The American Federation of Teachers (AFT) has sent a letter to the U.S. Securities and Exchange Commission (SEC) this Wednesday, urging the agency to intensify its review of SpaceX's preparations for an initial public offering (IPO). AFT President Randi Weingarten authored the letter, expressing deep concerns over whether the significant fundraising effort will adhere to securities laws mandating full disclosure of material information and fair treatment of investors. This is particularly critical as SpaceX stock could potentially be included in retirement accounts belonging to the union's 1.8 million members from the education, healthcare, and public sectors.

Weingarten and the AFT are calling on SEC Chairman Paul Atkins to direct his staff to prioritize the examination of SpaceX's IPO application during their current routine checks. Weingarten raised concerns that the company's business plan might rely on "illusory or speculative technologies," and also questioned the adequacy of its financial accounting and the competence of its board of directors. Under newly enacted exchange rules, relevant pension funds could hold SpaceX stock within days, rather than months, following the IPO. However, skepticism remains regarding SpaceX's ability to generate profits substantial enough to justify its high valuation, indicating a potential risk of a sharp decline in share value that could harm retirees' interests.

In her statement, Weingarten emphasized, "The Commission must demand rigorous disclosure from the company, implement independent oversight, and establish safeguards against forced investments. Otherwise, workers' lifelong savings risk being subject to the control of an entity that resembles more of a 'family business' for Elon Musk than a transparent public corporation."