Sen.
Elizabeth Warren sent a letter to Securities and Exchange Commission Chair Paul Atkins on Tuesday calling for the agency to halt SpaceX’s initial public offering, which is scheduled to begin trading on the Nasdaq on Friday. “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,” Warren wrote in the 12-page letter
Warren, a Massachusetts Democrat and ranking member of the Senate Banking, Housing, and Urban Affairs Committee, raised three principal concerns: that SpaceX’s target valuation is unsupported by its financials, that its corporate governance structure concentrates power in CEO Elon Musk with minimal shareholder recourse, and that major stock index providers have altered their rules in ways that would compel passive investors to buy SpaceX stock with no say in the matter. On valuation, Warren quoted analysts who have described the company’s math as “nonsensical,” “smoke-and-mirrors accounting,” and “truly out of this world.” SpaceX is targeting a valuation of roughly $1.75 trillion while posting $18.67 billion in annual revenue — a price-to-revenue multiple of approximately 93.7 times — and reported a net loss of $4.94 billion in 2025. On governance, Warren wrote that SpaceX combines supervoting shares, mandatory arbitration, stricter rules on shareholder proposals, and Texas corporate law to entrench Musk’s control.
Under the dual-class share structure, Musk controls approximately 82.4% of voting power after the offering, and can only be removed as chairman or CEO by a majority vote of Class B shareholders — a class he personally controls 93.6% of, according to the letter. Warren also flagged that shareholders seeking to bring derivative lawsuits would need to hold at least 3% of company stock, which at the target valuation would require a stake of at least $52.5 billion. On index inclusion,…