According to recent reports, SpaceX is planning to introduce a dual-class share structure as part of its upcoming initial public offering (IPO). This move aims to reinforce founder Elon Musk’s control, ensuring he remains the key decision-maker even with a relatively small equity stake.
How the Dual-Class Structure Works
The dual-class model typically grants certain shareholders multiple votes per share, while common shares carry only one vote. This structure is common among U.S. tech firms and is often used to protect founders from short-term investor pressures.
Board Expansion to Support IPO Readiness
In parallel, SpaceX is expanding its board of directors to prepare for the IPO. The new additions will help strengthen corporate governance and support Musk’s broader vision for the company’s future beyond rockets and satellites.
Criticisms and Concerns
While such structures can preserve long-term strategic goals, critics argue they may reduce transparency and weaken shareholder accountability. Musk has previously voiced support for dual-class setups, including a similar proposal for Tesla.