SpaceX employees awaiting a potential IPO windfall are already eyeing luxury homes, Rolexes and private jet travel, according to CNBC.
The anticipated SpaceX IPO is already rippling through the luxury economy, with current and former employees planning purchases of high-end homes, watches and private jet trips before they are able to sell their shares, CNBC reported.
The expected listing could create thousands of new millionaires and multiple billionaires, according to the report. But the money is not immediately spendable for employees whose shares would be subject to selling restrictions, making the surge in early interest a sign of how markets around SpaceX hubs are positioning for a major wealth event.
Luxury real estate appears to be the first stop. Gerard Bisignano, a partner at Vista Sotheby’s, told CNBC he has recently heard from several long-time SpaceX employees in their mid-30s to early 40s who are looking for homes in California’s South Bay.
“They seem to be in a state of disbelief themselves that they're suddenly going to be able to, in some examples, buy a home for their parents,” Bisignano said. “They're going to have all this discretionary income that they can really do what they want.”
SpaceX’s California office is near affluent coastal communities including Manhattan Beach, Redondo Beach, Hermosa Beach and Palos Verdes Estates. Bisignano told CNBC he expects some employees to pursue high-end homes in the area, along with second homes in California destinations such as Mammoth Lakes, Palm Springs and Tahoe.
In Texas, agent Gary Dolch described similar interest around the greater Austin area, where SpaceX’s Bastrop campus is roughly 30 miles from downtown Austin. Prospective buyers are considering properties ranging from luxury condos near Lake Austin or Lake Travis to large ranches outside the city, he said. Some are weighing purchases after margin loans, while others plan to wait until an IPO lockup period ends.
The expected spending is not limited to property. Paul Altieri, CEO and founder of Bob’s Watches, told CNBC that watches are often an early luxury purchase after a liquidity event, with Rolex models such as the Daytona, GMT-Master II and Submariner drawing interest because they are widely recognizable. Other retailers described demand for pre-owned trophy-brand watches including Patek Philippe and F.P. Journe.
Private aviation companies are also fielding inquiries tied to the SpaceX IPO. D.J. Hanlon of Flexjet and Kolin Jones of Amalfi Jets told CNBC their companies have seen recent interest connected to the potential offering. Jones said some clients are already booking celebratory trips, with Las Vegas, Miami and Cabo San Lucas among popular choices for younger travelers and Aspen, Yellowstone and Disney World drawing family-oriented fliers.
For now, the spending plans remain tied to timing and liquidity. Employees may be preparing for a major change in personal wealth, but their ability to turn shares into cash will depend on the IPO process and any post-listing restrictions.
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