A financial advisory organization representing union pension funds has called on federal securities regulators to carefully examine SpaceX’s financial disclosures as the space exploration company prepares for what could become the largest stock market debut ever recorded.
The SOC Investment Group sent a letter Wednesday to Securities and Exchange Commission officials, including Chairman Paul Atkins and Commissioners Hester Peirce and Mark Uyeda, expressing concerns about the rocket manufacturer’s upcoming public offering.
SpaceX plans to go public this year with an estimated company worth of $1.75 trillion and expects to raise approximately $75 billion through the stock sale. If successful, this would break all previous records for initial public offerings and could potentially make CEO Elon Musk the world’s first trillionaire.
The investment group’s letter highlighted worries about potential regulatory conflicts stemming from Musk’s recent position within President Donald Trump’s Department of Government Efficiency.
“We are specifically concerned that SpaceX’s IPO will expose numerous investors – many unwillingly – to a company whose value may decline once its financial disclosures can be independently assessed and verified,” the organization stated in their correspondence.
SOC Investment Group represents affiliates with pension plan assets exceeding $250 billion and has previously challenged corporate governance at various companies, including Musk’s electric vehicle manufacturer Tesla. The group currently holds no ownership stake in SpaceX.
Their specific concerns regarding the space company include questions about auditor independence, financial dealings between Musk’s various business enterprises, revenue recognition practices, and goodwill impairment issues.
The organization also questioned whether former Department of Government Efficiency personnel continue to have contact with SEC staff or if any ex-DOGE employees now work at the securities agency. They requested information about safeguards ensuring staff can review SpaceX’s documents independently and “without fear of political retribution.”
The group urged the SEC to “ensure that review of SpaceX’s registration statement does not involve members of staff with ties to SpaceX control persons.”
An SEC representative declined to provide comments about any specific company. SpaceX and Musk have not yet responded to requests for comment regarding the letter.
The SOC Investment Group indicated they are awaiting the public release of SpaceX’s registration statement, which remains confidential at this time, though Reuters has reviewed portions of the document.
