SpaceX says it may issue ‘significant’ equity in ‘future transactions’

Key Takeaways

• SpaceX is warning investors that it may dole out “significant equity” in “future transactions” following its upcoming IPO — language that was added amid constant industry gossip that CEO Elon Musk ultimately plans to merge his space-and-AI company with Tesla.
• The new language was tucked deep in the risk factors section of SpaceX’s first official amendment to its IPO filing, which was made public last month.
• The company tacked this sentence onto the end of the first paragraph of a risk about how mergers and acquisitions may go sideways We may issue a significant amount of equity in connection with future transactions.
• SpaceX has been busy with M&A, acquiring Musk’s AI company xAI last year, and recently entering into a deal with Cursor that includes an option to buy the startup for $60 billion in stock following the IPO.
• It’s certainly possible that SpaceX will have other targets in mind after it raises a reported $75 billion when it lists on the Nasdaq exchange (minus $20 billion committed to paying down former xAI and X debt).