The paperwork that SpaceX submitted to the SEC for its upcoming IPO reportedly contains the provisions for a deal that will assure Elon Musk has unchallenged control over the firm even after its mega trillion-dollar public listing.
The report by Reuters claims that the X IPO deal contains provisions that validate only Elon Musk’s vote to remove himself as chief executive and board chairman.
The disclosure comes as analysts have started to sound caution over certain particulars of the deal, and especially how it affects retail. And according to SpaceX CFO Bret Johnsen, “Retail is going to be a critical part of this — a bigger part than any IPO in history.”
Elon Musk makes himself lifelong CEO
SpaceX has officially filed paperwork for what is expected to be the largest IPO in history. The company is aiming to raise $75 billion, targeting a valuation of nearly 2 trillion.
However, the registration document, filed confidentially with the SEC on April 1 and reviewed by Reuters, shows that Musk will be given unchallenged, lifelong control of the rocket and satellite company even after it goes public.
SpaceX plans to split its stock into Class A shares for public investors and Class B super-voting shares for insiders. Each Class B share carries ten votes. Musk will hold a majority of the Class B stock, ensuring that no one can remove him from leadership without his consent.
The filing explicitly warns shareholders that the arrangement will “limit or preclude your ability to influence corporate matters.”
Cryptopolitan also recently reported that SpaceX’s board approved a compensation plan in January that could deliver Musk up to 200 million restricted Class B shares if the company reaches a $7.5 trillion valuation and establishes a permanent human settlement on Mars with at least one million residents.
In the meantime, his salary remains just $54,080.
Is the $2 trillion valuation worth it for investors?
SpaceX’s IPO is being led by big names like Morgan Stanley, Goldman Sachs, JPMorgan, Bank of America, and Citigroup. The proposed valuation of nearly $2 trillion against SpaceX’s $15.6 billion 2025 revenue means a price-to-sales ratio above 100, more expensive than any stock currently on the S&P 500.
Up to 30% of the company’s shares are earmarked for everyday investors, but financial advisors are urging investors to reconsider buying on day one.
Matthew Parenti, a partner at Chicago-based Private Vista, pointed out that unlike Apple, Amazon, or Meta, which went public when they were three to six years old, SpaceX will list at 24 after most of its valuation growth already happened in private markets. He advised investors to let go of any hope for long term returns.
The lock-up period, expected to end between mid-December and late December 2026, also raises concerns. Insiders and employees, who acquire shares at much lower prices, are typically barred from selling their shares for 180 days after the IPO.
Historically, the market is usually flooded with shares that period, crashing the price for those who bought in during the initial hype.
SpaxeX appears to be aware of the doubt creeping and has started to hold private meetings with analysts in Texas and Tennessee to show them the sites that sit at the center of its $1.75 billion public listing, as Cryptopolitan reported.
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