Stock exchange transaction

SpaceX’s long-anticipated IPO is hours away from reshaping the fortunes of thousands of employees.

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The listing, set for this Friday, is expected to mint millionaires not only among senior engineers and executives, but also among blue-collar workers, including cooks and welders, who received equity as part of their compensation packages.

The windfall is heavily concentrated around Brownsville, Texas, one of the poorest cities in the US, where SpaceX employs more than 3,000 people at its Starbase facility.

What makes this IPO unusual, even by Silicon Valley standards, is how far down the organisational chart the equity grants appear to have reached.

Some estimates cited by media reports put the total number of newly minted millionaires across the entire company at around 4,000. However, the figures could not be independently verified.

Michael Limas, a financial planner based in Brownsville, told Bloomberg that several of the company’s non-technical workers received stock options as part of their pay.

“SpaceX has been very friendly with options at various levels, from top to bottom. It’s something that’s unique to this area,” Limas stated.

One example cited by the investment research platform Moby illustrates the scale rather starkly. A welder’s initial equity grant of $10,000 (€8,650) is now reportedly valued at close to $880,000 (€762,000) ahead of the listing.

These individual figures reflect a broader picture of generous equity compensation that has been reported consistently across multiple outlets.

The IPO itself features a staggered lockup structure rather than the standard 180-day cliff that most companies employ.

According to the prospectus, it includes multiple early release windows, among them a performance-linked mechanism that would activate if the stock trades 30% above its IPO price on five out of ten consecutive trading days. That would allow some employees to access their new wealth within weeks of the debut.

Brownsville braces for the ripple effects

SpaceX’s impact on the region has already been striking, and the financial gains generated by the IPO are likely to amplify it.

Brownsville has long ranked among the most economically deprived cities in the US, with a median family income roughly a third below the national average, according to government data.

SpaceX arrived about a decade ago, establishing its Starbase launch facility on the Gulf of Mexico shore around 40 kilometres from the city centre.

The transformation since then has reportedly been marked by an influx of professionals from California and elsewhere. Rising housing costs have followed, as they often do when wealth becomes concentrated in a particular area.

According to several realtors and economists, the median housing prices in the broader Brownsville-Harlingen metro area have risen roughly 25% since 2020, from around $185,000 (€160,000) to $233,000 (€201,000).

Long-time residents, many of them on modest incomes, are feeling the pressure.

For many employees, the transition from holding shares they could not easily sell to having access to cash brings its own complications.

According to Bloomberg, wealth managers in the region describe a climate of considerable anxiety among staff, given the sense that this may be their single opportunity to build generational wealth and that getting the timing and tax planning wrong could be costly.

More than 100 SpaceX employees in the region reportedly pooled together to negotiate wealth-management terms collectively with the advisory firm Choreo, a move that helped them secure lower management fees by bringing between $1 billion (€865mn) and $5 billion (€4.33bn) in potential assets to the table.

Brownsville’s mayor, John Cowen, a sixth-generation resident of the area, has sought to frame the transformation in positive terms, arguing to US media that it is great for the city to be known as a place for investment.

Beyond SpaceX itself, other industrial projects have followed in the company’s wake, including building a liquefied natural gas export terminal near the Port of Brownsville.

Back in March, US President Donald Trump also announced the construction of a $300 billion (€260bn) oil refinery at the port, which could reportedly bring 500 full-time jobs.

Whether the IPO ultimately delivers on its promise, and how equitably its benefits filter through a city that has known far more hardship than prosperity, remains to be seen.

SpaceX founder Elon Musk announced plans on Wednesday for one of the biggest stock sales ever, by taking a space company public that is currently losing billions of dollars a year.

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A filing shows that SpaceX lost $2.6 billion (€2.24bn) from operations last year on $18.7 billion in revenue, and the losses continued at the start of this year.

The prospectus did not put a dollar figure on the amount Musk hopes to raise, but various reports have estimated it at around $75bn (€64.5bn). An offering of that size would easily surpass the current title holder, Saudi Aramco, the oil giant that went public seven years ago and raised $26bn (€22.4bn).

SpaceX, formally known as Space Exploration Technologies Corp., said the money will help finance projects to put people on the Moon and Mars, as part of its goal to make humans an interplanetary species in the face of existential threats that could wipe out civilisation.

“We do not want humans to have the same fate as dinosaurs,” the filing states.

The prospectus reads, in part, like a Hollywood-style vision of the future, detailing in one section that part of Musk’s compensation will be granted only if he maintains “a permanent human colony on Mars with at least one million inhabitants.”

Short of that, the stock sale alone could make Musk — the founder and a major shareholder of SpaceX — the world’s first trillionaire. Forbes currently estimates his net worth at $839bn (€722bn), roughly equivalent to Poland’s annual GDP.

Losses mount despite strong revenue and Starlink growth

In addition to making reusable rockets to send astronauts into orbit, SpaceX has other businesses, some successful and others struggling, with plenty of question marks.

The document shows that Starlink, the world’s largest satellite communications company, is a major source of cash, generating $4.4bn (€3.8bn) in operating income last year. The business uses 10,000 satellites in low orbit to provide internet service to 10 million people in 150 countries and territories.

Among the struggling businesses are two Musk ventures recently acquired by SpaceX — his social media platform X, formerly Twitter, and his artificial intelligence firm xAI. Those purchases were criticised by some SpaceX investors as bailouts, as both are significant loss-makers.

The prospectus said its AI business lost $6.4bn (€5.5bn) from operations last year.

The original SpaceX business — building rockets and conducting launches — has benefited from major government contracts, raising questions that could come back to affect the company. Given Musk’s close ties to the Trump administration, government ethics lawyers and watchdogs have questioned whether he received preferential treatment in securing taxpayer-funded contracts, and whether that support will continue once Donald Trump leaves office.

SpaceX has won contracts worth $6bn (€5.2bn) from NASA, the Defence Department and other government agencies over the past five years, according to USAspending.gov. The company noted in its filing that one-fifth of its revenue last year came from the federal government.

Musk was the biggest donor to Trump’s presidential campaign and remains a major backer, despite a sometimes rocky relationship following his role in the government cost-cutting effort known as DOGE early last year.

Musk’s pay tied to ambitious targets as he retains firm control

Like many corporate CEOs, Musk’s compensation goes far beyond his annual salary, which was $54,080 (€46,538.5)in 2025 and has remained unchanged since 2019, according to the filing.

The prospectus says stock grants for him will be divided into 15 nearly equal tranches — 67 million shares each — and will vest only as the company reaches preset market capitalisation targets. In addition to the Mars colony milestone, SpaceX’s market value would need to reach $7.5 trillion (€6.45tr) for him to receive the full award.

He would receive additional stock awards if SpaceX succeeds in deploying giant data centres the size of football fields in space.

The document shows Musk will retain significant control over the business.

It states that he and certain other shareholders will receive shares in a special class of stock that gives them 10 votes per share. These shareholders will be able, among other things, to elect a majority of the company’s board of directors.

“This will limit or preclude your ability to influence corporate matters and the election of our directors,” SpaceX said in a warning to prospective investors.

SpaceX will be able to market the offering to investors — in what is known on Wall Street as a “roadshow” — 15 days after making its prospectus public. In this case, that would be 4 June.