President Donald Trump bought shares in SpaceX roughly two weeks after the company's highly anticipated IPO, according to sources familiar with the transaction. The purchase occurred when the stock was trading in the mid-$150 range, representing a premium over the $135 IPO price. By the close of trading on Monday, however, SpaceX shares had fallen back to their IPO price of $135, erasing the gains seen in the weeks following the public offering.
The disclosure of the president's investment comes amid heightened debate over ethical boundaries for public officials and their financial activities. SpaceX, founded by Elon Musk, went public in a blockbuster IPO that saw shares surge initially before declining. The company's valuation, driven by its dominance in satellite internet and space transportation, has made it a high-profile target for investors, including political figures.
Critics argue that the president's purchase raises conflict-of-interest concerns, given that SpaceX holds billions in government contracts with NASA and the Department of Defense. Federal ethics rules generally prohibit executive branch employees from engaging in financial transactions that create conflicts of interest, but the president is exempt from many of these provisions. However, the purchase may still be subject to insider trading laws if the president or his advisors had access to non-public information about the company's prospects.
The White House has not released details about the timing or amount of the purchase, nor whether it was made through a blind trust or directly. SpaceX declined to comment on the transaction, citing company policy not to discuss individual shareholders.
The stock's retreat to its IPO price reflects broader market volatility and concerns about the space industry's profitability trajectory, analysts said. SpaceX faces increasing competition from rivals such as Blue Origin and United Launch Alliance, while its Starlink satellite internet business is still scaling toward profitability.