SpaceX’s upcoming Initial Public Offering (IPO) appears to be granting CEO Elon Musk virtually unchecked executive authority, while severely curtailing the rights of shareholders. According to reports by Reuters, SpaceX is combining supervoting shares with mandatory arbitration and stricter shareholder proposal rules, providing Musk and insiders broad control over the company.

The policies reportedly ‘will erode typical shareholder protections in unprecedented ways.’ Shareholders will be prohibited from bringing class action lawsuits against the company or its directors. Moreover, Musk retains majority control through supervoting shares, meaning no one except himself can oust him as CEO.

SpaceX has also planned to enforce a mandatory arbitration clause, benefiting from a September 2025 policy statement by the Securities and Exchange Commission which states that such provisions are not inconsistent with federal securities laws. This could make it difficult for shareholders to challenge corporate actions in court.

Musk will retain significant control over board elections and other shareholder approval issues, potentially making it easier to merge SpaceX with Tesla if he desires. Currently owning 42.5% of SpaceX’s equity and having 83.8% voting control, his dominance post-IPO would be even more pronounced.

The move raises questions about the balance between corporate governance and personal power in the tech industry. While some might see it as an ordinary business practice, others fear the implications for shareholder rights and corporate accountability.