Spacex Investors: Fidelity Funds And Their Interests Explored

SpaceX, or Space Exploration Technologies Corp., is a space transportation services company founded by entrepreneur Elon Musk in 2002. The company is not publicly listed, so investors cannot buy shares directly. However, investors can gain exposure to SpaceX's business by buying shares in companies that are its suppliers or partners. Fidelity Funds is one such investment company that offers mutual funds with exposure to SpaceX stock. These include the Fidelity Contrafund, Fidelity OTC Portfolio, Fidelity Blue Chip Growth Fund, and Fidelity Growth Company Fund. SpaceX is funded by 82 investors, with Alpha Dhabi and International Holding Company being the most recent.

Fidelity funds that hold SpaceX stock

SpaceX, or Space Exploration Technologies Corp., is a company founded by billionaire Elon Musk in 2002. It is valued at over $100 billion and has accomplished several firsts in its industry, including launching, orbiting, recovering, and reusing the same rocket. SpaceX is not a publicly listed company, so investors cannot buy shares directly. However, Fidelity offers investment in SpaceX through various funds. Here are the details:

• Fidelity Contrafund – This fund has invested $43,239,334 in SpaceX, making it one of the largest investors.
• Fidelity OTC Portfolio – This fund has around $4,805,386 invested in SpaceX, representing 0.036% of the fund.
• Fidelity Blue Chip Growth – With an investment of approximately $7,535,076, this fund has a slightly higher allocation to SpaceX, at 0.037%.
• Fidelity Advisor New Insights – This fund has invested $11,251,375 in SpaceX, but the exact percentage is unknown.
• Fidelity Growth Company Fund – This fund is closed to new investors and has $16,752,739 invested in SpaceX, amounting to 0.037% of its portfolio.

Other Ways to Invest in SpaceX

While SpaceX is a private company, there are alternative ways to gain exposure to its business:

• Indirect Investments – Invest in public companies in the same sector, synergistic companies or suppliers, or companies with significant investments in SpaceX. For example, Fidelity and Bank of America are listed as investors in SpaceX.
• ETFs and Mutual Funds – Consider ETFs such as Direxion Daily Aerospace & Defense Bull 3X Shares (DFEN) or ARK Space Exploration & Innovation ETF (ARKX), which invest in space technology companies.
• Index Funds – Invest in index funds containing Tesla, such as the Vanguard 500 Index Fund (VFIAX) or Fidelity MSCI Consumer Discretionary Index ETF (FDIS).

Risks and Considerations

It is important to note that investing in private companies like SpaceX comes with larger risks, substantial minimum investment requirements, and restrictions on buying and selling shares. Additionally, SpaceX has not announced any plans to go public, so direct investment may not be an option anytime soon.

SpaceX's business lines

SpaceX is an American spacecraft manufacturer, launch service provider, and satellite communications company. It was founded by Elon Musk in 2002 with the goal of reducing space transportation costs and developing a sustainable colony on Mars. SpaceX has several business lines, including:

• Spacecraft manufacturing: SpaceX designs, manufactures, and operates rockets and spacecraft, including the Falcon 9, Falcon Heavy, and Dragon. It also manufactures and operates the Starlink satellite constellation, which provides global broadband internet service.
• Launch services: SpaceX provides launch services for commercial, government, and military customers. It has launched satellites, cargo, and crew to various orbits, including the International Space Station.
• Satellite communications: SpaceX's Starlink subsidiary became the largest satellite constellation in January 2020 and now comprises more than 6,000 small satellites in orbit. Starlink provides high-speed internet services to customers worldwide.
• Space transportation cost reduction: SpaceX aims to decrease the cost and improve the reliability of access to space by a factor of ten. It has achieved this through vertical integration, the use of inexpensive commercial off-the-shelf components, and the modular approach of modern software engineering.
• Space exploration and colonisation: SpaceX is developing the Starship launch system, a fully reusable, super heavy-lift launch vehicle capable of interplanetary and orbital spaceflight. The company also intends to develop a sustainable colony on Mars.
• Engine development: SpaceX has developed several rocket engines, including the Merlin, Kestrel, and Raptor, as well as the Draco and SuperDraco engines for the Dragon spacecraft.
• Space technology development: SpaceX has designed spacesuits for use inside the Dragon spacecraft and during extravehicular activities. It also sponsors a Hyperloop competition to encourage innovation in high-speed transportation systems.
• Space-based missile defence systems: SpaceX designs and launches custom military satellites for the Space Development Agency as part of a missile defence system in low Earth orbit.

SpaceX's private shares

SpaceX, or Space Exploration Technologies Corp, is a private company and its shares are held by its founders, management, employees, venture capital funds, or other private individuals and institutional investors. SpaceX stock does not trade publicly on major stock exchanges like the New York Stock Exchange (NYSE) or Nasdaq Stock Exchange, so retail investors cannot buy shares through their brokerage accounts.

However, accredited investors can sometimes buy shares of the company on a secondary platform. 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.

As of mid-2024, SpaceX didn't have an initial public offering (IPO) on the calendar and had no plans to go public. However, there is speculation that the company will take its Starlink satellite internet business public.

SpaceX is valued at over $210 billion as of mid-2024, making it one of the most valuable private start-ups in the world. The company was founded by Elon Musk in 2002 to reduce space transportation costs so humanity could eventually colonize Mars. SpaceX has achieved several firsts, including being 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 and generates revenue through commercial and government contracts. 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.

Indirect investment in SpaceX

SpaceX is a private company, so investors cannot buy shares directly from the company. However, there are several ways to indirectly invest in SpaceX.

Firstly, investors can gain exposure to SpaceX's business by buying shares in companies that are its suppliers or partners. For example, Iridium Communications is a company that may be a partner or supplier to SpaceX. Additionally, investors can buy stocks of other listed companies in the aerospace and defence sector. ETFs such as the Direxion Daily Aerospace & Defense Bull 3X Shares (DFEN), ARK Space Exploration & Innovation ETF (ARKX), and iShares U.S. Aerospace & Defense ETF (ITA) have investments in space technology companies.

Secondly, investors can look for public companies in the same sector as SpaceX, such as The Boeing Company, Lockheed Martin Corporation, Raytheon Technologies Corporation, and Howmet Aerospace Inc. These companies are the most widely held space technology stocks at hedge funds, according to Insider Monkey.

Thirdly, investors can consider synergistic companies or suppliers to SpaceX. Companies that may fall into this category include Iridium Communications.

Lastly, investors can identify public companies that are key investors in SpaceX and make an investment in them as a proxy. For example, Fidelity and Bank of America are listed as investors in SpaceX, with the rest being private venture firms.

SpaceX's major investors

SpaceX, or Space Exploration Technologies Corp., was founded in 2002 by billionaire Elon Musk. It is a unique company with exciting prospects, including plans to transport people to Mars. SpaceX is a private company valued at over $100 billion and has around 9,000 employees.

SpaceX is funded by 82 investors, with Alpha Dhabi and International Holding Company being the most recent. SpaceX has a post-money valuation of over $10 billion as of August 25, 2021. The company is primarily funded (around 85% funded by the federal government through NASA awards), with the remaining 15% coming from Elon Musk and other private investors.

Fidelity and Bank of America are two of the most well-known investors in SpaceX, with the rest being private venture firms. SpaceX stock is available through five Fidelity funds:

• Fidelity Contrafund
• Fidelity OTC Portfolio
• Fidelity Blue Chip Growth
• Fidelity Advisor New Insights
• Fidelity Growth Company Fund

The above funds offer varying levels of exposure to SpaceX stock, ranging from 0.036% to 0.039%.

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