venture Capital Research Michael A. Robinson - a 34-year veteran of Silicon Valley who's worked as a consultant for venture capital firms - there's a great way to profit from the IPO market in 2017.

In fact, this investment has handed investors a 13.1% return so far this year, beating the Dow Jones' 9.5% return. That means you can start profiting from IPOs right now, plus you'll gain exposure to SpaceX when it goes public.

One of the most important reasons we're recommending this investment is because it offers exposure to the IPO market without the risk of buying into an individual IPO. When companies go public, their stocks often experience volatility during their first few months on the market.

For example, Facebook Inc. (Nasdaq: FB) stock plunged 44% during its first three months of trading from May 2012 to August 2012. But since then, FB stock has skyrocketed 816% from $18 a share to $165 today.

Here's how you can make money from newly public companies, including SpaceX's eventual IPO, without the risk of buying in on day one...

The Best Way to Make Money from IPOs in 2017

Join the conversation. Click here to jump to comments…

Login
guest
guest
1 Comment
Oldest
Newest Most Voted
Inline Feedbacks
View all comments
George
George
5 years ago

I love how the article simply lacks the second part.

Also Falcon 9 will never send people to Mars and the booster is not an engine.

0
Reply


Latest News

June 8, 2023 • By Garrett Baldwin

Postcards - Pay Close Attention if This Stock Starts To Fall

June 8, 2023 • By Alex Kagin

Pre-Pandemic VIX Levels, Small-Cap Strength and Campbell Soup

June 7, 2023 • By Garrett Baldwin

There's an Expensive Food "Fire" Starting in America's Heartland
Trending Stories
ABOUT MONEY MORNING

Money Morning gives you access to a team of market experts with more than 250 years of combined investing experience – for free. Our experts – who have appeared on FOXBusiness, CNBC, NPR, and BloombergTV – deliver daily investing tips and stock picks, provide analysis with actions to take, and answer your biggest market questions. Our goal is to help our millions of e-newsletter subscribers and Moneymorning.com visitors become smarter, more confident investors.

QUICK LINKS
About Us COVID-19 Announcements How Money Morning Works FAQs Contact Us Search Article Archive Forgot Username/Password Archives Profit Academy Research Your Team Videos Text Messaging Terms of Use
FREE NEWSLETTERS
Total Wealth Research Power Profit Trades Profit Takeover Penny Hawk Trading Today Midday Momentum Pump Up the Close
PREMIUM SERVICES
Money Map Press Home Money Map Report Fast Fortune Club Weekly Cash Clock Night Trader Microcurrency Trader Hyperdrive Portfolio Rocket Wealth Initiative Extreme Profit Hunters Profit Revolution Quantum Data Profits Live Trading Alliance Trade The Close Inside Money Trader Expiration Trader Flashpoint Trader Darknet Hyper Momentum Trader Alpha Accelerators Weekly Profit Cycles Brutus Alerts Resource Traders Alliance

Ā© 2023 Money Morning All Rights Reserved. Protected by copyright of the United States and international treaties. Any reproduction, copying, or redistribution (electronic or otherwise, including the world wide web), of content from this webpage, in whole or in part, is strictly prohibited without the express written permission of Money Morning.

Address: 1125 N Charles St. | Baltimore, MD, 21201 | USA | Phone: 888.384.8339 | Disclaimer | Sitemap | Privacy Policy | Whitelist Us | Do Not Sell or Share My Personal Information

wpDiscuz