Brandon Fletcher
In a recent post on X, Elon Musk cautioned potential investors about the unpredictable journey ahead with SpaceX. While he noted that the financial rewards could be substantial in the long run, he emphasized that shareholders should not expect a straightforward path. Musk reiterated his commitment to his vision of making human life “multiplanetary.”
If you’re contemplating an investment in SpaceX stock, it’s wise to take Musk’s warning seriously. Following the anticipated IPO next month, how do you envision the dynamics at SpaceX? It’s unlikely that you are imagining SpaceX morphing into a mundane entity like AT&T, right?
During a talk with his employees in February, Musk vividly painted his vision for SpaceX’s future, which includes concepts like space catapults, a Dyson sphere orbiting the sun, and artificial intelligence fueled by knowledge once held by long-extinct extraterrestrials.
In essence, if you are envisioning a conventional American business model characterized by steady profits, dividends, and healthy market competition reminiscent of a 1940s propaganda film, then SpaceX is not the company for you.
Recent reports reveal that SpaceX’s corporate governance structure is designed in a way that the CEO and chairman cannot be removed. This setup includes different classes of stock, where Class A shares cater to pension funds and everyday investors—essentially the general public—while Class B shares are reserved for influential stakeholders. Notably, Class B shares offer ten times the voting power of Class A shares, and Musk will maintain control over these Class B shares.
The IPO filing, partially detailed in a Reuters article, confirms this arrangement. According to the document, Musk “can only be removed from our board or these positions by the vote of Class B holders.” If Musk “retains a significant portion of his holdings of Class B common stock for an extended period, he could continue to control the election and removal of a majority of our board.”
Essentially, Musk will remain in both roles for as long as he desires, possessing the power to veto any attempt to remove him. While common shares without voting rights are not uncommon today, a board devoid of real power is unusual. As noted by Lucian Bebchuk, a Harvard expert on corporate governance, “Typically, the decision to remove a CEO is made by the board, relying on their authority to change the board itself.”
If you invest in SpaceX, you are primarily a passenger on this journey.
Recently, Musk responded to a Financial Times article discussing SpaceX’s stringent governance model, offering some clarification:
Yes, I need to make sure SpaceX stays focused on making life multiplanetary and extending consciousness to the stars, not pandering to someone’s bullshit quarterly earnings bonus!
Obviously, IF SpaceX succeeds in this absurdly difficult goal, it will be worth many orders of…
— Elon Musk (@elonmusk) May 15, 2026
“I need to make sure SpaceX stays focused on making life multiplanetary and extending consciousness to the stars,” he stated.
This is a common refrain for him. When faced with criticism—or often when his supporters defend him—he tends to express sentiments like if people are unkind to me, humanity will never achieve a multiplanetary existence.
For example, after CleanTechnica defended him following Bernie Sanders’ comments on income inequality in 2021, he responded, “I am accumulating resources to help make life multiplanetary & extend the light of consciousness to the stars.” Later that year, when European finance ministers expressed concerns about his potential monopoly over satellite launches, he tweeted, “SpaceX is developing rockets needed to make life multiplanetary — full & rapid reusability at large scale.” In another instance in 2021, when the FAA raised concerns that SpaceX had overstepped its clearance from the federal government, he publicly criticized the FAA’s space division, asserting, “Their rules are meant for a handful of expendable launches per year from a few government facilities. Under those rules, humanity will never get to Mars.”
Some analysts predict that shortly after the IPO, SpaceX’s increased valuation could push Musk’s net worth beyond the trillion-dollar mark. This development is significant. Elon Musk positions himself as a central figure in humanity’s future, suggesting that everyone else is merely a non-player character in this narrative. Do you agree with this perspective? If so, consider investing in the stock (This is not financial advice).
Daniel Mercer
Ethan Carter
