Musk’s long-time backer is giving SpaceX stock to its investors

In Brief

VC steadfast Valor Equity Partners, founded by Antonio Gracias, a long-time Elon Musk backer and existent SpaceX committee member, has opted to simply springiness distant a chunk of its SpaceX banal to its constricted spouse investors, according to an SEC filing spotted by Bloomberg.

Valor made a sidesplitting connected SpaceX aft investing successful it implicit decades, with entities controlled by Gracias owning much than 500 cardinal shares astatine the clip of the IPO. This was second lone to Musk (who owned implicit 6 cardinal shares astatine the time). But alternatively of cashing retired and issuing returns to LPs, Valor handed implicit 8.5% of its holdings to them, worthy astir $8.5 billion, Bloomberg estimates. Valor volition inactive ain much than 460 cardinal shares aft the giveaway, the SEC disclosure signifier says.

Transferring ownership of the shares could springiness those Valor constricted partners a taxation advantage. More importantly, it avoids dumping a elephantine tranche of shares into the unfastened market. Such a dump could origin a glut of disposable shares and a corresponding dip successful price. SpaceX is already down astir 10% since its blockbuster IPO day.

Subscribe for the industry’s biggest tech news