Sen. Elizabeth Warren (D-Mass.) is not a fan of SpaceX's upcoming IPO, and she's making sure the SEC knows it. In a 12-page letter to SEC Chair Paul Atkins, Warren urged the agency to delay the offering — now expected to begin trading on Friday — warning that the record-setting listing could expose investors to some unusual risks.
"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 letter, which her office released Wednesday.
The senator's concerns center on three main issues: the valuation of SpaceX, the governance structure that gives Elon Musk outsized control, and the possibility that index providers might fast-track SpaceX into major benchmarks, forcing passive investors to hold the stock whether they like it or not.
"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."
MarketDash 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. 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. That's a lot of faith for a company that's losing money.
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. In other words, good luck trying to vote him out.
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.
Whether the SEC listens to Warren or lets the rocket ship launch on Friday remains to be seen. But one thing is clear: this IPO is going to be anything but ordinary.
