Boxabl is one of the largest and most popular companies in the equity crowdfunding world. As such, tens of thousands of investors invested varying amounts in the company but might not be able to get a straight answer to their questions. This guide has been prepared to answer many of the questions new investors might have about their Boxabl investments. If there's a question not answered during this guide, please comment below the article and I will edit the article with the answer. I do not speak on behalf of Boxabl, although I do hold shares in the company and keep up with current events of the company.
Who Can Invest in Boxabl?
Anyone can invest in Boxabl. Equity crowdfunding raises have certain investor limitations, but when these raises are live, anyone can invest in them, including retail investors. There are no restrictions on who can invest in Boxabl when their equity crowdfunding round is live.
Is Boxabl a Good Investment?
Investors should consider their own investment goals when deciding to invest in Boxabl or other startups. Boxabl currently ranks on in the top 10% of all companies on Hubtas. Hubtas is the most powerful equity crowdfunding data and analytics platform, ranking every equity raise in equity crowdfunding on over 100 data points. Using Boxabl's venture algorithm, Boxabl ranks #3 overall on Hubtas.
Startup investing is risky, typically with large upside. What is a good investment to one might not be to another. There are valid criticisms around the company, such as executive compensation, previous issues with employees, a high valuation, and sales by selling stockholders. However, the company has also received investments from D.R. Horton, generated tens of millions in revenue, has a vast patent portfolio, a large waitlist of potential buyers, and more.
All of these factors should be considered when considering any investment, including Boxabl. However, tens of thousands of investors have looked over the pros and cons of the company and decided to invest. Similarly, it's likely several thousand also passed on the investment. Meaning both conclusions are fair.
Can I sell my Boxabl Shares?
Likely not at this time. If you invested in their large Regulation A (Reg A) campaign, you can sell your stock immediately, but you would need to find a private buyer, then contact Boxabl's transfer agent to facilitate the stock transfer. If you invested in their Regulation Crowdfunding (Reg CF) campaign, then you are required by law to hold for at least one year before transferring your stock. At this time, you may sell your shares using the method described above.
This is not exclusive to Boxabl. Startup investing is long-term investing and investors should expect to hold their shares for several years at a minimum. If or when Boxabl conducts an initial public offering, investors may sell their shares on the open market, but the regulations above still apply.
Does Elon Musk Own a Boxabl?
Yes, Elon Musk owns a Boxabl Casita. It is not his primary residence, rather the billionaire uses it as a guest house. The house sits next to his primary residence in Boca Chica, Texas.
How Can I Support Boxabl?
Boxabl recently launched an affiliate program allowing investors to get paid in cash or stock for referring purchasers of Casitas. Referring potential casita buyers can result in tens of thousands of revenue and profit to the company. For those interested in signing up, you can sign up here:
For those interested in purchasing a Boxabl Casita, you can get $100 off using this link and clicking here.
How Much Money Has Boxabl Raised?
Boxabl has raised over $168 million, including over $100 million through equity crowdfunding. This is broken down as follows:
Boxabl first raised $3,225,149 through Wefunder in 2021.
Boxabl raised $5 million on StartEngine through a Regulation CF raise which concluded in November of 2021.
Boxabl launched a Regulation A raise simultaneously on Republic and StartEngine which concluded in August of 2022. Through this, Boxabl raised $1,167,623 through Republic and $24,985,421 through StartEngine. The company raised the remaining funds through a private white-label service, Dalmore Group, for a total of $75 million in through this Regulation A.
There was a simultaneous Regulation D raise being conducted by Boxabl through Dalmore Group during the Regulation A raise. Through this, the company raised $14,776,138.
Boxabl launched another Regulation CF following the conclusion of the Regulation A. They launched this Reg CF raise in August of 2022 and raised $5 million.
Boxabl recently opened a Test-the-waters campaign currently live on StartEngine which has raised over $3 million.
In total, that puts these raises at over $101 million raised through equity crowdfunding. The company has already conducted a number of undisclosed private raises and direct investments totaling $168 million in total investments.
How Do I Invest In Boxabl?
The best way to see if you can invest in Boxabl is to check their site at invest.boxabl.com and check their latest offerings. The offering is periodically live on StartEngine and other sites, but the main site will typically alert you of live offerings.
When Will Boxabl Conduct an Initial Public Offering?
Boxabl currently has no set plans to conduct an initial public offering at this time, although that is the ultimate goal. Companies often take as much as ten years or more from founding to scale to the size of an IPO. Most venture capital firms aim for five years from their Series A raise to IPO. Boxabl conducted its Series A in the 2022 timeframe.
