SpaceX now confidentially filing to go public in what would be one of the biggest IPOs ever,

reportedly expected to allocate as much as 30% of shares for retail.

Our Derbosa has more on that in today's tech check. Morning, Dee.

Hey, good morning, Carl. So Elon Musk, he's selling loyalty disguised as access here,

and Wall Street is helping him do it.

The norm is 5 to 10% retail allocation in an IPO, but Musk wants his following in the stock, not just because they will buy, but because they'll stay and they'll likely vote the way he wants.

Now, he saw this at Tesla where retail owns about 30%.

When a Delaware court struck down his $56 billion pay package and called it unfair,

retail shareholders, they voted to reinstate it anyway.

And then last year, they approved a new one worth up to a trillion dollars.

That was the largest in corporate history, even over the objections of every major proxy

advisors and some institutions.

Now, Musk wants to build that same structure into SpaceX from the jump, except this time

it's a company with no track record, as one source tells me if he actually needs 30% from

retail, that tells you something about the price.

Now, the only real precedent is Saudi Aramco, which also

gave retail about a third of shares in its listing back in 2019. Now, that was widely understood

as a loyalty play, nationalistic play, not a market clearing price. And the stock, it went sideways

for years, if you look at that across its history. Retail access, it is a good thing when the price is right, of course.

But if SpaceX proves you can hold a $1.7 trillion valuation by loading up on retail.

It could also set a precedent for the other blockbuster IPOs this year.

No doubt, Open AI and Anthropic are watching this.

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