"Anthony Scaramucci has said he owns shares of SpaceX. So does 2 Chainz, the rapper; Betsy DeVos, the former education secretary; and the hosts of a podcast called “Rich Habits” and more than 150 of its followers.
Elon Musk’s rocket and satellite company is about to hold what could be the largest initial public offering ever, allowing anyone to own its stock after 24 years as a private firm. So why does it seem that so many people already do?
The answer lies in the opaque market for private company shares, driven largely by what are known as special purpose vehicles, or SPVs. These legal entities, which are designed to hold assets like equities, have become a popular way to invest in private company stock as groups of investors can pool money for a single investment. . ."
SpaceX, founded in 2002, is among the private companies that investors have formed the most SPVs for, according to a tally by The New York Times.
- More than 170 such investment vehicles with the name “SpaceX” or “Space Exploration” in them were set up mostly in the past six years, according to Securities and Exchange Commission filings.
- Not all of the entities that own SpaceX stock include the company in their names.
How Elon Musk’s SpaceX Secretly Allows Investment From China
As a U.S. military contractor, SpaceX sees allowing Chinese ownership as fraught. But it will allow the investment if it comes through secrecy hubs like the Cayman Islands, court records say. “It is certainly a policy of obfuscation,” an expert said.
Source: Reuters
SpaceX IPO filing reveals unusual control structure for Elon Musk, reported by Reuters. Only Musk can effectively remove himself as CEO or chairman through voting rights tied to super-voting Class B shares He will hold dominant voting power, allowing control over board elections and decisions, enabling tight oversight of board.
Experts say this goes beyond typical dual-class governance models used in tech IPOs.Investors warned their influence over company direction will be highly limited under proposed struc
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