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). But this warning seems tailored to prepare investors for the possibility of a major dilution event — like a future combination with Tesla.
