Elon Musk expands SpaceX stake as company prepares for listing: Report

The shares are expected to vest in stages as the company's market capitalisation increases in increments of $500 billion, the report added.

Elon Musk increased his stake in SpaceX last year by purchasing about $1.4 billion worth of shares from current and former employees, according to a report by The Information.

The transaction was carried out through Musk's trust and was disclosed in a draft of the company's confidential IPO prospectus, the report said.

The filing also outlined a compensation plan under which Musk could receive 60 million additional shares if SpaceX's valuation rises from about $1.1 trillion to as much as $6.6 trillion. The award is also linked to the company executing plans to build data centres in space aimed at providing computing capacity for artificial intelligence developers.

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The shares are expected to vest in stages as the company's market capitalisation increases in increments of $500 billion, the report added.

Reuters could not independently verify the details, and SpaceX did not respond to a request for comment.

The company confidentially filed for a public listing in the United States in March. Earlier reports indicated that SpaceX generated around $8 billion in profit last year on revenue estimated between $15 billion and $16 billion.

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The proposed IPO structure includes dual-class shares, with Class B shares carrying 10 votes each, while Class A shares offered to public investors would have one vote each, allowing Musk and other insiders to retain control.