Musk has mused about combining his companies for many years, and the SpaceX IPO is only heating up the chatter that he will finally bring his two biggest entities together. A merger of this size would face a number of legal and potential regulatory challenges, and would likely have to pass a shareholder vote at Tesla. But, as the IPO filing showed, Musk has supreme voting power at SpaceX; the only person who could vote down a merger on that side of the term sheet would be Musk.
Musk’s voting power at SpaceX would not be at risk during a major dilution event. SpaceX has three primary classes of shares heading into this IPO. They all have the same basic economic rights, but different voting rights.
The Class A shares are what will be sold to the public and come with one vote per share. The Class B shares are owned exclusively by Musk and have 10 votes per share. SpaceX also has Class C common stock, which comes with no voting rights at all. While those Class C shares are currently used for executive compensation, Musk could use those shares to buy other companies without diluting his power. (SpaceX also has Class D shares set aside, which have reduced economic rights; the company has not yet decided on whether those shares will have any voting power.)
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