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A union-linked investor group has urged the US Securities and Exchange Commission to closely review SpaceX’s planned initial public offering as the rocket company prepares for a possible record listing. The request focuses on SpaceX IPO disclosures, accounting practices, related-party transactions, and possible conflicts tied to Elon Musk’s role in government.
SOC Investment Group wrote to SEC Chairman Paul Atkins and commissioners Hester Peirce and Mark Uyeda, asking the agency to examine SpaceX’s registration statement with care. The group said it had concerns over the accuracy and reliability of the financial information that SpaceX will file.
The registration statement remains confidential, though Reuters reported that it reviewed excerpts. SOC said it was waiting for the public filing before making a full assessment. However, it warned that many investors could gain exposure to SpaceX through pension funds and index-linked products.
SOC said, “We are specifically concerned that SpaceX's IPO will expose numerous investors – many unwillingly – to a company whose value may decline once its financial disclosures can be independently assessed and verified.” The group does not hold SpaceX shares, but it advises union pension funds.
The investor group said members of its affiliates take part in pension plans with more than $250 billion in assets. It has also questioned governance at companies linked to Musk before, including Tesla.
SpaceX could seek a valuation between $1.75 trillion and $2 trillion in the offering. Reports said the company may raise about $75 billion, which would make the IPO the largest public listing on record.
The American Federation of Teachers also asked the SEC to review the filing. AFT President Randi Weingarten said the proposed valuation raised concerns because SpaceX’s reported revenue profile does not match the scale of the target valuation.
Weingarten said, “This is not just another IPO — it’s the largest in US history, and it’s being rushed to market with a valuation that defies financial logic.” The union said its members could face indirect exposure through retirement funds if SpaceX enters major indexes soon after listing.
SpaceX did not respond to requests for comment. The SEC also declined to comment on a specific company.
SOC asked the SEC to review SpaceX’s auditor independence, revenue recognition methods, goodwill impairment treatment, and transactions between companies controlled by Musk. These areas could affect how investors value the company after its financial records become public.
The group also asked the SEC to check whether staff reviewing the IPO have ties to SpaceX control persons. It raised Elon Musk’s earlier role at President Donald Trump’s Department of Government Efficiency as a possible conflict area for regulators.
SOC said it was unclear whether DOGE staff still interact with SEC employees or whether former DOGE staff had worked at the agency. The group asked the SEC to make sure staff can review SpaceX’s disclosures independently and ‘without fear of political retribution.’
The AFT also raised concerns about leadership practices and accounting methods. It said the SEC should demand clear disclosures and independent oversight before SpaceX shares reach public investors.
The AFT also asked the SEC to review what it called forced investment linked to proposed index rule changes. NASDAQ approved a rule this year allowing large new public companies to enter the NASDAQ-100 after 15 days instead of waiting months.
S&P Dow Jones Indices and a London Stock Exchange Group unit are also reviewing similar rule changes. Reuters earlier reported that SpaceX made early NASDAQ-100 inclusion a condition for considering a NASDAQ listing.
Index entry can increase demand because many funds track major benchmarks. The AFT said these changes could push retirement funds into SpaceX shares faster than usual. The union said its members take part in retirement and benefit funds with about $3 trillion in assets.
Weingarten said, “The commission must demand ironclad disclosures, independent oversight and safeguards against forced investment.” The SEC has not announced any action linked to the letters.
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