SpaceX Accelerates Vesting Schedule for Employee Stock Options Ahead of Planned Listing

SpaceX Accelerates Vesting Date for Employee Shares Ahead of Record-Breaking IPO

SpaceX, the rocket, satellite, and artificial intelligence company founded by billionaire Elon Musk, is accelerating the vesting date for shares awarded to employees to as soon as next week, according to people familiar with the matter. This move is expected to help alleviate concerns among staff members over the availability of shares to sell when the company goes public.

The company has informed employees that the vesting date, which marks the point at which shares granted as stock options become eligible for sale, will now take place in April, rather than the previously expected date in May. This change is seen as a sign that SpaceX is nearing a public filing for its initial public offering, which would be the largest in history if the company achieves its fundraise goal of as much as $75 billion. SpaceX is expected to file publicly later in May for the IPO and to price the week of June 15.

SpaceX's IPO Plans

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The accelerated vesting schedule change comes as Musk works to rebuild xAI, an artificial intelligence company acquired by SpaceX earlier this year. Musk is cutting staff and hiring new talent from other AI firms, following core employees, including some of the AI company's founding members, leaving the firm.

Comparison of IPO Timing

Companies going public typically indicate in their initial public offering filings with the US Securities and Exchange Commission how many shares will be eligible for sale on the first trading day, as well as stock options that have been granted to employees. Deliberations are ongoing, and details of the IPO, including timing, could change, the people said, asking not to be identified as the information isn't public. A representative for SpaceX did not immediately respond to a request for comment.

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Strong demand for SpaceX's stock, particularly from fans of Musk's companies, would create a windfall for existing shareholders. SpaceX would potentially be eligible to enter indexes such as the Nasdaq 100 within days of its debut, rather than previous minimum waiting periods measured in months. Such a move could turbo-charge the demand for shares, as funds tracking the indexes adjust to ensure they are aligned with their benchmarks.

An early investment in SpaceX has positioned Alphabet Inc. for a $100 billion gain, according to a filing, underscoring the vast wealth likely to be created by the rocket company's market debut.