As SpaceX and numerous banks get ready for the company’s initial public offering of stock (IPO), several tidbits about the structure of the stock and the company post-IPO have been dribbling out.
First, prior to the sale the company split its stock, converting each existing private share from one to five. It appears this action served to protect the value of that previously issued stock, much of which had either been issued to employees or purchased by major investors, including Musk. This split maintains their control over the company.
It also lowered the expected price of the stock in the IPO, ranging from present estimates of $100 to $160.
The absolute level of a stock doesn’t typically matter all that much, but a lower price might help smaller retail investors build positions. Retail shareholders are expected to be important for SpaceX. They hold a lot of Tesla shares.
Second, these preliminary stock arrangements appear designed to guarantee Elon Musk will remain in control of the company, even after it goes public. His shares, numbering 260 million (which could be more than a billion if prior to the stock split), will be given supervoting powers, ensuring his mastery of the company.
When the IPO happens remains uncertain. The Wall Street Journal says June 12, 2026, while Bloomberg says it could be as soon as May 20th.
Either way, it will be a major financial event, and should shake up the entire global launch industry in ways that cannot be predicted. It will certainly give SpaceX the funds it needs to develop Starship/Superheavy fully, making access to space cheap and affordable. It will also allow the company to pursue its goals in space, establishing data centers constellations in orbit and on the Moon (for profit) as well as colonies on Mars.
Whether the IPO will suck all the investment capital out of the rest of the industry remains uncertain, though some are claiming this. In reality, it could just as easily end up doing the opposite, as the market is never zero-sum game. Success in one place usually ends up fueling success all around.
Either way, this IPO is going to change things for sure. It will establish without question what I have been saying for more than a year, that the real American space program is being run by SpaceX, and that NASA’s Artemis program is merely a long term ineffective sideshow that is simply aiding the company achieve its goals.
