Elon Musk Acquires $1.4 Billion in SpaceX Shares, According to Recent Report

Elon Musk Increases Stake in SpaceX

Elon Musk, the billionaire CEO of SpaceX, increased his stake in the company last year by purchasing $1.4 billion worth of stock from current and former employees, according to a report by The Information on Tuesday.

The secondary stock purchase was made through Musk's trust and was disclosed in a draft of SpaceX's confidential IPO prospectus, The Information reported. This move marks a significant increase in Musk's control over the company, which has been expanding its operations in various areas, including space exploration and data center development.

SpaceX has also approved a plan that would award Musk 60 million additional shares if the company's market capitalization climbs from $1.1 trillion to as high as $6.6 trillion and the firm completes its ambitious plan of building data centers in space to supply compute for AI developers, The Information said. The stock would vest as SpaceX increases its market cap in $500 billion increments.

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The company's financial performance has been impressive, with SpaceX generating about $8 billion in profit last year on revenue of $15 billion to $16 billion, Reuters reported in January. This growth has paved the way for SpaceX to confidentially file for a U.S. listing in March.

However, the company plans to use a dual-class equity structure that gives Class B shareholders 10 votes each, concentrating power with Musk and a handful of other insiders, while Class A shares sold to public investors will carry one vote each, Reuters reported on Tuesday.