New York and California Pension Leaders Oppose SpaceX Control Structure

Leaders of the New York and California public pension funds have opposed the control structure used by SpaceX. The officials sent a letter criticizing the arrangement as they consider participating in a planned tender offer for shares of the privately held company.

The letter argues that the governance setup gives excessive power to a single individual. It raises questions about long-term sustainability and potential risks to minority shareholders in the rocket and satellite business. SpaceX has not commented publicly on the concerns raised by the pension officials.

The company maintains its current ownership and voting structure as it continues to expand operations that include Starlink satellite internet and NASA contracts.

Background on the Governance Dispute The pension funds manage retirement assets for millions of public employees in the two largest U.S. states. Their decision on whether to buy additional SpaceX shares could influence other institutional investors evaluating the tender offer.

The officials noted that similar concerns have been expressed in past dealings with companies that feature concentrated control. They indicated the funds are weighing the potential financial returns against governance risks. Reuters reported that the letter was sent this week ahead of the tender offer deadline.

No immediate response from SpaceX was available as of Thursday.

Their stance could prompt other investors to reassess involvement in the share sale. SpaceX has raised billions of dollars in recent years from a range of investors to support its development of reusable rockets and global internet coverage. The company remains privately held and does not disclose full financial details.