FOR IMMEDIATE RELEASE: June 12, 2026
CONTACT: Natalia Renta, natalia@ourfinancialsecurity.org
Available for in-person interviews in front of JPMorgan Chase headquarters
A New Way to Transfer Wealth from Working People to Billionaires Hits the Market with SpaceX IPO
New York, NY — SpaceX went public today at $135 a share and $1.77 trillion valuation — an almost 100 price to sales ratio — with a governance structure that consolidates power with Elon Musk and attempts to dramatically restrict shareholder lawsuits. SpaceX is poised to start appearing in 401(k)s and pensions in as little as five trading days.
“A new way to transfer wealth from working people to billionaires is hitting the market today with the SpaceX IPO,” said Natalia Renta, associate director of corporate governance and power at Americans for Financial Reform Education Fund. “With SpaceX poised to appear in retirement portfolios in just a few days at a sky-high price, the scene is set for wealthy early investors to cash out while leaving retirement savers holding the bag.”
SpaceX is taking advantage of recent changes to Texas corporate law that allow companies incorporated in the state to set ownership thresholds for lawsuits against corporate insiders and shareholder proposals. It is also availing itself of a change in policy at the Securities and Exchange Commission (SEC) that allows companies to go public with forced arbitration provisions. Additionally, if current SEC proposals are finalized, SpaceX and other recently-public companies will be able to hide information about their risks, executive pay, related party transactions, and much more.
“SpaceX is taking advantage of legal and policy changes across the state and federal levels that shift power from regular shareholders like workers saving for retirement to corporate insiders like Musk,” said Renta. “The Trump administration’s SEC and Texas lawmakers have bent over backwards to rig the rules in ways that benefit Musk and other wealthy corporate insiders at the expense of everyone else.”
A preliminary legal analysis by Gupta Wessler LLP concluded that managers of index funds that include SpaceX without undertaking an independent analysis of whether it is consistent with the fund’s investment objectives may face liability claims for breach of fiduciary duty. Those who manage retirement savings governed by the Employee Retirement Income Security Act (ERISA) or its state-level equivalents may face similar liability concerns.
“Those entrusted with workers’ deferred wages must take decisive action to protect their investments from risks associated with the SpaceX IPO,” said Renta. “Otherwise, if retirement savers end up saddled with losses in the event that the share price drops to more closely reflect the company’s fundamentals, they will face strong calls for accountability.”
SpaceX is the first of three megaIPOs expected in the coming months. Anthropic and OpenAI recently confidentially filed their IPO paperwork with the SEC.
“If Anthropic and OpenAI are allowed to go public with similarly draconian provisions locking in founder control and restricting lawsuits, just a few insiders will have a say in what AI tech is, how it is deployed, and how any gains and losses are distributed,” said Renta.
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