SpaceX moves up vesting schedule for employee shares before IPO

SpaceX has moved up a scheduled vesting date for shares awarded to employees to as soon as next week, according to people familiar with the matter, ahead of an IPO targeted to value the company at more than $2 trillion.

The company told employees the vesting date — when shares granted as stock options become eligible for sale — would take place in April rather than the expected date in May, the people said. The accelerated vesting is expected to help assuage staffers’ concerns over how much stock they have available to sell when the company goes public.

The move is another sign that billionaire Elon Musk’s rocket, satellite and artificial intelligence company is nearing a public filing for its initial public offering, which would be the biggest of all time if the company achieves its fundraise goal of as much as $75 billion. SpaceX is expected to file publicly later in May for the IPO and to price the week of June 15, people familiar with the matter have said.

The vesting schedule change would also happen as Musk works to rebuild xAI, which was acquired by SpaceX earlier this year. The billionaire is cutting staff and hiring new talent from other AI firms, after core employees, including some of the AI company’s founding members, left the firm.

Companies going public typically indicate in their initial public offering filings with the US Securities and Exchange Commission how many shares will be eligible for sale on the first trading day, as well as stock options that have been granted to employees.

Deliberations are ongoing and details of the IPO including timing could change, the people said, asking not to be identified as the information isn’t public. A representative for SpaceX didn’t immediately respond to a request for comment.

Strong demand for SpaceX’s stock — particularly from fans of Musk’s companies — would create a windfall for existing shareholders. SpaceX would potentially be eligible to enter indexes such as the Nasdaq 100 within days of its debut, rather than previous minimum waiting periods measured in months. Such a move could turbo-charge the demand for shares, as funds tracking the indexes adjust to make sure they are aligned with their benchmarks.

An early investment in SpaceX has positioned Alphabet Inc. for a $100 billion gain, according to a filing, underscoring the vast wealth likely to be created by the rocket company’s market debut.