U.S. Small Business Administration head Kelly Loeffler has seen her investment in SpaceX yield millions following the company’s recent IPO, raising questions about financial disclosure practices.
Kelly Loeffler, the head of the U.S. Small Business Administration (SBA), has significantly increased the value of her investment in Elon Musk’s SpaceX following the company’s initial public offering (IPO). A review of her financial disclosures, reported by Reuters, indicates that Loeffler earned millions from this investment.
In 2025, Loeffler made a second investment in SpaceX and xAI, ranging between $1 million and $5 million, as detailed in a financial disclosure she signed on May 14. This second investment had not been previously reported. Two independent government ethics attorneys concurred with Reuters’ assessment of Loeffler’s financial disclosures.
Cabinet members, including Loeffler, are required to declare the value of their assets in ranges on their financial disclosure forms, and they are not obligated to disclose the specific dates of their investments prior to taking office.
SpaceX serves as a military contractor for the U.S. government, and federal law prohibits cabinet members from participating in decisions involving companies in which they have a financial interest. Public records do not indicate any financial relationship between the SBA and xAI or SpaceX, and xAI was not listed among the AI tools utilized by SBA employees in 2025.
Franco Granda, an analyst at data provider PitchBook, noted that Loeffler’s initial investment in xAI could have been valued between $7 million and $2.6 billion on the day of the IPO, depending on the specific amount and timing of her investment. He also estimated that her second investment could have been worth between $2.2 million and $25.4 million on that same day. Granda emphasized that the earlier the investment, the greater its worth at the time of the IPO. xAI’s valuation surged by over 7,000% between its first investment round and January 5, 2025, while SpaceX’s valuation more than doubled in 2025.
At least ten officials from the Trump administration reported investments in SpaceX or xAI on their 2025 financial disclosure forms, none of whom are affiliated with the Defense Department.
Loeffler’s investment form indicated that her initial investment in xAI was made through a private placement, which is typically reserved for select individuals and institutions with substantial financial resources.
Before her role at the SBA, Loeffler was the founding chief executive of Bakkt, a bitcoin trading platform, and she spent 16 years at Intercontinental Exchange, the parent company of the New York Stock Exchange. She also briefly served as a senator for Georgia.
SpaceX’s much-anticipated IPO last month valued the company at $1.77 trillion, setting a record for an initial offering and making Elon Musk the world’s first trillionaire.
As the scrutiny surrounding financial disclosures continues, Loeffler’s investments in high-profile companies like SpaceX and xAI raise important questions about transparency and potential conflicts of interest within government positions, according to Reuters.