SpaceX has warned investors about the risk to the company from its own CEO.
In documents attached to a tender offer to investors, SpaceX said there were “risk factors” associated with CEO Elon Musk’s potential return to politics, according to Bloomberg.
Musk this month filed to form a new political party—the America Party—teasing a return to frontline politics. The SpaceX and Tesla CEO had been a close ally of Donald Trump, serving in his Department of Government Efficiency, but left DOGE at the end of May when his relationship with the president soured spectacularly.
Documents sent to investors and seen by Bloomberg said that Musk “may in the future serve in similar roles [to his position at DOGE] and devote significant time and energy to such roles,” in a warning about how involved, or not involved, the CEO may be in the future running of SpaceX.
Tesla stock tumbled during Musk’s brief tryst with the White House as he all but abandoned his role at the head of the company, and shareholders punished the car manufacturer over the CEO’s controversial policy decisions. Tesla stock plunged another 6.79 percent in early July after news broke about the formation of the America Party.
The tender offer values SpaceX at $400 billion, Bloomberg reported, calling it the highest valuation of a private company globally.
It allows shareholders to sell back their positions in the company and cash out while the start-up remains private. Bloomberg said the rocket and satellite maker plans to purchase back up to $1.25 billion in shares.
SpaceX did not immediately respond to requests for comment from The Daily Beast.
The fallout between Musk and Trump could have wider implications for SpaceX, too. The administration is said to be on the hunt for more partners for the Golden Dome missile defense system, a $175 billion project that SpaceX was set to dominate.
