On June 17, Musk filed Form 4 with the SEC regarding his SpaceX equity holdings, disclosing a large-scale equity conversion after the IPO is completed. The main conversions occurred on the IPO completion date: multiple series of preferred stock automatically converted into Class B or Class A common stock in accordance with the bylaws. By contrast, sales in the public market totaled only 11,390 shares of Class A common stock at $105.318 per share.
Musk’s Automatic Conversion After SpaceX IPO: Multiple Series of Preferred Stock Convert to Class A Common Stock at a 50:1 Ratio
According to the SEC Form 4 filing, after the SpaceX IPO is completed (June 15, 2026), the company’s bylaws automatically complete the following major conversions (reflecting figures after the 1:5 stock split):
· 5,652,297 shares of Series C preferred stock → 282,614,850 shares of Class A common stock (50:1 ratio)
· 370,370 shares of Series H preferred stock → 18,518,500 shares of Class A common stock (50:1)
· 295,858 shares of Series I preferred stock → 14,792,900 shares of Class A common stock (50:1)
· Series A preferred stock → Class B common stock (50:1), including 57,494,561 shares in the revocable trust and 2,548,523 shares in the mission trust that Musk can revoke
· 5,002,400 shares of Series B preferred stock → 250,120,000 shares of Class B common stock (50:1)
· The above Class B common stock further converts into Class A common stock after the IPO is completed
Musk’s Revocable Trust Post-IPO SEC Filing Share Numbers
According to the SEC Form 4 filing, after the conversions are completed, Musk’s revocable trust holds the following major share amounts: approximately 842 million shares of Class A common stock; 3,788,654,145 shares of Class B common stock.
In addition, the mission trust holds 127,426,150 shares of Class B common stock; EM 2024 GRAT-A holds 7,402,770 shares of Class A common stock. Each share of Class B common stock can be converted at any time by the holder into 1 share of Class A common stock, with no expiration date; Class B common stock also automatically converts into Class A common stock when sold or upon certain transfers.
AI CEO Award: 302,072,285 Shares of Restricted Class B Common Stock Vest After Performance Conditions Are Met
The SEC filing shows that SpaceX granted Musk 302,072,285 shares of restricted Class B common stock as an AI CEO award, replacing the prior performance award (in the earlier version, the unrealized portion of 25,172,695 shares of Class A was canceled by the issuer on March 23, 2026).
The restricted shares above will vest after reaching specific performance conditions. For details of the performance conditions, see Musk’s Form 3 filing submitted on June 11, 2026. In addition, Musk holds an option to buy 350 million shares of Class B common stock with an exercise price of $8.3998 per share; the option has fully vested and remains valid until February 11, 2031.
FAQ
Why does Musk’s preferred stock automatically convert after the SpaceX IPO?
According to the footnote explanation in the SEC Form 4 filing, under the terms of SpaceX’s certificate of formation, Series A and Series B preferred stock automatically convert at a 50:1 ratio into Class B common stock after the IPO is completed; Series C, Series H, and Series I preferred stock automatically convert at a 50:1 ratio into Class A common stock after the IPO is completed. All figures reflect the 1:5 stock split implemented on May 4, 2026.
What is the difference between Class B and Class A common stock in Musk’s SPCX?
According to the footnote in the filing, Class B common stock has different voting rights (Musk’s voting share in SpaceX exceeds 84%; Class A is 1 vote per share and Class B is 10 votes per share). Class B common stock can be converted by holders at any time into 1 share of Class A common stock, and it automatically converts into Class A common stock upon sale or certain transfers, with no expiration date.
What is the significance of the 11,390 shares of Class A sold in the public market in this filing?
Compared with the billions of shares conversion operations carried out in the same period, the public market sale involved only 11,390 shares of Class A common stock ($105.318 per share, totaling approximately $1.2 million), an extremely small scale. This reflects that Musk did not conduct large-scale cash-outs before or around the IPO; the main actions involved conversions of stock categories within the trust structure rather than sales to external parties.
