Elon Musk’s Control Over SpaceX Raises Concerns Among Pension Managers

Leaders of three major U.S. public pension systems have raised concerns over the governance structure planned by SpaceX for its upcoming stock market listing.

In a letter to Chief Executive Officer (CEO) Elon Musk and other company executives, the officials objected to provisions that would give Musk voting control, influence over his removal as CEO, and protections from shareholder litigation. The concerns were raised by representatives of pension systems in New York and California, which together oversee more than USD 1 trillion in retirement assets. The officials said the proposed structure could limit board independence and reduce shareholder rights.

According to reports, SpaceX is preparing an initial public offering that could value the company at USD 1.75 trillion and raise USD 75 billion. The pension leaders also questioned related-party transactions involving Musk’s other companies, including Tesla and xAI.

The group has requested discussions with SpaceX management regarding the governance proposals.