SpaceX, Elon Musk’s private space and satellite firm, is facing pushback from leaders of three large U.S. public pension funds ahead of its planned IPO, according to Reuters.
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In a letter reviewed by Reuters, New York and California pension leaders raised concern over what they called the company’s “extreme” governance setup. Their main concern is that Musk may keep strong voting control through super voting shares, veto rights, and limits on the power of other stockholders.
The pension leaders asked SpaceX to move toward a one-share, one-vote model. They also urged the firm to phase out super voting shares within about seven years and add more board freedom and shareholder rights.
Why It Matters for Investors
The pushback could affect SpaceX’s IPO valuation. Large pension funds are often key long-term buyers in major IPOs. As a result, weak stockholder rights can lead some large funds to cut their order size, seek a lower price, or avoid the deal.
At the same time, SpaceX may still draw strong demand given its unique market role. The firm leads in rocket launch, owns the Starlink web service, and has deep ties to U.S. space and defense work. That gives SpaceX a strong growth story, even if its voting setup draws concern.
Still, governance can affect how much large funds are ready to pay. Musk’s track record with Tesla (TSLA) gives him a clear founder’s premium. Yet some investors may also weigh past concerns about board freedom and control, and the risk that key choices may not always align with the goals of public stockholders.
The most likely result is a deal that keeps Musk in control while giving some ground to large funds. That could mean a sunset plan for super voting shares, a stronger board setup, or clearer rights for small stockholders.
For now, SpaceX may have one of the strongest IPO stories in the market, but its governance terms could still shape demand, price, and the stock’s first move once it goes public.
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