SpaceX reportedly plans to use a dual-class share structure for its IPO, with Musk potentially holding "super voting rights"

According to media reports citing sources, SpaceX, the space exploration company founded by the world’s richest person Elon Musk, is considering adopting a dual-class share structure in its initial public offering (IPO).

The dual-class share structure would give certain shareholders additional voting rights, allowing them to influence company decisions. This move would enable insiders, including Musk, to maintain control of the company despite holding a relatively small stake.

SpaceX is also adding new members to its board of directors. Sources say this is intended to guide the IPO process and to advance Musk’s space ambitions beyond core rocket and satellite businesses.

Musk previously proposed building data centers in space to provide complex computing power for artificial intelligence (AI).

This month, SpaceX acquired Musk’s AI company xAI and plans to go public later this year, potentially raising up to $50 billion.

Sources indicate that discussions are still ongoing, and specific details of the IPO may change.

The dual-class share structure is quite common among American tech companies, such as Meta and Alphabet, the parent company of Google.

This structure is often seen as a way for founders to focus on long-term vision. Under this setup, founders and insiders typically hold 10 or even 20 votes per share, while common shares usually have only one vote.

However, critics argue that this structure can weaken management accountability.

If SpaceX adopts a dual-class share structure, Musk would be granted “super voting rights,” allowing the billionaire to effectively resist activist investors seeking to push changes against his wishes.

In fact, Musk has long favored this layered equity structure. He previously proposed establishing a dual-class structure at Tesla to ensure he holds at least 25% of the voting power, and stated that if he couldn’t achieve this influence, he might transfer AI and robotics businesses to other companies.

Musk currently owns about 11% of Tesla shares, but last year, Tesla granted him a compensation package valued at up to $1 trillion, which could increase his stake to over 25% in the next decade.

(Source: Cailian Press)