What is SpaceX?
SpaceX is a private aerospace manufacturer and space transportation company focused on developing technologies to reduce the cost of space exploration and enable broader access to space. The company designs and launches rockets, deploys satellites, and supports missions for both commercial customers and government agencies, including NASA.
Since its founding in 2002, SpaceX has achieved several notable milestones, such as becoming the first private company to send a spacecraft to the International Space Station, developing reusable rocket technology, and launching the Starlink satellite network to provide global broadband internet coverage.
How to participate in the SpaceX IPO
You can participate in an IPO on Fidelity.com from the Initial Public Offerings (IPOs) Calendar. Follow our step-by-step guide to learn how to get involved.
Check out our IPO calendar
View initial public offerings (IPOs), download a prospectus, or participate.
1. Sign up for IPO Alerts to be notified by email or Fidelity Trader+TM Desktop.
This will automatically prompt you to log in to your Fidelity account if you’re not already logged in.
2. Select Participate for the offering you'd like to participate in.
3. Select the account, and then Next Step.
4. Download and review the prospectus, then Next Step.
You must open the prospectus as part of the participation flow, even if you had previously opened from the calendar page.
5. Answer the FINRA Rule 5130 / 5131 qualification questions by choosing Yes or No.
6. Enter your indication of interest (IOI), which lets Fidelity know the maximum share quantity you're interested in buying.
IPO indications of interest must follow parameters, which may vary by offering. For the SpaceX offering, those parameters would include:
- Minimum request: 1 share
- Increment: 1 share
- Maximum request: 1,000,000 shares
Investors can request any number of shares within that range, as long as the total follows the increment rules. Indications that do not meet these requirements would not be accepted. Keep in mind that requesting shares does not guarantee an allocation of shares. You may receive some, none, or all of the shares requested. Final allocations depend on supply and demand, which are ultimately determined by the number of shares Fidelity receives vs. the number of shares requested by clients.
7. Review your indication of interest from the Indications of interest tab of the IPO Calendar page: Fidelity.com/IPO.
- You can easily review and then modify your indication of interest by clicking the edit button. You may increase or decrease the number of shares in your indication of interest (IOI) up until the offering period closes. After the offering period closes, you may only reduce your IOI quantity.
- You may delete your indication of interest by clicking the delete icon. Please note: If you delete your indication after the offering period has closed, you will not be able to reenter it.
8. Confirm your indication of interest on the night of pricing.
You must confirm your indication of interest after the registration statement has been declared effective and the offering has been priced (usually after 7:00 p.m. ET on the night of pricing). Confirming an indication changes your indication to an order to buy shares at the offer price.
- You can confirm or reduce your existing quantity, but you can't increase shares during confirmation.
- You must confirm your interest to remain eligible for an allocation of shares. This doesn't guarantee you will be allocated shares.
9. You will receive an alert once allocation has occurred. To check if you were allocated shares, go to Activity & OrdersLog In Required (login required).
Allocation will occur on the morning following pricing and is usually complete before 9:30 a.m. ET. An alert will be sent once allocations are complete, and you can check the Activity & Orders tab of your account to determine if you were allocated any shares. Your account will be debited for the purchase if you receive an allocation. IPO allocations are determined shortly after the confirmation period ends and are designed to distribute shares as fairly as possible among investors.
How does Fidelity intend to allocate shares of the SpaceX IPO?
Fidelity's approach to the SpaceX IPO share allocation
Fidelity’s goal is to attempt to allocate some shares of the IPO to all customers who confirm their indication of interest. That said, we anticipate demand on the offering may be significant and could be greater than the supply of shares Fidelity receives from the Issuer, which may prevent us from accomplishing our goal.
If Fidelity is unable to allocate shares to all customers interested in participating, we will use a “lottery” to allocate shares as fairly and equitably as possible across all interested clients. Please note that due to the limited amount of shares available on any IPO, clients may receive fewer shares than they requested or in some cases none at all.1
Paying for shares allocated
Any shares acquired as part of the IPO must be paid for in full no later than one business day after the stock trades in the secondary market. If you have cash in your account equivalent to the purchase, it will automatically be debited from your account on settlement. If you need to add funds to pay for the shares, payment can be made by check or wire.
You cannot pay for your allocated shares with physical cash, credit card, or the proceeds from the sale of those shares. Failure to pay for shares by settlement may result in the loss of any shares allocated to you. You will also lose any potential gains and be responsible for any losses attributable to the sale of the allocated shares.
Trading after allocation
After an IPO begins trading in the secondary market, investors are free to sell their shares at any time. However, selling too quickly, often referred to as “flipping,” can carry consequences.
For the SpaceX IPO, a 15-calendar-day tracking period would apply:
- Selling shares within the first 15 days is considered flipping.
- Investors can sell without penalty starting on day 16.
What happens if you flip shares?
Flipping shares allocated to you as part of the SpaceX IPO will restrict your ability to participate in future IPOs through Fidelity:
- First occurrence: Restricted for 6 months
- Second occurrence: Restricted for 1 year
- Third occurrence: Permanently restricted (tracked by Social Security number)
Flipping policies are designed to encourage long-term investing and reduce volatility of shares allocated in an IPO.
How to buy SpaceX stock after the IPO
If you’re unable to participate in the IPO, or choose not to, there may still be opportunities to invest in SpaceX once the stock begins trading on a public exchange. After the IPO, shares typically start trading in the secondary market, where investors can buy and sell stock through a brokerage account just like any other publicly traded company. Follow these step-by-step instructions to place a trade in your Fidelity account:
- Start by logging in to your Fidelity account. Select the Trade button from the top navigation.
- Select the account you want to trade in.
- Type in the symbol of the company.
- Select the Action (Buy or Sell).
- Choose the Quantity of shares to trade.
- Choose an Order type (Market or limit orders are the most common).
Note: Only limit orders can be used for buy orders before the stock begins trading; once the stock starts trading in the secondary market, both limit and market orders are permitted.
- Choose the Time in force (Day and Good 'Til Cancelled are the most common).
- Select Preview order, and if all looks good, select Place order.
It’s important to keep in mind that once trading begins, the stock price will be determined by market demand and may differ significantly from the IPO offering price. Newly public stocks can experience heightened volatility, particularly in the first few days of trading. Investors should use caution when placing market orders during this period, as rapid price changes may result in executions at prices that differ from expectations. Waiting until after the IPO can provide more visibility into how the market values the company, but it also means you may miss the initial offering price.
And remember, managing your investment risks should always be part of your plan. If you’re looking for more ideas, check out our 5-step trading guide. If you prefer to watch how to place a trade, here’s a quick video that provides step-by-step instructions to place a trade in your Fidelity account.