SpaceX IPO Locks Up Musk's Wealth in Equity. Here's What That Signals About the Company's Cash Strategy.
The SpaceX founder and CEO won't be selling his shares any time soon.
Overview
Elon Musk is the largest shareholder of Space Exploration Technologies (NASDAQ: SPCX), or SpaceX, with about a 42% stake. He also holds 82% of the voting power through ownership of Class B shares, effectively giving him full control of the leading space company.
While most SpaceX insiders can start selling their shares this year, Musk and certain other significant investors are subject to an extended lockup period. This structure is a positive sign for the company's shareholders and reveals aspects of SpaceX's financing strategy.
Image source: The Motley Fool.
Details
Source
Originally published at www.fool.com.
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