SpaceX reportedly mulls dual-class share structure for upcoming IPO

Investing.com -- SpaceX is exploring a dual-class share structure for its planned initial public offering this year, according to a Bloomberg report Friday.

The proposed structure would give select shareholders stock with enhanced voting power, allowing insiders like Elon Musk to maintain control of the company even with a minority ownership stake. This approach mirrors a strategy Musk previously suggested for Tesla Inc.

The rocket and satellite maker is also reportedly adding members to its board of directors to help guide the IPO process and advance Musk's space ambitions beyond the company's core businesses.

The deliberations are ongoing, and IPO details could still change.

SpaceX aims to hold its blockbuster IPO later this year in a deal that could raise up to $50 billion. The funds would support ambitious projects including AI data centers in space and a factory on the moon. The company recently expanded its portfolio by acquiring Musk's xAI, moving beyond rockets and satellites into artificial intelligence.

Dual-class share structures are common among U.S. technology companies, including Meta Platforms Inc. and Alphabet Inc. These arrangements are typically presented as enabling founders to focus on long-term vision without short-term shareholder pressure.

With super-voting shares, Musk would create protection against activist shareholders pushing for changes against his wishes. The billionaire has previously advocated for this approach at Tesla, where he proposed creating a dual class of shares to secure at least 25% voting control, threatening to develop his AI and robotics products elsewhere if unable to achieve that level of influence.

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