You have three options if you want to invest in SpaceX.
The IPO Roadshow starts June 4. And trading is expected to begin on June 12. That means there are only a few days left to secure shares – before the IPO.
I have a lot of readers asking the same question: how do I invest in SpaceX? Here's how I'm thinking about the 3 options.
Option 1: Buy SPCX after it trades on Nasdaq.
This is the route most people will take. And in my view, it's the worst one.
Once shares open for public trading, you're buying alongside everyone else. With a limited float and Nasdaq's expected forced buying from index funds, the open could be chaotic. You may end up paying well above the IPO price on day one. Easy to do, but you give up the early-investor advantage.
Option 2: Request an allocation from your broker.
This is a better option. SpaceX is reportedly reserving an unusually large slice for individual investors — possibly north of 20% of the deal. Brokers including E*Trade, Fidelity, Schwab, Robinhood, and SoFi plan to offer shares to their clients.
Here’s the catch: that pool gets split between self-directed investors and the banks' high-net-worth clients. Demand will be enormous. Getting a meaningful allocation through a standard brokerage account is far from guaranteed.
Option 3: Secure Pre-IPO shares now.
This is what I'm doing. It lets you get positioned before the stock ever trades — just 2 weeks ahead of the listing — rather than competing for scraps on IPO day.
This allows you to assure that you get exposure. Plus, you can lock-in your investment at a big discount to the expected IPO price.
Do you have any questions about the SpaceX IPO? Please reply and let me know – I’ll respond in an upcoming issue later this week.
Ian Wyatt
Editor, IPO Watch