Sen. Warren Calls on SEC to Delay SpaceX IPO, Cites Valuation and Governance Risks

According to CNBC, on Tuesday, Sen. Elizabeth Warren called on the Securities and Exchange Commission to delay SpaceX's initial public offering, citing concerns about valuation accuracy, corporate governance tied to Elon Musk's majority stake, and risks to passive index fund investors.

In a 12-page letter shared with CNBC, Warren flagged potential for "inaccurate or misleading accounting or valuation" related to SpaceX's acquisition of Musk's xAI, as well as conflicts of interest surrounding Musk's "uniquely unchecked" power. She expressed particular concern that fast-tracking SpaceX into major stock indexes would "force millions of investors in passive index funds" into exposure to the company's risks "with no choice in the matter." SpaceX is set to debut Friday at a fixed price of $135 per share, with the company targeting a 30% retail allocation worth approximately $22.5 billion.