SpaceX is preparing for an initial public offering that will grant founder Elon Musk unchecked executive authority by combining supervoting shares, restrictive governance rules, and Texas corporate law, according to its IPO registration statement reviewed by Reuters. The structure gives Musk 83.8% of voting power despite holding 42.5% of equity, effectively preventing shareholders from challenging management decisions, filing class-action lawsuits, or forcing governance votes.

The company will implement a dual-class share system, where Class B shares—held by Musk and select insiders—carry 10 votes each, while public Class A shares have one vote. Musk's shares cannot be sold to the public and will convert automatically upon sale, ensuring control remains concentrated. Only Musk, his family, and designated entities can receive new Class B shares, and he alone has the authority to appoint or remove board members and approve major corporate actions, including mergers.

Despite weakened investor protections, demand for the IPO is expected to be high, with SpaceX projecting up to $75 billion in proceeds and a $1.75 trillion valuation. Analysts say many investors are willing to accept limited rights due to Musk's track record at Tesla and the anticipated market dominance of SpaceX. Legal experts warn the structure could set a precedent for other founder-led tech firms like OpenAI and Anthropic.

Regulators have not challenged the governance model, and SpaceX has not commented on the filing. The IPO is expected to launch later this year, with trading to begin shortly thereafter.