SpaceX OKs super-voting award tied to $7.5T valuation, Mars

SpaceX’s board approved a super-voting stock award in January that could grant Elon Musk as many as 200 million restricted Class B shares if the company reaches a $7.5 trillion market valuation and establishes a permanent human settlement on Mars with at least 1 million residents. The plan was disclosed in a recent private registration filing with the U.S. Securities and Exchange Commission.

A separate award dated March 23 could provide up to 60.4 million additional restricted Class B shares tied to separate company valuation milestones and to the operation of space-based data centers that deliver at least 100 terawatts of computing power. One hundred terawatts equals 100,000 gigawatts.

Both awards use Class B restricted shares, which carry 10 votes per share compared with one vote for Class A shares. The shares vest in stages as the company meets the board’s targets; Musk would receive none of the granted shares if the conditions are not met. The plan does not set a firm calendar deadline for the milestones but requires Musk to remain employed by SpaceX. Since 2019, SpaceX has paid him an annual salary of $54,080.

SpaceX remains privately held. The company is preparing for a possible initial public offering around June 28 that could value the business at about $1.75 trillion. Because the stock is not publicly traded, SpaceX did not assign a precise dollar value to the award in the filing. Musk already held 68.8 million Class B stock options as of Dec. 31, with a strike price near $42 and expiration in 2031.

Some corporate governance experts say investors in companies Musk runs may question how he divides his attention when large performance targets are attached to his compensation at multiple firms. The use of super‑voting shares would increase concentrated voting power if the awards vest.

Separately, SpaceX reached a settlement with the California Coastal Commission related to a lawsuit filed after SpaceX alleged political bias during the commission’s review of its Falcon 9 launch program. The settlement, filed in federal court in Los Angeles, included an apology and language stating that the commission “may not consider irrelevant factors in performing its function and specifically agrees that it will not take into account the perceived political beliefs, political speech, or labor practices of SpaceX or its officers in considering any regulatory action concerning SpaceX.”

If the performance targets are met, the awards would increase Musk’s equity and voting control at SpaceX; if the conditions are not met, he would receive no additional shares under the terms disclosed in the filing.