SpaceX Share Structure Designed to Keep Musk in Charge

SpaceX plans to introduce a share structure upon its stock market listing that will significantly strengthen Elon Musk's control over the company. According to the initial public offering (IPO) document, Musk can only be removed as chief executive and chairman by a vote of Class B shareholders. These shares carry greater voting power and will be held predominantly by Musk himself following the IPO, meaning he would effectively retain control over both decision-making and the composition of the board of directors.

The model is based on the dual-class share system common in founder-led technology companies. In SpaceX's case, experts say the model goes further than most, since Musk could only be removed by a vote he himself would largely control.

Experts note that the final outcome depends on the details of the legal documents, but the structure is already seen as one that may limit the influence of other investors. The company has flagged this in its investor materials.

SpaceX plans to split its shares into Class A for public investors and Class B for insiders, with Musk retaining the majority of voting rights.

(reuters, max)