Comment by tristanj
1 hour ago
Elon Musk owns 12.3% of Class A shares and 93.6% of Class B shares. Class B shares have 10x the voting power of class A shares. Overall Elon controls 85.1% of the voting power in the company. If Elon sells any of his Class B shares, they automatically convert into Class A shares.
Retail and institutional investors will have practically no say in the direction of the SpaceX.
> Each share of Class A common stock will entitle its holder to one vote per share. Each share of Class B common stock will entitle its holder to 10 votes per share. Each share of Class B common stock will convert automatically into one share of Class A common stock upon a Transfer.
The S&P 500 index criteria didn’t allow this sort of nonsense starting in 2017, but they relaxed the rule again to allow dual class listings to be included in the index in 2023.
Not looking forward to SpaceX.AI.Twitter’s eventual inclusion, I do not like founder controlled publicly traded companies.