Physical Address
304 North Cardinal St.
Dorchester Center, MA 02124
SpaceX’s plan to go public is supposed to give CEO Elon Musk “unsupervised control” and limit the rights of shareholders to sue the company. plan, was reported by Reuters today, it can prevent shareholder lawsuits like the one that established a Musk’s pay package at Tesla.
“SpaceX’s IPO registration documents reviewed by Reuters show that the company is combining winning shares, legal disputes, stricter rules on shareholder statements and Texas corporate laws to give Musk and other insiders more power,” Reuters wrote. “At the same time, it greatly reduces investors’ ability to challenge regulators, challenge them in court and force votes on governance issues.”
Reuters said the policy would “undermine shareholder protection in unprecedented ways,” and ” the only person who can burn Musk is Musk, who will retain most of his control through major shares. “
SpaceX is said to be planning to implement a legal solution, taking advantage of a September 2025 policy statement issued by the Securities and Exchange Commission. The The SEC’s new position and that conflicting claims are those that do not comply with federal securities laws.
The SpaceX IPO will prevent shareholder lawsuits by “ensuring that anyone who owns shares ‘irrevocably and without limitation’ waives all rights to a lawsuit,” wrote Reuters. “Shareholders will also be prohibited from bringing actions against the company, its directors, officers, controlling shareholders or banks involved in the IPO, according to the filing.”
Musk says he will have the power to “select, remove or fill any position” on the board of directors, as well as “the power to control other matters that require the approval of shareholders, including M&A transactions, which will make it easier to merge with Tesla later if desired,” Reuters wrote. He currently owns 42.5 percent of SpaceX, has 83.8 percent of the voting power, and will retain 50 percent of the voting power after the announcement, the news release said.
