SpaceX is facing new scrutiny ahead of a potential IPO that could value the aerospace giant at more than $2 trillion. Indeed, SOC Investment Group, which advises union-affiliated pension funds, is asking the U.S. Securities and Exchange Commission (SEC) to closely review SpaceX’s financial disclosures before the company goes public. In a May 6 letter, the group said regulators should make sure that the disclosures are accurate, that the company’s auditor is independent, and that the accounting for transactions with Elon Musk’s other companies is properly reviewed.
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The main concern is that SpaceX has deep ties to other Musk-led businesses, including xAI and Tesla (TSLA). SOC warned that many investors could end up exposed to SpaceX through funds or indexes, even if they did not directly choose to buy the stock. The group argued that SpaceX’s value could fall once its financials become easier to independently verify.
The request also follows a similar call from the American Federation of Teachers, which urged the SEC to examine SpaceX’s valuation, accounting practices, and governance, especially since Musk’s close allies are on the board. The company’s structure is drawing attention because Musk’s businesses are closely connected. In fact, SpaceX merged with xAI earlier this year after xAI bought X. In addition, Tesla has sold Cybertrucks to SpaceX and xAI, along with Megapack batteries to the AI startup.
What Is the Prediction for TSLA Stock?
When it comes to Elon Musk’s companies, most of them are privately held. However, retail investors can invest in his most popular company, Tesla. Turning to Wall Street, analysts have a Moderate Buy consensus rating on TSLA stock based on 13 Buys, 12 Holds, and five Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average TSLA price target of $410.21 per share implies 3.3% upside potential.
