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Elon Musk Ownership Of SpaceX Stock Drops Below 50%, Filings Reveal

Elon Musk owns less than half of SpaceX’s shares, but he continues to have control over the decisions made by the company.

The shareholdings of SpaceX chief Elon Musk have reduced over the past three years. He created the company back in 2002. He wanted to reduce the costs of space exploration by developing reusable rockets.

Musk believes that cost is a vital metric for enabling humans to build colonies on other planets in the solar system. SpaceX gained significant attention from investors. This was understandable considering the company’s successes with NASA (National Aeronautics and Space Administration). Moreover, its cargo deliveries to the ISS (International Space Station), and the Falcon 9 rocket grabbed their attention too.

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With a considerable number of investors deviating their focus on SpaceX, the company’s equity value started growing. On the downside, his company’s equity value began to drop. Musk’s shareholdings are held via a trust in his name.

SpaceX has made with the FCC (Federal Communications Commission) with Musk owing 43.61 percent of SpaceX’s outstanding stock as of Aug. 2021, according to filings. This shred of information was revealed by an attachment (via WCCFtech) that was created during a filing made in Aug. for Starlink satellite internet service.

An excerpt from SpaceX's recent FCC fling-min
Credit: WCCFtech

SpaceX has shed light on its plan for the network’s second-generation satellites in the aforesaid filing. This second-generation satellite involves the Starship next-generation launch vehicle system, which is still in development in Boca Chica, Texas.

This represents the lowest percentage of stock owned by Musk in recent times as compared to similar filings from 2018 to 2020. Two years ago, SpaceX had urged the FCC to permit it to reduce the altitudes of its satellites. The commission granted this request earlier this year, despite its competitors claiming that the changes would affect their services.

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According to last year’s filing, Musk owned 47.4 percent of SpaceX’s outstanding shares by Apr. 2020. This ownership is through a trust called the Elon Musk Revocable Trust. The executive is the sole beneficiary.

Furthermore, the publicly available filing for Apr. suggests that Musk’s ownership of SpaceX’s stock dropped under 50 percent. Aside from that, a filing listed in Nov. 2018, showed that he had a 50.4 percent share of SpaceX.

Despite owning less than half of SpaceX’s shares, Musk retains total control over the company. The Aug. 2021 filing reveals that Musk has control over a whopping 78 percent of the voting shares. Moreover, they enable the owners to make decisions for the company.

The percentage of the voting shares Musk controlled has reduced by just 1 percent over the past three years, compared to his overall ownership of SpaceX’s outstanding shares. His trust had voting control of 78.7 percent of SpaceX’s outstanding shares in 2018. Regrettably, this dropped by 0.4 percent in 2020, and by another 0.3 percent in Aug.

With its successful NASA missions and the regular cadence of Falcon 9 launches, SpaceX has been on a capital raising spree. According to a revised SpaceX filing with the SEC (Securities and Exchange Commission) made in Apr. indicated that the company raised $1.2 billion in the capital, with 99 investors.

Sana Khan

Sana Khan

Product of the '90s.

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