The Artists Union is calling for a thorough investigation of the SpaceX IPO, stating that the valuation "defies financial logic."

May 7 (Golden Finance) — The American Federation of Teachers (AFT), one of the largest public employee unions in the U.S., is calling for regulatory scrutiny of SpaceX’s initial public offering (IPO), arguing the company’s valuation “defies financial logic.” The union has sent a letter to the U.S. Securities and Exchange Commission (SEC) raising concerns over SpaceX’s leadership practices and accounting methods. SpaceX aims to raise $75 billion in its IPO at an approximate $2 trillion valuation— a figure that would make it the largest IPO on record. Yet experts note a stark mismatch between the company’s revenue and its valuation, with the valuation relying heavily on Elon Musk’s future vision. The AFT’s president has criticized the move as a rush to go public with a valuation that defies financial logic. The union is also concerned that if SpaceX goes public, its members’ retirement funds could be passively exposed to the company’s operating risks. Many of SpaceX’s long-term goals require years of investment, and some may never be achievable. The union further calls on the SEC to review the “mandatory investment” issue stemming from recent index provider rule changes.