Elizabeth Warren Wants SpaceX IPO Delayed, Points To 'Inaccurate Or Misleading Accounting Of Valuation' In Letter To SEC
Sen. Elizabeth Warren (D-Mass.) urged the Securities and Exchange Commission to delay SpaceX's planned initial public offering, warning that the record-setting listing could expose investors to unusual valuation, governance and index-fund risks.
Warren Presses SEC To Slow IPO
Warren wrote to SEC Chair Paul Atkins in a letter her office released Wednesday, saying, "Given the unprecedented threats to investor protection and market integrity posed by the biggest IPO in history, you must delay any eventual acceleration of the registration statement's effectiveness accordingly." The letter urged the SEC to slow the offering, now expected to begin trading on Friday.
In the 12-page letter, Warren raised concerns about "inaccurate or misleading accounting or valuation" tied to SpaceX's acquisition of Elon Musk-owned xAI, conflicts involving Musk's "uniquely unchecked" control and the possibility that index providers could fast-track SpaceX into major benchmarks.
"For investors who pick and choose their specific investments, they at least are able to avoid investing in companies that engage in risky or unfair practices," Warren wrote. "But the SpaceX IPO creates a new concern: that major stock market indexes are being rigged in a way that would force millions of investors in passive index funds … to invest in SpaceX and face exposure to SpaceX's significant risks with no choice in the matter."
Benzinga reached out to the SEC and SpaceX for comment, but did not receive an immediate response.
Valuation And Musk Control Draw Scrutiny
SpaceX is targeting a valuation of about $1.75 trillion while raising roughly $75 billion, which would make it the largest IPO in history, Reuters reported. The company plans to trade under the ticker "SPCX."
Warren said analysts had called the valuation math "nonsensical," "smoke-and-mirrors accounting" and "truly out of this world." SpaceX reported $18.67 billion in annual revenue and a $4.94 billion net loss in 2025, implying a price-to-revenue multiple of about 93.7 times.
Warren also cited governance provisions that she said entrench Musk's control, including supervoting shares, mandatory arbitration, stricter shareholder proposal rules and Texas corporate law. According to the letter, Musk would control about 82.4% of voting power after the IPO and 93.6% of the Class B shares needed to remove him as chairman or CEO.
Investor Demand Remains Strong Despite Risks
Public pension officials from New York and California have also warned that SpaceX's reported structure would be unusually management-friendly, citing supervoting shares, mandatory arbitration and limits on shareholder lawsuits.
Still, demand appears strong. Retail investors are expected to receive up to 30% of the offering, far above typical IPO allocations, though SpaceX's debt, losses and Musk's voting control remain key risks.
Bullish investors argue SpaceX's Starlink, launch dominance and AI ambitions justify a premium. Deepwater Asset Management‘s Gene Munster has called the IPO a major tech moment, while Ron Baron has predicted SpaceX could eventually reach $30 trillion, drawing praise from Musk.
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