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https://arstechnica.com/tech-policy/2026/05/report-spacex-ipo-gives-musk-unchecked-power-and-forbids-investor-lawsuits/
Direct article that was referenced: https://www.reuters.com/sustainability/boards-policy-regulation/spacex-ipo-gives-musk-sweeping-power-curbs-shareholder-rights-2026-05-06/
> SpaceX’s plan to go public will reportedly give CEO Elon Musk “virtually unchecked executive authority” and limit the rights of shareholders to sue the company. The plan, reported by Reuters today, could prevent shareholder lawsuits like the one that held up a lucrative Musk pay package at Tesla.
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> The SpaceX IPO will prevent shareholder lawsuits by “mak[ing] it clear that anyone who owns shares ‘irrevocably and unconditionally’ waives all rights to pursue a jury trial,” Reuters wrote. “Shareholders will also be prohibited from bringing class actions against the company, its directors, officers, controlling shareholders or bankers tied to the IPO, according to the filing.”
> Musk will reportedly have the power to “elect, remove or fill any vacancy” on the board of directors, and “the power to control other issues requiring shareholder approval, including M&A transactions, potentially making it easier to merge with Tesla later if he wants,” Reuters wrote. He currently owns 42.5 percent of SpaceX’s equity, has 83.8 percent of the voting control, and will maintain over 50 percent of the voting power after it goes public, the article said.
> Musk’s majority control via supervoting shares will make SpaceX a “controlled company” under securities rules, meaning it won’t have to follow the typical requirement to have independent directors form a majority of the nominating and compensation committees, Reuters wrote. Musk is slated to be both the CEO and board chairman.
> SpaceX’s IPO filing is confidential, allowing the firm to move forward without yet revealing detailed financial information. We contacted SpaceX about the Reuters report today and will update this article if it provides a response.
> Bruce Herbert, CEO of Newground Social Investment, told Reuters that the plan “closes the voting door, the courthouse door and the proposal door simultaneously. It’s unprecedented in terms of creating a total lack of accountability.” Newground previously tried to prevent Tesla from using a Texas law that bars investors from filing shareholder resolutions unless they own at least $1 million of stock.
TLDR: Owners of SpaceX shares will have no say over SpaceX operations. This would potentially include the likes of Vanguard and Blackrock via their index funds that buy SpaceX shares as part of the IPO fast-track rule being implemented by indexes such as S&P500.