SpaceX Targets $1.75 Trillion IPO with Ten‑Vote Shares Locking Musk in Control

TL;DR: SpaceX aims for a $1.75 trillion IPO valuation, granting Elon Musk ten‑vote Class B shares and a contractual provision that prevents his removal as CEO or chairman without his consent.

Context: SpaceX filed its S‑1 with the SEC, disclosing a dual‑class stock system where Class B shares carry ten votes each. Musk will hold the vast majority of these shares, giving him effective veto power over board elections and leadership changes. The company is incorporated in Texas, a state whose laws provide stronger defenses against activist investor suits compared to Delaware. Environmental groups in South Texas have urged institutional investors to boycott the offering, citing Starship launch impacts and governance concerns.

Key Facts: The IPO values SpaceX at $1.75 trillion, which would represent about 62 % of Apple’s (AAPL) current market cap of roughly $2.8 trillion and 70 % of Microsoft’s (MSFT) market cap near $2.5 trillion. Each Class B share held by Musk carries ten votes, while public Class A shares hold one vote each. The filing states that Musk cannot be removed as CEO or chairman without his own consent, a provision designed to lock in his control indefinitely.

What It Means: Investors buying Class A shares will receive limited voting influence, effectively accepting a “benevolent dictatorship” in exchange for exposure to SpaceX’s growth across launch services, Starlink broadband, and AI initiatives. The Texas incorporation may deter shareholder lawsuits and limit the ability to submit proposals, potentially reducing typical checks on management. Market watchers should note the possible elimination of the standard 180‑day lock‑up period for insiders, which could increase early‑day volatility if large amounts of stock hit the market soon after debut.

What to watch next: The SEC’s review timeline, the final pricing range, the first day of trading, and any shareholder proposals that emerge despite the Texas‑based defenses.