SpaceX’s IPO Plans and Tesla’s Pay Package Reveal the Economics of Elon Musk’s Ventures
Tesla’s board of directors has collectively earned more than $3 billion from stock awards granted between 2018 and 2020.
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Elon Musk’s space exploration venture SpaceX has initiated a secondary share sale that values the company at roughly $800 billion, according to a letter sent to shareholders by CFO Bret Johnsen and reviewed by Reuters.
The transaction, which allows the company, along with new and existing investors, to purchase up to $2.56 billion worth of shares at $421 each, signals increasing internal preparation for a potential public offering as early as 2026.
While SpaceX has periodically conducted insider share sales, this valuation places the company among the most valuable private firms in history and reflects the commercial maturation of its satellite internet arm, Starlink.
The service has become SpaceX’s primary revenue engine, supported by rapid constellation expansion, planned direct-to-mobile connectivity, and increasing demand from governments and enterprises.
In the shareholder letter dated December 12, Johnsen emphasized that an IPO remains uncertain in timing and valuation, but framed public markets as a potential mechanism to fund capital-intensive ambitions.
Reuters has previously reported that SpaceX could seek to raise more than $25 billion in an IPO, potentially as early as June, should market conditions remain favorable.
The renewed IPO is happening while investors appear increasingly willing to back capital-intensive technology platforms with long-term horizons, particularly those controlling space infrastructure layers.
The SpaceX news coincides with a new round of inspections around governance and compensation practices across Musk’s technologically driven realm.
An analysis conducted for Reuters by Equilar found that Tesla’s board of directors has collectively earned more than $3 billion from stock awards granted between 2018 and 2020, which is way more than peer compensation at other major US technology firms. Although Tesla suspended director compensation in 2021 following a shareholder lawsuit, the appreciation of earlier awards generated substantial windfalls as Tesla’s stock price surged.
This has brought Musk’s compensation back into the conversation once again. Tesla shareholders recently approved a record-breaking pay package that could ultimately be worth close to $1 trillion, contingent on aggressive market capitalization and operational targets over a decade. While critics argue the scale is unprecedented and misaligned with governance norms, Tesla’s board has defended the package as essential to retaining Musk and sustaining the company’s long-term strategy.
