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SpaceX IPO Filing Says Only Class B Holders Can Remove Musk

The plan leaves public shareholders with little say over corporate decisions.

Overview

  • The confidential IPO filing, reviewed by Reuters on Wednesday, says Elon Musk can be removed only by Class B shareholders he will control.
  • SpaceX plans a dual‑class setup with Class A stock for the public carrying one vote per share and Class B insider stock carrying ten votes each.
  • The filing tells prospective investors that the structure will limit or even preclude their ability to influence corporate matters or board elections.
  • Corporate governance experts call the removal clause unusual and say its real effect will depend on SpaceX’s charter and the SEC’s ongoing confidential review.
  • SpaceX is incorporated in Texas, a detail noted in coverage as part of the backdrop to its governance approach.