Boxabl was founded in 2017, meaning the company is relatively young. They have only begun producing houses as of 2021 and continue to ramp up. If companies conduct an IPO too early, it can cause the stock to suffer severely on their first days of trading, ultimately hurting the company long term. Conversely, if a stock IPOs when they are ready, it can cause a higher initial price on the IPO day and weeks of continued growth and success due to pent-up and institutional demand for the stock. In short, it's the difference between their thousands of investors losing money on the deal and a lackluster IPO or substantial gains for everyone.
Fortunately, the founding team has provided some guidance as to when they plan to IPO. The founders note they think the company would be ready to IPO when they have completed their Boxzilla factory and hitting roughly $1 billion in yearly revenue. That implies roughly 15-20,000 houses built per year. They are currently averaging 1000-2000 per year based on current estimates.
Is Boxabl a Scam?
No, there is no proof or facts to support the fact that Boxabl is a scam. There a number of bad actors openly spreading misinformation, many of which are prior felons, have a history of being paid to spread misinformation about companies, and more.
While there are some valid complaints regarding the company, there is no proof of fraudulent practices within the company. It's important to note that Boxabl is a startup and early-stage company. This means they, like all startups, are working with limited resources and the expectation is largely different than that of investing in a public company.
Boxabl has struggled to receive regulatory approval and been the subject of a number of other controversies over the years. This is completely common for all businesses. If running a startup was easy, everyone would do it.
Will I Ever See a Return on My Boxabl Investment?
The two main ways that investors see a return on startup investments are through an IPO or an acquisition. While an acquisition is possible, an IPO is the more likely avenue of seeing a return. It is likely this avenue is several years out, but Boxabl has a substantial amount of cash on hand and has not struggled to raise money up to this point. This means if the company can scale to a point where they can conduct an IPO, investors will see a return. At the current time, the company is not in jeopardy of going out of business, so investors' investments are safe. It's important never to invest more than you can afford to lose.
Why are houses taking so long to deliver?
Boxabl first began producing houses in 2021. At the time, the company had over $1 billion in reservations before ever producing a house. It takes time for a startup to ramp up and scale production. As the waitlist continues to grow, it will only take longer to fulfill. While the company is consistently working to fulfill orders, it's difficult for any company, more or less a startup to fulfill $1 billion in orders.
As an example, let's say you are a construction worker and you build your first house. It takes about a year. You get some indications of interest to build houses for other people, and suddenly you get $1 billion in reservations for 20,000 houses. It took you 1 year to build 1 house. At that, you won't ever fulfill the demand. If this was cars, at least there's already equipment and defined processes in place to scale cars. Boxabl does not have that framework and they are building houses.
Fulfilling $1 billion of anything would be difficult to fulfill. If you had to fulfill an order for $1 billion in shirts even, that would be difficult. Even at $100 a piece, you'd need to figure out production, shipping, and sourcing for 10,000,000 shirts. Now imagine trying to fulfill 20,000 houses.
Should I be worried about the long wait times?
Long wait times are normal for products with high demand. Tesla revealed the Cyber truck in 2019, and quickly racked up a waitlist in the several millions. After numerous delays in delivery, no trucks have been delivered yet and the unlikely release is set for Q4 of 2023. Regardless, there are still thousands of reservations being added every week, and the waitlist will likely not be fully fulfilled for several more years. Tesla has been operating off of fulfilling waitlists for much of its career, including never having to advertise its products. While it might result in some reservations dropping off the waitlist, it's better to have too much demand than too little.
When Will My Boxabl be Available?
According to Boxabl, new customers will likely have to wait at least a year from May of 2023 before receiving their Casita. This could vary drastically by a number of factors, including receiving financing for their new factory, availability of financing, and more.
Does Boxabl Have Regulatory Approval?
The Casita product is certified as a “park model RV” in accordance with ANSI 119.5 in all 50 states. Boxabl plans to receive state modular approval for its modular units.
How Much Do Boxabl's Currently Cost?
Most recent Boxabl models are selling for $60,000 per casita. This includes being fully insulated and furnished with a kitchen, bathroom, bedroom, and couch. Boxabls have hookups on the outside for water and electrical.
Are Boxabl's Becoming Too Expensive?
No, Boxabl has a massive waitlist in the billions as previously noted. It is incredibly unlikely that Boxabl has so much demand that they will be unable to fulfill it for several years and that Boxabl's are becoming overpriced. The law of supply and demand states that if you have too much demand, prices are actually too low.
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