If You'd Invested $10,000 in the SpaceX IPO, Here's How Much You Would Have Now

Space Exploration Technologies (NASDAQ: SPCX) drew a lot of attention in the weeks leading up to its initial public offering, for many reasons -- from the sheer size of the operation, with SpaceX's goal to become a trillion-dollar company, to the focus on offering shares to retail investors. SpaceX earmarked more than 20% of shares for them, when generally in IPOs, only 5% to 10% go to non-professional investors.

Some investors were also eager to get in on SpaceX for its range of growth businesses -- and to gain exposure to a company led by the ambitious Elon Musk.

So, if you happened to be one of the investors who was able to buy shares at the IPO price of $135, and if you had invested $10,000, how much would that be worth now? Let's find out.

Image source: Getty Images.

Why SpaceX has drawn attention

First, though, let's talk quickly about SpaceX -- to fully understand why so many sets of eyes were turned toward the company on and before its June 12 market debut. As mentioned, the SpaceX operation promised to be big, pushing the company to a trillion-dollar market cap right out of the gate.

The world's other trillion-dollar companies, such as Nvidia and Amazon, for example, had to wait years and even decades to reach such a level. And by the time they did, they already were highly profitable, well-established players.

SpaceX, however, is still in earlier growth stages, developing technology and investing to reach its goals. The company's business units of space, connectivity, and artificial intelligence (AI) brought in $18 billion in revenue last year, but capital spending meant the company wasn't able to turn revenue into a profit. Instead, SpaceX reported a loss of $4.9 billion.

While SpaceX has scored accomplishments like rocket launches with reusable boosters and growth in satellite-based internet service subscriptions, the company still must invest heavily to reach its biggest goals. And this may weigh on its ability to reach profitability. It also involves risk because a technology setback could call into question a certain revenue opportunity.

Elon Musk's big dreams

Still, some investors flocked to the company for this focus on innovation, driven by chief Elon Musk, who is known for big dreams -- as head of Tesla, he's deploying robotaxis, and at SpaceX, his most significant goal may be to colonize Mars.

This combination of elements put the spotlight on SpaceX when it announced its IPO. And the operation went on to raise $75 billion for the biggest market launch on record -- the company raised a total of more than $85 billion after the exercise of an overallotment option a few days later.

Now, let's consider how much you would have today, about three weeks after this massive operation, if you had gotten in on SpaceX for the $135 offer price. The stock has advanced about 18% from that level to early trading at about $160 on July 2. This means your investment would be worth $11,800. You would have gained, but this isn't an enormous increase, particularly considering all of the excitement surrounding the IPO.

Look for long-term performance

So, if you are in this situation, what should you do next? The way to benefit most from investing isn't to hope for a quick overnight win but instead for gains over a period of years. If you invested in SpaceX during the IPO, you likely believe in the company's growth story -- this means you should give the tech and industrial giant the chance to deliver. It's important to closely follow the upcoming earnings reports to monitor capital spending levels as well as revenue growth and any progress toward goals.

But if you haven't yet invested in SpaceX, I wouldn't rush to do so. The company, as mentioned above, comes with considerable risk -- and in this case, it's a good idea to consider a few quarters of financial information to see how the situation evolves. So, even though SpaceX has delivered a moderate win so far, for most investors, it still may be too early to jump in.

Adria Cimino has positions in Amazon and Tesla. The Motley Fool has positions in and recommends Amazon, Nvidia, and Tesla. The Motley Fool has a disclosure policy.