Overview
SpaceX is reportedly exploring a dual-class equity structure as part of preparations for a planned initial public offering scheduled for later this year. Under the contemplated arrangement, the company would issue a class of shares that confer greater voting power to a subset of investors, enabling insiders such as Elon Musk to preserve control of corporate decision-making even without a majority economic stake.
Governance and board changes
Sources indicate the company is also enlarging its board of directors. The additional directors would be tasked with guiding the IPO process and helping to advance Musk's objectives for ventures beyond the firm's principal rocket and satellite operations. Discussions remain ongoing and the specifics of any governance changes have not been finalized.
Size and uses of proceeds
SpaceX is targeting a sizeable public offering later this year that could raise up to $50 billion. The company has outlined prospective uses for those proceeds tied to large-scale projects, including the development of artificial intelligence data centers in space and construction of a factory on the moon. In connection with broadening its strategic footprint, SpaceX has recently added Musk's xAI to its portfolio, signaling an expansion into artificial intelligence alongside its aerospace work.
Context on dual-class stock
Dual-class share arrangements are a familiar feature among some U.S. technology firms, with examples often cited in the sector. Proponents of such structures argue they allow founders and key executives to pursue long-term strategies without being constrained by shorter-term shareholder pressures. In SpaceX's case, a super-voting share class would be intended to shield management from activist investors seeking to force changes contrary to leadership's plans.
Prior related positions
Elon Musk has previously advocated for a similar protective share structure in other corporate settings, proposing a dual-class framework at Tesla to secure a defined level of voting control. At the time, he tied that proposed governance change to retaining influence over developments in areas such as AI and robotics.
Ongoing uncertainties
Negotiations and planning around the IPO structure and board composition are continuing, and the final contours of the offering could change as the company finalizes its approach.