It was in 2002 that Elon Musk founded SpaceX with the dream of revolutionising space technology and possibly enabling humans to live on other planets. The American aerospace manufacturer is all set to go public in what is expected to be the largest initial public offering in the country's history.
It is believed that the company is targeting a fixed IPO price of $135 per share with an expected valuation of over $1.7 trillion. While many who have invested in SpaceX could benefit immensely from the IPO, those profiting the most are his employees, those who could only ever dream of such amounts of money at a time.
From Welder to Wealth: Juan Hernandez's Story
Among them is Juan Hernandez, who immigrated to the US from Mexico and learned how to weld since the pay was good. A decision that was made for a profitable livelihood led him to a job opportunity at SpaceX in 2015. “I didn’t even know what SpaceX was when my friend was talking about it, but the money was sufficient at the time,” he said to the Wall Street Journal.
At the time, the 42-year-old started as a contractor for $28 hour and was later converted to a full-time employee. He was given an equity stake valued at $10,000 that vested over five years. Like other employees, Hernandez could use a portion of his paycheck to buy more shares and he did so over the years.
In 2020, he began selling off small chunks of his stake when SpaceX hit a $36 billion valuation. He invested the money to buy properties around Texas and build a small real estate business with his wife. Today, his remaining shares are worth around $880,000 at the IPO price.
“It’s put me in a comfortable position for life,” said Hernandez, who left SpaceX last year. He now works as a welder on Blue Origin’s rocket-launch site.
An Employee Party: Wealth for All Roles
For years, SpaceX compensated many employees with not just their salaries but also company shares. At the time they were issued, some were valued at less than $2 per share. However, today, the per share is valued at $135. The result is a massive transfer of wealth to those who dedicatedly held on to their stock through the years.
Another talked about story is that of 27-year-old Maryellyn Musselman, a former engineering officer who worked aboard a SpaceX recovery vessel. Not only did she receive company stock in her compensation package, but she also invested 10% of every paycheck into additional company shares during her time at sea. Now, she could potentially become a millionaire, though she has left that fate to an "11th-hour decision."
The profits from SpaceX's windfall are not just limited to senior executives. Employees across roles such as engineers, welders, baristas and more who work at campuses in California, Texas and Florida. While employees and other insiders won't be able to sell their pre-IPO shares for a few months due to lockup periods, some could sell small quantities as soon as July.
Today, SpaceX's story has become not just that of a private company going public, but also how a corporate firm can help its employees grow alongside itself. For employees like Musselman and Hernandez who consistently invested portions of their checks, the years of patience, loyalty and belief could finally pay off.
