By JBizNews Desk

In an amended prospectus filed with the Securities and Exchange Commission on June 1, Space Exploration Technologies Corp., better known as SpaceX, disclosed that it will reserve up to 5% of the shares in its upcoming stock offering for employees and for friends and family of senior executives.

The disclosure marks the first time the company has publicly detailed the size of its directed-share program.

For thousands of SpaceX employees who spent years accepting lower cash compensation in exchange for company stock, the announcement brings a long-awaited moment within reach.

SpaceX has set a fixed offering price of $135 per share and plans to sell approximately 555.6 million shares, raising roughly $75 billion.

At that valuation, Elon Musk’s rocket and satellite company would be worth approximately $1.77 trillion, making it the seventh-largest company in America and larger than Tesla by market value.

The stock is expected to trade on the Nasdaq under the ticker SPCX.

The timeline is moving quickly.

The company began its investor roadshow on June 4, plans to price the offering on June 11, and expects shares to begin trading on June 12.

If completed as planned, the transaction would become the largest stock-market debut in history, surpassing the 2019 Saudi Aramco offering.

The Payoff for Employees

For many SpaceX workers, the IPO represents more than a corporate milestone.

It is the event that finally allows years of stock compensation to become liquid.

SpaceX has long been known for paying below-market cash salaries relative to some competitors while compensating key talent through stock awards, particularly engineers and technical specialists.

Most of those awards were granted as restricted stock units (RSUs) that vest over time, typically across three to five years of employment.

Once vested, employees own the shares outright. What many lacked until now was a public market in which to sell them.

The IPO changes that.

Earlier this year, SpaceX also adjusted certain vesting provisions to allow employees to access and sell a larger portion of their holdings sooner, a move widely viewed as a response to employee concerns about turning paper wealth into real cash.

A Rare Benefit

The directed-share program contains an unusual feature.

According to the filing, employees, friends, and family participating in the allocation program will not be subject to a traditional IPO lock-up period.

Most newly public companies prohibit insiders from selling shares for several months after an IPO.

SpaceX’s program would allow eligible participants significantly more flexibility.

Morgan Stanley, one of the lead underwriters, is administering the directed-share offering.

The Biggest Winners

While thousands of employees stand to benefit, some of the largest gains are concentrated among senior leadership and early insiders.

Holdings owned by Chief Operating Officer Gwynne Shotwell and Chief Financial Officer Bret Johnsen are each expected to be worth more than $1 billion at the offering valuation.

Board member Antonio Gracias, founder of Valor Equity Partners, owns approximately 503 million shares, a stake valued at more than $70 billion.

Director Luke Nosek holds shares worth roughly $5 billion.

Musk remains firmly in command.

Following the offering, he is expected to retain more than 82% of SpaceX’s voting power, preserving effective control of the company.

The Tax Surprise

For employees, the biggest challenge may not be deciding whether to sell.

It may be taxes.

Restricted stock is generally taxed as ordinary income when it vests, regardless of whether the employee immediately sells the shares.

Financial advisers have spent months warning SpaceX employees to coordinate vesting schedules with opportunities to sell stock so they do not face large tax obligations without sufficient liquidity.

Standard withholding rates—typically 22% and 37% on income above $1 million—often fail to cover the full tax burden for high earners.

In some cases, employees could face tax shortfalls worth hundreds of thousands of dollars.

Not Everyone Agrees on the Valuation

The IPO’s enormous valuation has also drawn skepticism.

SpaceX reported a net loss of approximately $4.94 billion in 2025, reversing a profitable performance in 2024, and disclosed an accumulated deficit of roughly $41.3 billion.

Research firm Morningstar estimates the company’s fair value at approximately $780 billion, well below the roughly $1.75 trillion valuation implied by the offering.

For employees deciding whether to hold or sell, that difference matters.

History shows that many highly anticipated technology IPOs experience sharp pullbacks after their initial surge, with some giving back 20% to 40% of their gains within the first few months.

For a workforce that spent years accepting stock in place of larger paychecks, June 12 could become one of the most consequential days in company history.

After years of betting on Elon Musk’s vision, employees are about to learn what that bet is worth.

JBizNews Desk — Markets & Technology

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