On December 20, Bill Ackman announced on social media that SPARC would distribute Special Purpose Acquisition Rights (SPARs) to Tesla Motors shareholders, enabling them to invest directly in SpaceX or monetize their rights.
Under Ackman’s proposal, each Tesla Motors share would receive approximately 0.5 SPARs, totaling 1.723 billion SPARs (including 61.1 million already outstanding). Each SPAR can be exchanged for two SpaceX shares, implying an allocation of 3.446 billion shares. This structure eliminates underwriting fees, founder shares, and warrants while maintaining a 100% common equity capital structure.
The proposal aligns with SpaceX CEO Elon Musk’s earlier remarks at Tesla’s November shareholder meeting, where he expressed a desire for Tesla supporters to gain investment access to SpaceX. Ackman wrote, “This allows loyal Tesla shareholders to invest in SpaceX (or cash out their SPARs) while democratizing the IPO process entirely.”
Ackman also hinted at an additional incentive: SPAR holders exercising their options would receive Pershing Square SPARC Holdings II SPARs, potentially usable in a future IPO of Musk’s AI venture, xAI.
The plan offers significant fundraising flexibility. If SPARs are priced at $11.03 per share, SpaceX could raise approximately $42 billion, with $38 billion from SPAR exercises and $4 billion from Pershing Square. At $42 per share, funding could surge to $148.7 billion, matching market expectations.
SpaceX is reportedly preparing for a potential IPO with a valuation as high as $1.5 trillion, which could make it the largest IPO in history. Sources indicate Musk, previously inclined to keep SpaceX private, has reconsidered due to rising valuations and the success of Starlink.
Ackman concluded, “The world’s most innovative and efficient rocket company deserves the most innovative, efficient, and fair path to public markets—for Tesla shareholders and beyond. Onward to Mars!”
Reuters reported that Morgan Stanley is favored as the lead underwriter for SpaceX’s IPO, leveraging its close ties with Musk. However, the selection process remains ongoing, with Goldman Sachs and JPMorgan also competing for roles.
Separately, SpaceX submitted a “streamlined” lunar mission plan to NASA on October 30 amid criticism over delays in its lunar lander development. The company highlighted 49 milestones achieved, including debris protection tests and life-support system demonstrations. A key test for its Starship rocket and in-space refueling is planned for next year.
NASA’s acting administrator, Sean Duffy, recently criticized SpaceX’s progress, prompting the agency to open lunar lander bidding to competitors like Blue Origin. SpaceX secured a $2.9 billion NASA contract in 2021 for lunar lander development.
NASA’s Artemis program, aiming to return humans to the Moon, has faced repeated delays due to technical setbacks, pushing back crewed missions like Artemis II and III.
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