Loeffler reaps millions from SpaceX IPO after nomination

Kelly Loeffler, the U.S. Small Business Administration head, multiplied her SpaceX stake into millions after her nomination, a Reuters review of financial disclosures shows, raising ethics questions about officials profiting from companies they oversee.

The financial disclosure documents, reviewed by Reuters, show Loeffler held SpaceX shares before her nomination and that the value of her stake increased substantially after, multiplying by several times by the time of the company's record IPO in June. The exact dollar amount was not specified in the filings, but the gain was described as "millions."

SpaceX raised about $86 billion in its June 12 debut, pricing shares at $135. The stock initially surged to above $200, briefly valuing the company at more than $2 trillion, before falling back. Shares closed Wednesday at $135.27, near the IPO price, after dipping below $133 intraday. The stock has fallen 41% from its peak of $225.64.

The gain for Loeffler, who as SBA head oversees programs supporting small businesses that may compete with or supply SpaceX, could fuel calls for stricter ethics rules governing financial holdings by presidential appointees. The SBA administers loan programs and contracting rules that could affect companies across the space and defense sectors.

Stake Multiplied After Nomination, Filings Show

The financial filings, which cover Loeffler's assets and income, show her SpaceX investment was held prior to her nomination and grew significantly in value after, according to Reuters. Loeffler, a former U.S. senator from Georgia, was nominated by President Donald Trump to lead the SBA in 2025. Her office did not immediately respond to a request for comment.

Federal ethics rules require presidential appointees to disclose their assets and recuse themselves from matters that could affect their financial holdings. The Office of Government Ethics reviews these disclosures, but enforcement relies largely on self-reporting by appointees.

IPO Raised $86 Billion, Stock Later Fell 41%

SpaceX's IPO was the largest in U.S. history, raising about $86 billion. The stock debuted on the Nasdaq on June 12 at $135 per share and quickly rallied, reaching a high of $225.64 within days. At its peak, the company's market capitalization exceeded $2 trillion, rivaling tech giants such as Amazon and Microsoft.

Since then, the stock has given back most of those gains. Shares have fallen for several consecutive weeks, closing Wednesday at $135.27 after briefly dipping below the IPO price to $132.75, according to data compiled by Reuters. The decline reflects a broader reassessment of high-growth tech valuations and concerns about the company's path to profitability.

Only about 4% of SpaceX's total shares are publicly traded, a small float that has contributed to the stock's volatility, analysts said. The company's first earnings report as a public company will be a key test for the stock, with investors watching for signs of profitability and revenue growth from its Starlink satellite business and launch services.

Rules Require Recusal but Rely on Self-Reporting

The case highlights potential conflicts of interest when government appointees hold investments in companies that may be affected by their agencies' policies. The SBA administers loan programs and contracting rules that could impact SpaceX's business operations, including small business set-aside programs that determine which companies can compete for federal contracts.

The Loeffler disclosures come as other high-profile IPOs, including OpenAI and Anthropic, are being prepared, raising broader questions about political insiders profiting from the private-market boom. SpaceX's record debut has set the table for these offerings, and the stock's subsequent decline has made it a bellwether for investor appetite for high-growth, high-profile listings.

This article is for informational purposes only and does not constitute investment advice.