Could $10,000 invested in SpaceX make you a millionaire?

Space Exploration Technologies (NASDAQ: SPCX) has many investors dreaming of fantastic gains -- with their investments even potentially turning them into millionaires. Why such excitement? SpaceX has set out game-changing goals such as developing data centers in orbit and colonizing Mars, and if the company achieves them, the awards could be significant. And at the driver's seat sits founder Elon Musk, known for his ambitious nature and focus on innovation.

This package has stirred up excitement in the investment community and led to retail and professional investors rushing to get in on the stock. The IPO, the world's biggest as it raised more than $85 billion, was oversubscribed, and investors didn't hesitate to hit the buy button in the first few days of trading, too. SpaceX stock soared 67% from its IPO price to a peak of $225 on June 16.

In recent days, though, investors have grown more hesitant, and the stock has fallen below its IPO price. Could $10,000 invested in SpaceX, now trading at a low, make you a millionaire? Let's find out.

SpaceX's accomplishments so far

First, let's talk about the SpaceX business. The company operates three units: space, connectivity, and artificial intelligence (AI). The space business aims to reduce the cost of rocket launches through the use of reusable technology, and it has made significant progress in this area. For example, in 2010, it had already lowered the costs of launches by 85%, according to NASA. SpaceX's next step in reaching its space goals is to launch its fully reusable rocket, Starship, with payloads this year.

In connectivity, SpaceX runs Starlink, a satellite-based internet service. Here, it's grown users from 2.3 million three years ago to 10 million today. As for AI, SpaceX has recently signed a deal to provide compute to Anthropic -- this will result in monthly payments of $1.25 billion to SpaceX through May 2029.

All of this is very positive, but it's important to note that SpaceX must continue to invest enormous amounts of cash to potentially reach its goals. For example, last year the company's capital spending totaled $20 billion, surpassing its revenue of $18 billion and driving it to a $4.9 billion loss. Investors may have focused on the company's big goals prior to the IPO and during the early days of trading, but now and as SpaceX reports earnings in the coming quarters, they may consider these numbers more closely. And if they do, this could continue to weigh on stock performance.

A trillion-dollar company

Now, let's consider our question: Could $10,000 invested in SpaceX today make you a millionaire? This would be very unlikely as the stock would have to advance 10,000%, bringing it to more than $12,000 per share. And considering SpaceX already is a trillion-dollar company, such gains would bring it to nearly impossible levels.

By comparison, stocks that have made enormous gains started at much lower prices and market value levels. An example is Nvidia.

SpaceX, however, right out of the gate, was already a trillion-dollar company, making it more difficult to imagine the stock propelling an investor to the millionaire mark.

All of this means it's unlikely that SpaceX, alone, will make you a millionaire, unless you invest an enormous amount in the stock -- a move that would be highly risky. But could SpaceX still boost your portfolio? It's possible, but it's important to remember that the stock comes with a fair share of risk right now -- the company is involved in a heavy phase of spending, and its successes depend on the advancement of certain technologies. If you're OK with that, you might consider buying a few shares of SpaceX on the dip, and potentially adding to the position if the company's earnings and general updates are positive.

But for most investors, it's a better idea to keep SpaceX on your watch list for now -- and to potentially create a million-dollar portfolio, focus on diversifying across a number of quality stocks.

Adria Cimino has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nvidia. The Motley Fool has a disclosure policy.