Is SpaceX the Once‑in‑a‑Generation Investment Everyone Will Wish They Bought?

Space: the final frontier.

That opening line from Star Trek still packs a punch. It’s arguably more relevant now than ever before, thanks to two developments. One is NASA’s Artemis II launch, the first human moon mission in more than 50 years. The other is SpaceX’s impending initial public offering (IPO).

Tesla (TSLA 5.42%) CEO Elon Musk founded SpaceX in 2002 with a vision of one day colonizing Mars. SpaceX is now moving forward with an IPO that could value the company as much as $1.5 trillion. Is SpaceX the once-in-a-generation opportunity everyone will wish they bought?

Image source: Getty Images.

Going boldly

Whether or not SpaceX’s valuation actually hits $1.5 trillion in the upcoming IPO, the company currently ranks as the world’s most valuable private company. How did it achieve this lofty status? To paraphrase the Star Trek opening, by going boldly where no company has gone before.

SpaceX dominates the global market for launching satellites (and anything else) into space. Its Falcon 9 is the world’s most cost-efficient rocket. It’s also the most reliable, with 633 launches and counting.

The company’s Starship is the first fully reusable spacecraft designed to carry humans not only into orbit around the Earth but also to the moon, Mars, and even beyond. It can transport up to 150 metric tonnes of fully reusable material. SpaceX hopes to eventually have a fleet of thousands of Starships that will transport crew and equipment to establish a self-sufficient city on Mars.

Starlink is SpaceX’s satellite internet service. It has become a cash cow for the company, with 2025 revenue estimated at roughly $11.8 billion. That figure could be just the tip of the iceberg for Starlink’s potential, though.

Earlier this year, SpaceX acquired Musk’s artificial intelligence (AI) start-up, xAI. The combination of these two companies might seem to be an odd pairing. However, AI data centers require massive amounts of electricity. Musk believes that harnessing solar energy in space is the best way to scale, which could make xAI a better fit for SpaceX than it appears at first glance.

Alternatives to SpaceX

Can retail investors buy shares of SpaceX today? Not yet. The only way to invest in SpaceX is indirectly through funds that own small stakes in the space technology company, such as the ARK Venture Fund (NASDAQ: ARKVX) and XOVR ETF (XOVR +0.29%). However, several other space stocks currently trade on U.S. stock exchanges.

Rocket Lab (RKLB +3.27%) is probably the most similar to SpaceX. The company’s Electron rocket has launched 252 satellites into space. Rocket Lab is developing a next-generation rocket, Neuron, that will carry heavier payloads. It also develops other space technology, including spacecraft and components.

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NASDAQ: RKLB

Rocket Lab

Today’s Change

(3.27%) $2.14

Current Price

$67.66

Key Data Points

Market Cap

$39B

Day’s Range

$61.91 - $69.39

52wk Range

$14.71 - $99.58

Volume

1.1M

Avg Vol

22M

Gross Margin

31.66%

Intuitive Machines (LUNR +18.53%) is a key partner to NASA. The company’s Space Data Network and ground station infrastructure were used for the recent Artemis 2 launch. Intuitive Machines has built over 300 spacecraft and has delivered over 260 kilograms of payload to the moon’s surface.

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NASDAQ: LUNR

Intuitive Machines

Today’s Change

(18.53%) $3.75

Current Price

$23.99

Key Data Points

Market Cap

$3.8B

Day’s Range

$19.21 - $24.30

52wk Range

$6.13 - $24.30

Volume

41M

Avg Vol

12M

Gross Margin

2.57%

AST SpaceMobile (ASTS +10.28%) competes with SpaceX’s Starlink in the satellite internet services market. Many of the largest communications services companies use AST’s technology, including AT&T (T +0.07%), Telefonica (OTC: TELF.Y), and Verizon (VZ +0.02%).

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NASDAQ: ASTS

AST SpaceMobile

Today’s Change

(10.28%) $8.63

Current Price

$92.62

Key Data Points

Market Cap

$27B

Day’s Range

$78.91 - $92.94

52wk Range

$18.22 - $129.89

Volume

17M

Avg Vol

15M

Gross Margin

-14399.31%

A once-in-a-generation opportunity?

Admittedly, none of those stocks enjoys the level of buzz that SpaceX has. I think that SpaceX will be the most exciting IPO stock in years (and perhaps ever). It could even be a once-in-a-generation opportunity for investors. However, I also view the entire nascent space technology industry as a once-in-a-generation investing opportunity.

Risks abound, though. There’s no guarantee that SpaceX or any of the smaller companies competing with it will be huge winners over the long run.

Still, I suspect Star Trek had it right that space is the final frontier. It will probably be a massively profitable frontier – eventually. Many investors could one day look back and regret not jumping aboard early.