SpaceX went public on June 12, 2026 in the largest initial public offering in history. The company raised $75 billion by selling 555 million shares at $135 each, targeting a market valuation of $1.75 trillion. Its owner, Elon Musk, is simultaneously the third-largest political donor in the 2026 midterm cycle.
$22 Billion in Government Contracts, $85 Million in Political Spending
SpaceX holds $22 billion in cumulative federal contracts across NASA, the Space Force, the National Reconnaissance Office, and the Space Development Agency. In 2025 alone, the company received $3.3 billion in unclassified government revenue. That figure does not include classified programs.
At the same time, Musk has spent $85 million on the 2026 midterms, making him the third-largest donor in the cycle behind Andreessen Horowitz and George Soros. His single largest contribution was $10 million to a Kentucky Senate super PAC in January 2026. He spent $290 million on the 2024 election, said he would stop, paused for two months, and resumed.
$22 billion in government contracts. $85 million in midterm donations. One owner.
The SpaceX PAC has also shifted. In the 2024 cycle, 60% of PAC contributions went to Republicans. NBC News reported on June 11 that the PAC has now shifted “almost exclusively” to Republican candidates ahead of the midterms and the IPO.
Your Retirement Fund May Be Forced to Buy In
Both major index providers changed their rules to fast-track SpaceX into their benchmarks. FTSE Russell now allows large IPOs entry on the fifth day of trading. Nasdaq pushed through a similar change allowing entry after 15 days. These changes mean index funds tracking the Nasdaq-100 and Russell 1000 will be forced to buy an estimated $22 to $27 billion in SpaceX shares automatically.
If you have a 401(k), IRA, or education savings account that tracks a major index, you may soon hold shares in a company that lost $5 billion in 2025 and reported a $4.28 billion loss in Q1 2026. S&P 500 inclusion requires four consecutive quarters of positive earnings. SpaceX does not qualify.
The American Prospect reported that these rule changes were made specifically to accommodate this IPO.
The xAI Merger Created the Largest Company in History
In February 2026, SpaceX absorbed Musk’s AI company xAI in the largest corporate merger in history, valued at $1.25 trillion combined. The stated reason was to build “orbital data centers.” The merger means the company going public is not just a rocket company. It is a rocket company, a satellite internet provider, a defense contractor, and an AI company, all controlled by one person who is also one of the largest political donors in the country.
What You Can Do Now
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Contact your U.S. senators through the Capitol switchboard at (202) 224-3121 and ask them to hold hearings on index rule changes that force retirement funds to buy shares in unprofitable, politically active companies. Name the FTSE Russell and Nasdaq-100 fast-track rules specifically.
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Contact the SEC Office of Investor Education at (800) 732-0330 and ask whether the expedited index inclusion rules for the SpaceX IPO received public comment. Ask what protections exist for retirement savers who did not choose to invest in this company.
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Contact your House representative through the Capitol switchboard at (202) 224-3121 and ask them to co-sponsor legislation requiring disclosure of all political spending by companies that hold more than $1 billion in federal contracts. SpaceX holds $22 billion.
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Check your 401(k) and IRA holdings. If your retirement account tracks the Nasdaq-100 or Russell 1000, it will likely include SpaceX shares within weeks. Contact your plan administrator and ask whether your plan offers index options that exclude companies with net losses or with owners who are top-10 political donors.
Sources
NBC News: SpaceX’s PAC Doubles Down on Republicans Ahead of Historic IPO and Midterms
NPR: SpaceX Blasts Off With a Record-Breaking $75 Billion IPO
Gizmodo: Elon Musk Said He’d Stop Political Spending. He’s the Third-Largest Donor in the Midterms
American Prospect: Elon Musk Is About to Make Saving for Retirement Even Harder
Axios: Musk Shocks With $10 Million Donation in Kentucky Senate Race
CNBC: Musk’s xAI, SpaceX Combo Is the Biggest Merger of All Time, Valued at $1.25 Trillion
Fed-Spend: SpaceX Government Contracts — $22 Billion in Federal Awards
Fortune: SpaceX IPO Could Hit Popular Index Funds and Your 401(k)
OpenSecrets: SpaceX PAC Contributions to Federal Candidates