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California and New York pension chiefs warn SpaceX IPO rules could leave investors powerless
Business
Published on 14 May 2026
They fear Musk cannot be removed by anyone else
Three of America’s largest public pension systems have urged Elon Musk to change SpaceX’s planned governance before its IPO. New York State Comptroller Thomas DiNapoli, New York City Comptroller Mark Levine and California PERS CEO Marcie Frost say the proposed structure gives Musk outsized control, including voting dominance and veto power over his removal, plus litigation protections such as mandatory arbitration. They also warn Musk’s cross-company leadership could create conflicts. The IPO is projected to be the biggest ever, targeting $75 billion raised at a $1.75 trillion valuation.
- DiNapoli, Levine and Marcie Frost sent concerns to Musk before the IPO
- Officials cite Musk voting control and veto power over his own CEO removal
- They warn shareholders would lack an independent board majority and derivative remedies
- SpaceX plans mandatory arbitration for shareholder claims, limiting class-action options
- The pension leaders highlight Musk’s empire across Tesla, X, xAI and more as a conflict risk
- SpaceX is expected to seek Nasdaq 100 inclusion, via passive index allocations
Read the full story at The Economic Times
This summarization was done by Beige for a story published on 
The Economic Times