US Pension Leaders Challenge SpaceX's $75 Billion IPO Governance as Musk's Control Draws Fire
Updated
Updated · Reuters · May 14
US Pension Leaders Challenge SpaceX's $75 Billion IPO Governance as Musk's Control Draws Fire
2 articles · Updated · Reuters · May 14
$1 trillion in public pension assets lined up against SpaceX's planned IPO, with New York, New York City and CalPERS leaders warning Elon Musk's control terms would sharply weaken shareholder rights.
The letter says Musk would keep voting control, effectively block his own removal, avoid a majority-independent board under controlled-company status, and force shareholder claims into mandatory arbitration.
Pension officials also tied their objections to Musk's multiple leadership roles, prior SEC and shareholder cases, and related-party deals including SpaceX's xAI acquisition and Tesla's reported $2 billion investment.
SpaceX is seeking what could be the biggest IPO ever—raising $75 billion at a $1.75 trillion valuation—and index inclusion could make the stock an unavoidable holding for passive institutional investors.
The group urged one-share-one-vote or a seven-year sunset on super-voting shares, an independent board, separate CEO and chair roles, and independent review of transactions involving Musk's other companies.
Can Elon Musk's 'loyalty test' IPO succeed despite warnings from investors controlling over $1 trillion in assets?
Will Texas's new laws create a corporate monarchy at SpaceX, and will other tech giants follow suit?
SpaceX’s $1.75 Trillion IPO: Unprecedented Founder Control, Forced Investment Risks, and the Future of Corporate Governance
Overview
SpaceX is preparing for a major IPO, but the move has sparked strong opposition and scrutiny. The SOC Investment Group has called on the SEC to rigorously review the offering, raising concerns about the integrity of the regulatory process and possible conflicts of interest. They specifically point to Elon Musk’s past involvement with the Department of Government Efficiency (DOGE) and worry that current or former DOGE staff could still influence the SEC. These concerns highlight broader fears about transparency and fairness as SpaceX moves closer to going public.