Proposal Grants Tesla Shareholders Priority SpaceX Access
On Saturday, December 20, 2025, Pershing Square CEO Bill Ackman publicly proposed a plan to take SpaceX public by merging it with his Pershing Square SPARC Holdings. The proposition, made in a post on X, is designed to grant Tesla (TSLA) shareholders priority access to invest in the private aerospace company. The structure would distribute special purpose acquisition rights, or SPARs, to Tesla's investors, allowing them to either invest directly in SpaceX or cash out their rights. The move aligns with Elon Musk's previously stated desire to give his supporters ownership access to SpaceX.
This would reward loyal Tesla shareholders with the opportunity to invest in SpaceX, while totally democratizing the IPO process.
— Bill Ackman, CEO of Pershing Square Capital Management
SPARC Structure Could Raise Up to $148.7 Billion
The proposed deal would distribute 0.5 SPARs for each Tesla share, creating approximately 1.723 billion SPARs. Each SPAR would be exercisable for two shares of SpaceX, establishing an investor-friendly capitalization of 100% common stock with no underwriting fees or shareholder warrants. Ackman outlined two potential capital-raising scenarios: an exercise price of $11.03 per SPAR would raise $42 billion, while a price of $42 per SPAR would generate a massive $148.7 billion. Pershing Square committed to a 45-day window for due diligence, targeting a definitive agreement announcement by mid-February.
Deal Includes Future Rights to Musk's xAI
A key incentive embedded in the proposal is future access to Elon Musk's other high-profile venture, xAI. SPAR holders who exercise their rights to buy into SpaceX would also receive new SPARs for a potential future public offering of the artificial intelligence company. The proposal comes as SpaceX is reportedly preparing for a potential IPO at a valuation that could reach $1.5 trillion, vastly exceeding its aerospace competitors. This innovative SPARC structure could provide the capital and public market access for SpaceX's next phase of growth.
