SpaceX plans to go public in what could become the largest IPO in history. The move will give Elon Musk virtually unchecked authority while limiting shareholder rights to sue or challenge management. The company is incorporating in Texas to take advantage of new governance laws.
SpaceX’s upcoming IPO will reportedly combine supervoting shares, mandatory arbitration and stricter rules on shareholder proposals under Texas corporate law. This structure aims to give Musk and other insiders broad control over the company. Reuters reported that the only person who can fire Musk is Musk himself, who will retain majority control through supervoting shares after the offering.