SpaceX Plans to Adopt Dual-Class Share Structure in IPO to Strengthen Musk's Control

Odaily News According to informed sources, SpaceX is considering adopting a dual-class share structure in its planned initial public offering this year. This structure would grant specific shareholders shares with higher voting rights, giving them a dominant position in decision-making. This move would allow insiders, including Musk, to maintain control over the company even with a relatively low ownership stake. The sources mentioned that SpaceX is also adding new board members to assist in advancing the IPO and to expand Musk's space ambitions beyond its core rocket and satellite businesses. Dual-class share structures are relatively common among U.S. technology companies, typically granting founders and insiders 10 or even 20 votes per share, while common shares usually have only one vote. Critics argue that this weakens accountability. Musk has praised this structure and has proposed establishing a dual-class share category for Tesla to ensure he maintains at least 25% voting control in the company. (Jin10)