By Isla Binnie
NEW YORK, May 6 (Reuters) – An investor group which advises union pension funds urged Wall Street’s leading watchdog on Wednesday to scrutinize SpaceX’s disclosures as the rocket maker embarks on a planned record-breaking public listing.
It also raised founder Elon Musk’s tenure in the Trump administration as a potential conflict for regulators reviewing the company’s disclosures.
SpaceX is expected to launch an initial public offering (IPO) this year at a possible valuation of $1.75 trillion, raising about $75 billion. That would be the biggest listing on record and could help CEO Musk become history’s first trillionaire.
SOC Investment Group wrote to Securities and Exchange Commission (SEC) chairman Paul Atkins and commissioners Hester Peirce and Mark Uyeda “to raise concerns over the accuracy and reliability of financials” that SpaceX will file.
The group said it was waiting for the publication of SpaceX’s registration statement, a document which is currently confidential, excerpts of which were reviewed by Reuters.
“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 wrote.
An SEC spokesperson declined to comment on a specific company. SpaceX and Musk did not immediately respond to requests for comment.
SOC says members of its affiliates participate in pension plans with more than $250 billion in assets. It has previously called on shareholders to vote against directors at companies including Musk’s automaker Tesla.
For SpaceX, in which it holds no shares, SOC’s concerns include auditor independence, transactions between other companies Musk controls, and issues including goodwill impairment and how SpaceX recognizes revenue.
Recalling Musk’s time at U.S. President Donald Trump’s Department of Government Efficiency, SOC said it was unclear whether DOGE staff continue to interact with SEC staff or if former DOGE employees worked at the agency.
The group asked what measures had been taken to make sure staff could review SpaceX’s disclosures independently and “without fear of political retribution” and urged the SEC to “ensure that review of SpaceX’s registration statement does not involve members of staff with ties to SpaceX control persons”.
(Reporting by Isla Binnie; Editing by Muralikumar Anantharaman)
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