Invest In Spacex: Fidelity's Guide To Private Space Exploration

SpaceX, or Space Exploration Technologies Corp., is an American space travel company run by Tesla CEO Elon Musk. SpaceX is a private company, so buying shares in it is not as straightforward as investing in publicly traded companies. However, there are a few ways to gain exposure to SpaceX as an investment. One way is through a fund or publicly traded company that owns SpaceX shares. Financial services provider Fidelity Investments is one notable entity that has invested in SpaceX. Fidelity has made several investment rounds in SpaceX, including a 2015 investment of about $1 billion, which gave it a stake of about 10% in SpaceX stock. As of April 2021, Fidelity has five funds that show SpaceX holdings, with each fund having roughly 0.04% of its assets in SpaceX. These funds include Contrafund, Fidelity OTC, Fidelity Advisor New Insights, Fidelity Blue Chip Growth, and Fidelity Growth Co.

SpaceX stock is available through five Fidelity funds: Contrafund, Fidelity OTC, Fidelity Advisor New Insights, Fidelity Blue Chip Growth, and Fidelity Growth Co

Fidelity Contrafund (FCNTX) is a growth and value stock fund that focuses on capital gains rather than income. As of April 2021, the fund had total assets of $131.82 billion invested across 393 different securities, with almost $44 million invested in SpaceX. The fund has a 5-year return of 19.14% and a 10-year return of 15.12%.

Fidelity OTC Portfolio Fund falls under Morningstar's large growth category and typically invests more than 80% of its portfolio in stocks traded on the Nasdaq composite index and other over-the-counter markets. More than 25% of the fund is allocated to the technology sector. As of April 2021, the fund had total assets of at least $26.99 billion invested in 179 holdings, with almost $5 million invested in SpaceX. The fund has a 5-year return of 26.21% and a 10-year return of 18.78%.

Fidelity Advisor New Insights Fund falls under the large-cap category and has total assets of almost $24.15 billion invested in 452 different securities, with about $11 million invested in SpaceX. The fund's largest holding is in the Information Holding sector. The fund has a 3-year return of 15.24%.

Fidelity Blue Chip Growth Fund focuses on long-term capital growth, with 80% of its assets invested in blue-chip stocks. As of April 2021, the fund had total assets of $50.73 billion invested in 546 holdings, with about $7 billion invested in SpaceX. The fund has a 5-year return of 26.73% and a 10-year return of 19.2%.

Fidelity Growth Company Fund operates within the large-cap growth category. The fund has total assets of $60.60 billion invested in 566 different securities, with almost $17 million invested in SpaceX. The fund focuses on high-growth stocks, particularly in the healthcare and technology sectors. The fund has a 5-year return of 28.32% and a 10-year return of 19.92%.

SpaceX stock makes up a very small percentage of each fund, ranging from 0.036% to 0.04%

• Fidelity Contrafund (FCNTX): 0.038%
• Fidelity OTC: 0.036%
• Fidelity Advisor New Insights: 0.039%
• Fidelity Blue Chip Growth: 0.037%
• Fidelity Growth Company Fund: 0.037%

Fidelity has made several investment rounds in SpaceX, with its earliest reported investment coming in 2015 when it joined Alphabet Inc. (Google's parent company) to invest about $1 billion in the business. This gave the two companies a combined stake of about 10% in SpaceX.

Fidelity runs a portfolio of funds that invest in public and private stocks, so investors interested in SpaceX can gain exposure to the company indirectly through these mutual funds. It is important to be aware of the costs associated with investing in mutual funds, such as expense ratios and load fees.

SpaceX is a private company, so buying shares isn't straightforward

SpaceX is a private company, so buying shares is not straightforward. You can't buy the stock through your regular broker, and you need to be what's known as an 'accredited investor' to participate in the private investing market. This means having a fortune of more than $1 million or an annual income of over $200,000. You also need to be 'sophisticated', i.e., have professional knowledge and experience in investing.

For ordinary investors, the only viable route to getting exposure to SpaceX as an investment is through a fund or publicly traded company that owns SpaceX shares. Financial services provider Fidelity and Google parent Alphabet are the two notable entities that have invested in SpaceX.

Fidelity has made several investment rounds in SpaceX, the earliest reported being in 2015 when it joined Alphabet to inject about $1 billion into the business. The investment gave Fidelity and Alphabet a combined stake of about 10% in SpaceX stock. Fidelity also participated in a 2020 SpaceX investment round that raised about $2 billion for the space venture.

Fidelity runs a portfolio of funds that invest in public and private stocks. Investors can gain exposure to SpaceX indirectly through Fidelity mutual funds. When investing in mutual funds, be aware of the costs as the expense ratio usually applies to fund investments. Some funds charge a load fee when you buy or sell their shares.

