Designers call for strict investigation of SpaceX IPO, claiming valuation "violates financial logic"

BlockBeats News, May 7 — One of the largest public unions in the United States, the American Federation of Teachers, has urged regulators to conduct a strict review of SpaceX’s IPO, saying its valuation “violates financial logic.” The union sent a letter to the U.S. Securities and Exchange Commission (SEC), raising concerns about SpaceX leadership’s practices and accounting methods.

SpaceX is seeking to raise $75 billion at an estimated valuation of about $2 trillion; if successful, it would become the largest IPO in history. However, experts say its revenue is far from matching its valuation, relying more on Elon Musk’s future vision. The union president criticized it as “a valuation that violates financial logic, hurried into the market.” The union is concerned that if SpaceX goes public, its members’ retirement funds will be passively exposed to its business risks.

Many of SpaceX’s goals require investment over several years and may even be unachievable. The union also asks the SEC to review the “forced investment” problems caused by changes to index provider rules. (Jin10)