Internal SpaceX documents reveal lucrative stock deals offered to investors such as a16z and Gigafund.
SpaceX occasionally permits its employees to sell shares to authorized outside investors, a practice known as a tender offer. A recent internal document obtained by TechCrunch reveals details of such an offer from May 2022. SpaceX founder Elon Musk mentioned that these sales occur approximately every six months.
During this particular tender offer, investors were able to purchase shares from SpaceX employees at $70 per share. This price stands in stark contrast to primary round investments where shares were priced significantly higher, such as $270 in 2022 and $77.46 during SpaceX’s Series G in 2015.
The significant discount for employees’ shares is largely due to the fact that they hold common stock, whereas primary round investors typically acquire preferred stock with additional benefits like dividends and priority during liquidation events. If SpaceX were to sell itself, preferred shareholders would be entitled to the first $6.67 billion, a figure likely increased by recent funding rounds.
Despite not offering dividends historically, SpaceX has authorized the potential for fixed dividends should its board decide to declare them. These dividends would vary based on when investors acquired their shares, ranging from minimal amounts for early rounds to over $10 per share for later rounds.
Employees benefited from a 10-for-1 stock split of their Class A, B, and C common shares in February 2022. Unlike preferred shares, which were unaffected by the split, common shares vary in voting rights and remain the primary means for employees to sell their shares until SpaceX potentially goes public.
Only a select few investors were authorized to participate in this tender offer, notably including:
- Andreessen Horowitz (a16z), purchasing nearly 4.3 million shares for approximately $300 million.
- Aliya Capital Partners, associated with Aliya Growth Fund, buying over 1.4 million shares for nearly $100 million.
- Gigafund, acquiring more than 1.4 million shares at a cost of nearly $100 million.
- 137 Ventures, purchasing just under 1.1 million shares for nearly $75 million.
- Point 2 Prove Investment, buying 1 million shares for $70 million.
- Atreides Management, through Atreides Special Circumstances Fund, acquiring nearly 429,000 shares for nearly $30 million.
- TCP Exploration Fund 2022, buying over 357,000 shares for nearly $25 million.
These investors, many of whom have historical ties or vocal support for SpaceX and Musk, were chosen as authorized buyers for the secondary shares. SpaceX and the involved funds declined to comment on these transactions.