Google's stake in SpaceX makes some strategic sense given its other high-tech investments. It's unclear whether Alphabet's holding has been diluted by subsequent funding rounds, but its investment has certainly appreciated as SpaceX's valuation has soared. Investors can gain exposure to SpaceX directly through Alphabet stock.

Other SpaceX investors include Peter Thiel's Founders Fund, Valor Equity Partners, and Baillie Gifford. Thiel and Fidelity also invested in Facebook while it was still a private company. Platforms like Forge Global and EquityZen enable investors to purchase pre-IPO stocks from insiders.

You can gain exposure to SpaceX through a fund or publicly traded company that owns SpaceX shares, such as Fidelity or Google

SpaceX, or Space Exploration Technologies Corp., is an American space travel company run by Tesla CEO Elon Musk. SpaceX is a private company, so you can't buy its stock through a regular broker. However, there are indirect ways to gain exposure to SpaceX through funds or publicly traded companies that own SpaceX shares. Here's how:

Fidelity Funds

Fidelity, a financial services provider, has its own mutual funds that hold stakes in SpaceX. As of April 2021, there were five Fidelity funds that showed SpaceX holdings:

• Fidelity Contrafund (FCNTX): A growth and value stock fund focusing on capital gains. It has total assets of $131.82 billion invested across 393 different securities, with almost $44 million invested in SpaceX.
• Fidelity OTC Portfolio Fund: This fund falls under Morningstar's large growth category and usually invests more than 80% of its portfolio in stocks traded on the Nasdaq composite index and other over-the-counter markets. It has total assets of at least $26.99 billion, with almost $5 million invested in SpaceX.
• Fidelity Advisor New Insights Fund: A large-cap fund with total assets of nearly $24.15 billion invested in 452 different securities, with about $11 million invested in SpaceX.
• Fidelity Blue Chip Growth Fund: This fund focuses on long-term capital growth, with 80% of its assets invested in blue-chip stocks. It has total assets of $50.73 billion, with about $7 billion invested in SpaceX.
• Fidelity Growth Company Fund: A large-cap growth fund with total assets of $60.60 billion invested in 566 different securities, with almost $17 million invested in SpaceX.

Google Stock

Another indirect way to invest in SpaceX is by purchasing stock in Google (now Alphabet). In 2015, Google and Fidelity teamed up to invest a combined $1 billion in SpaceX, collectively owning about 10% of the company. While there is no evidence that Google has sold its stake, its share of SpaceX's total value has likely decreased over time.

Other Options

Other notable entities that have invested in SpaceX include Peter Thiel's Founders Fund, Valor Equity Partners, and Baillie Gifford. Baillie Gifford has two trusts that offer investors the opportunity to indirectly hold stakes in SpaceX: the Scottish Mortgage Investment Trust and the US Growth Trust. These shares trade on the London Stock Exchange.

SpaceX is focused on developing advanced rockets and spacecraft, with a mission to cut space travel costs and facilitate the colonization of Mars

SpaceX, the brainchild of entrepreneur Elon Musk, has been at the forefront of the commercial space industry revolution, with a particular focus on developing advanced rockets and spacecraft. The company's overarching mission is to reduce space travel costs and facilitate the ambitious goal of colonizing Mars.

SpaceX's innovative approach to rocket design and its commitment to reusability have significantly lowered launch costs, making space exploration more accessible and affordable. The company's flagship Falcon 9 rocket, for instance, offers a cost-effective launch option with a reusable first stage that can land vertically, reducing expenses per mission. This has disrupted the market, forcing competitors to innovate and driving down prices across the sector.

The Falcon Heavy rocket, introduced in 2018, further showcases SpaceX's capabilities. With the ability to lift over 63 metric tons to low Earth orbit, it is ideal for heavy payloads and deep space missions. The company's focus on reusability is not just about reducing costs; it also offers environmental benefits by reducing space debris and limiting the need for new rocket manufacturing.

Looking to the future, SpaceX's Starship project is a fully reusable launch system designed for missions such as orbital launches, lunar landings, and eventually, Mars colonization. The Starship spacecraft is key to the company's plans for reaching the Red Planet, with the ability to transport up to 100 passengers or 100 tons of cargo. The long-term vision is to establish a self-sustaining city on Mars, requiring the launch of thousands of Starships over several decades.

While the colonization of Mars may seem like a distant dream, SpaceX has already achieved several milestones, including becoming the first private company to launch, orbit, and recover a spacecraft in 2010. The company has also successfully launched astronauts to the International Space Station (ISS) and collaborated with NASA and other international space agencies, reducing costs for orbital missions. With its advanced rockets, spacecraft, and focus on cutting space travel costs, SpaceX is well-positioned to play a pivotal role in the future of space exploration and the potential colonization of Mars.

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