US senator Elizabeth Warren asks regulator to delay SpaceX IPO, flags concerns over high valuation - CNBC TV18

Sen. Elizabeth Warren urges the SEC to delay SpaceX IPO, citing valuation, governance, conflicts over Elon Musk and xAI, and risks to investors from a 135 dollar fixed share price

Amid the loud fanfare surrounding the initial public offering (IPO) of Elon Musk's SpaceX, concerns have persisted surrounding the valuation of the space and AI tech company.

In a letter shared with CNBC, Sen. Elizabeth Warren, D-Mass., urged the Securities and Exchange Commission to postpone SpaceX's impending IPO, citing issues with the rocket manufacturer's valuation and corporate governance.

CNBC quoted Warren's letter, in which she appealed to the market regulator, and said, "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."

The 12-page letter to the SEC underscored the potential for inaccurate or misleading accounting or valuation.

Warren also raised concerns over conflicts of interest about Elon Musk's "uniquely unchecked" influence as the business's majority shareholder, SpaceX's acquisition of Elon Musk's xAI, and the "significant risks" that both active and passive investors would face if the company were to move quickly into major stock market indices.

The letter from the US senator from Massachusetts, who is also a ranking member of the banking committee, comes ahead of SpaceX's Wall Street debut on Friday.

The SpaceX IPO has been in the news for its pricing as well, as, instead of offering a price range that fluctuates based on demand, as is typical in initial public offerings (IPOs), SpaceX took the unique decision to set a take-it-or-leave-it price of $135 per share.

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