SpaceX IPO Under Scrutiny
Senator Warren Presses SEC to Halt SpaceX IPO, Citing Unprecedented Investor Risks and Governance Issues
Key Points
Warren told the SEC Chair Paul Atkins that SpaceX’s governance setup—where Elon Musk is “CEO, CTO, and chair of the board” while holding the majority of voting shares—makes him “virtually unimpeachable,” limiting meaningful oversight for outside investors.
Warren warned the IPO could harm “ordinary investors and their retirement savings,” adding that it also provides “enormous advantages for SpaceX insiders,” including “senior Trump Administration officials.” A Bloomberg-cited disclosure in Gizmodo said several such officials held SpaceX or xAI stock worth up to $43.8 million.
Benzinga reported SpaceX’s financials and expected listing details: the company targeted a valuation of about $1.75 trillion while raising roughly $75 billion, and it planned to trade under the ticker “SPCX.” Warren also cited SpaceX’s reported $18.67 billion in annual revenue and $4.94 billion net loss in 2025, implying a price-to-revenue multiple of about 93.7.
One reason analysts were said to value SpaceX at “less than half” its target was skepticism about a key profit assumption: that Musk’s “moonshot” idea of building a colony of space-based data centers will work and become hugely profitable. Gizmodo also cited SpaceX’s IPO filing warning that it has “a history of net losses and may not achieve profitability in the future.”
Senator Elizabeth Warren sent a 12-page letter to SEC Chair Paul Atkins on June 10, urging him to delay SpaceX's planned IPO. She called the offering an "unprecedented threat" to investor protection. Trading under the ticker "SPCX" is scheduled to begin on Nasdaq on June 12, with final pricing expected the night before. Benzinga reported SpaceX is targeting a valuation of $1.75 trillion — the largest in history — while raising roughly $75 billion at $135 per share.
The stakes are enormous. If the SEC does not act, SpaceX will instantly become the sixth-largest company in America. Warren argues the deal is built on "smoke-and-mirrors accounting" and could harm the retirement savings of ordinary Americans. The SEC's response is expected at any moment.
Musk Controls 85% of Votes, Warren Says That's the Problem
Warren's core concern is Elon Musk's grip on SpaceX. Musk holds about 42% of the company's equity but controls roughly 85% of shareholder voting power, according to Forbes. He also serves as CEO, CTO, and chair of the board all at once. Warren wrote that this makes him "virtually unimpeachable" — meaning outside investors would have almost no way to hold him accountable.
Ann Lipton, a law professor at the University of Colorado, told the Wall Street Journal that SpaceX is "closing off every possible avenue for shareholders to have any influence at all." Warren also flagged that senior Trump administration officials hold up to $43.8 million in SpaceX or xAI stock, according to a disclosure cited by Gizmodo. She warned the deal offers "enormous advantages for SpaceX insiders" at ordinary investors' expense.
SpaceX's $250 Billion xAI Merger Raises Accounting Red Flags
In February 2026, SpaceX acquired Musk's AI company xAI in a $250 billion all-stock deal. Because Musk controlled both companies, the merger was treated as a transaction between "entities under common control" under US accounting rules. That meant the massive $250 billion price tag did not have to be fully recorded on the balance sheet. Warren called this "inaccurate or misleading accounting of valuation."
The xAI business lost $6.36 billion at the operating level in 2025 on just $3.2 billion in revenue, according to Barchart. Yet its addition helped inflate SpaceX's overall valuation. SpaceX's own IPO filing warns it has "a history of net losses and may not achieve profitability in the future," Gizmodo noted. The company reported $18.67 billion in total revenue in 2025 against a $4.94 billion net loss — implying a price-to-revenue multiple of about 93.7 times.
Morningstar Values SpaceX at Less Than Half the IPO Target
Analysts at Morningstar put SpaceX's fair value at roughly $780 billion — less than half of the $1.75 trillion target, according to Benzinga. The gap comes down to one big bet: Musk's plan to build a network of space-based AI data centers. Analysts say that "moonshot" idea is far too speculative to justify the current price. The IPO also uses an unusual fixed "take-it-or-leave-it" price of $135 per share, rather than a demand-based range.
Despite the skepticism, investor demand reportedly hit $250 billion — nearly four times the $75 billion being raised — according to Whalesbook. Starlink, SpaceX's satellite internet arm, is the financial engine driving that enthusiasm. It generated $11.39 billion in revenue and $4.42 billion in operating profit in 2025. But Warren warns that if index providers fast-track SPCX into major indices, passive investors in retirement funds could be forced to own the stock whether they want to or not.
SEC Chair Atkins Faces a Test of His Deregulatory Agenda
Paul Atkins, appointed as SEC Chair in 2025, has pushed a "Make IPOs Great Again" policy. His team rewrote listing rules to make it easier for mega-cap companies to go public quickly, including a "Fast Entry" rule that lets Nasdaq add new stocks to its indices within 15 days, according to Mitrade. Warren argues those rule changes were tailor-made for this deal and leave passive investors exposed with no real choice.
If Atkins declines to act, it could spark a legislative fight. Warren chairs the Senate Banking Committee's minority and could push for tighter disclosure rules on so-called "controlled companies" — firms where one person dominates the vote. The broader stakes are also huge for markets: a successful SPCX debut could trigger a wave of mega-IPOs from OpenAI and Anthropic, potentially adding $4 trillion to public markets, according to research cited by Barchart.
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