SpaceX · Elon Musk · Elizabeth Warren · SEC · CNBC Technology
Warren calls on SEC to delay SpaceX IPO, flagging concerns about valuation and governance
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Elizabeth Warren, D-Mass., called for the Securities and Exchange Commission to delay SpaceX 's upcoming initial public offering, citing concerns about the rocket maker's valuation and corporate governance in a letter shared with CNBC.
Key facts
- SpaceX made the unusual move to set a take-it-or-leave-it price of $135 a share, instead of providing a price range that moves depending on demand, as is customary in IPOs
- CNBC has reached out to SpaceX and SEC Chairman Paul Atkins for comment
- 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
Summary
"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 to the market regulator on Tuesday. In the 12-page letter, Warren flagged the potential for "inaccurate or misleading accounting or valuation" around SpaceX's acquisition of Elon Musk-owned xAI, conflicts of interest surrounding Musk's "uniquely unchecked" power as its majority shareholder, and that fast-tracking the company into major stock market indexes would carry "significant risks" for both active and passive investors. Warren's letter comes as SpaceX is set to make its market debut on Friday, with the company aiming to raise a record sum at a historic valuation.