SBA chief Loeffler earned millions from SpaceX pre-IPO stakes
Small Business Administration head Kelly Loeffler turned pre-confirmation investments in Elon Musk’s xAI into a multimillion-dollar windfall during SpaceX’s record $1.77 trillion IPO, raising fresh questions about federal ethics rules governing cabinet-level holdings in major government contractors.
Small Business Administration administrator Kelly Loeffler realized massive gains from SpaceX’s record initial public offering after investing millions in Elon Musk’s ventures just before taking office. Financial disclosures show she allocated between $1 million and $5 million to xAI on January 3, 2025, shortly before the artificial intelligence firm merged with SpaceX.
A second investment of equal size followed later in 2025, according to a disclosure signed on May 14, 2026, and obtained in June. Because federal filings only require cabinet members to report asset values in broad ranges without specific dates, Loeffler’s exact returns remain unclear. PitchBook analyst Franco Granda estimates the first tranche grew to between $7 million and $2.6 billion by the June 12 IPO date, while the second stake was worth between $2.2 million and $25.4 million.
The windfall underscores the staggering valuation trajectory of Musk’s empire leading up to the largest US IPO in history. SpaceX priced its offering at a $1.77 trillion valuation, capping a year where its market worth more than doubled. xAI’s valuation, meanwhile, surged over 7,000 percent between its initial funding round and January 2025.
For corporate governance professionals, the holdings present a complex ethical landscape because SpaceX is a major US military contractor. Federal law strictly prohibits cabinet members from participating in government decisions involving companies in which they hold a financial stake, a point confirmed by two independent government ethics attorneys. Public records indicate the SBA did not use xAI tools or conduct direct business with SpaceX during this period.
Loeffler is not alone in her financial ties to the Musk ecosystem, as at least ten Trump administration officials reported holding SpaceX or xAI investments in 2025. None of those officials worked at the Defense Department. The former Bakkt chief executive, who was confirmed to lead the SBA on February 19, 2025, did not respond to requests for comment.
