In addition to renovating hotels, Lavoie is already planning other uses of his wealth. One of his wishes is to help the town where he lives to bid farewell to coal-fired heating and switch to cleaner heating methods. "I don't want to die with a bunch of money in the bank," Lavoie said. After Elon Musk's SpaceX officially lands on the U.S. stock market, Lavoie will become one of the thousands of current and former employees who will usher in the equity liquidation window. The rocket and satellite giant is about to launch the largest IPO in history. On the eve of the listing, the company's valuation has skyrocketed, and the value of the equity held by employees has increased.
This year in Texas, the United States, the SpaceX starship was ignited and lifted off with a super-heavy booster. Fire and smoke billowed out from the bottom of the launch pad, and a giant launch tower stood beside it.
Former SpaceX engineer J.Andre Lavoie
The beneficiaries include not only white-collar workers such as engineers, but also a large number of rocket assembly technical workers, as well as baristas and general contract employees in stores in major parks in California, Texas, and Florida. Many employees were awarded equity shares worth less than $2 a share, before the company had even successfully recycled its rocket. After many subsequent stock splits, the corporate valuation has soared, and the value of employee stockholdings has doubled.
SpaceX’s planned issuance price for this IPO is US$135 per share, corresponding to an overall corporate valuation of approximately US$1.77 trillion. The company’s long-term goal is to colonize Mars.
Due to the listing lock-up period, insiders cannot sell their original shares in a concentrated manner within a few months after listing to avoid concentrated selling and impact on the stock price; however, the company's supporting rules stipulate that some employees can sell small amounts of their holdings as early as July this year.
Marilyn Musselman, 27, has not yet decided whether to cash out immediately.
"I'm going to wait until the last moment before making a decision."
Musselman joined SpaceX in 2022. During his tenure, he took the initiative to use 10% of his salary to subscribe for additional equity every month. In addition, the entry compensation system originally allocated equity incentives. Her position is as a marine engineering crew member, responsible for salvaging the wreckage of a rocket that crashed into the sea off the coast of Florida.
When she entered the industry, she knew it was a risky investment, but she was determined that the appreciation of the equity would help her start a business in the future. "It has historically been rare for seafarer positions to receive company equity and enjoy equity incentive benefits."
She did not disclose the current value of her stock holdings, but her long-term goal is to open an equipment repair shop in Chesapeake, Virginia.
For many years, SpaceX has opened about two rounds of internal equity transfers in the secondary market every year, and a large number of old employees have already reduced their holdings in batches and liquidated some of their shares.
Lavoie, a 63-year-old employee who resigned in 2015, has seen his shareholdings skyrocket year after year, and his financial management and life plans have been repeatedly changed: "The stock price has skyrocketed every year, and my life plan has been constantly disrupted."
Many former employees interviewed revealed that they relied on reducing their equity holdings to pay off their spouses' student loans, buy summer homes for their parents, bear the cost of infertility treatment, or raise enough start-up funds to start their favorite businesses.
Juan Hernandez is also one of those whose equity changed lives. This Mexican immigrant entered the welding industry for high salary in his early years. In 2015, he applied for SpaceX after being introduced by a friend.
“When my friend told me about this company, I didn’t even know what SpaceX was, I just knew that the salary was very good,” said Hernandez, now 42 years old.
He initially joined the company as a temporary worker, earning $28 an hour, and later became a regular employee and received equity incentives with an initial value of $10,000, exercisable over five years. Like other colleagues, he deducts money from his salary all year round to buy additional company stocks.
In 2020, the valuation of SpaceX hit US$360 billion. Hernandez began to cash out small amounts in batches, using the cashed-out funds to purchase multiple properties in Texas, and started a small real estate business in partnership with his wife.
Based on the IPO issue price, the remaining equity in his hands is worth approximately US$880,000. "This wealth is enough for me to have food and clothing for the rest of my life." Hernandez resigned from SpaceX last year and currently works as a welder at the Blue Origin rocket launch site.