Senator Elizabeth Warren is trying to pump the brakes on SpaceX’s IPO, and the company is responding by flooring the accelerator anyway.
Warren sent a letter on June 9 to SEC Chair Paul Atkins urging a delay of SpaceX’s public listing, citing what she called “unprecedented threats to investor protection and market integrity.” The IPO, trading under the ticker SPCX, is set to price between $130 and $135 per share and begin trading on June 12. The offering aims to raise approximately $75 billion, which would make it the largest IPO in history by a wide margin.
Indications of interest have reportedly surpassed $250 billion, more than three times the amount the company is actually looking to raise. Retail investors have been allocated around 30% of shares, a notably generous slice for an offering of this magnitude.
Warren’s concerns and the valuation question
The core of Warren’s objection centers on SpaceX’s proposed valuation, which sits somewhere between $1.75 trillion and $2 trillion. Warren’s letter points out that this valuation works out to approximately 100 times SpaceX’s projected 2025 revenue. The company also reportedly posted net losses between $4.28 billion and $4.9 billion.
