Elon Musk’s proposed pay package in SpaceX’s IPO filing introduces what the firm actually is
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Elon Musk’s new pay package at SpaceX, the largest in corporate history, comes with one little catch: He doesn’t get the money until one million people live on Mars.
Key facts
The SpaceX board granted Musk one billion restricted shares of Class B common stock on top of his existing stake of roughly 5 billion shares, worth roughly $700 billion at the expected IPO valuation
The AI segment generated $818 million in revenue but lost $2.5 billion on operations, while spending $7.7 billion on capital expenditures—mostly Nvidia GPUs, which the company leased from its own
Three months before filing, Musk merged his AI company xAI and his social media platform X into SpaceX, in a deal that valued the rocket company at $1 trillion and the AI company at $250 billion
The new shares, potentially worth an additional $600 billion or more, only vest if SpaceX hits two conditions: its top market capitalization milestone of $7.5 trillion, and the creation
Summary
The SpaceX board granted Musk one billion restricted shares of Class B common stock on top of his existing stake of roughly 5 billion shares, worth roughly $700 billion at the expected IPO valuation of $1.75 trillion. The new shares, potentially worth an additional $600 billion or more, only vest if SpaceX hits two conditions: its top market capitalization milestone of $7.5 trillion, and the creation of a permanent human colony on Mars with at least one million inhabitants. The prospectus answers a question on Wall Street’s mind: why SpaceX is going public this way at all.
SpaceX is a Mars company, and everything else is built as infrastructure for the trip.