SpaceX IPO opens the market, but leaves control with Musk

SpaceX carried out a record IPO, giving public investors access to one of the most valuable companies in the world—though not to equal voting rights. Elon Musk owns a little more than 40% of the shares, while controlling over 80% of the votes.

A dual class share structure is a common practice in tech IPOs, allowing founders to shield themselves from short-term market pressure. But Harvard Law School professor Lucian Bebchuk warns that SpaceX’s structure goes significantly further, creating risks related to accountability, succession, conflicts of interest, and shareholder value.

The Danish pension fund AkademikerPension has already declined to buy the shares, calling the governance system “catastrophic.” SpaceX is becoming a precedent: how ready public markets are to tolerate a concentration of control among “superstar” founders at the expense of investor protection.
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