U.S. Small Business Administration head Kelly Loeffler multiplied the value of her investment in Elon Musk’s SpaceX after she was nominated for the job, according to Reuters citing a review of her financial disclosures. This earned Loeffler millions from SpaceX’s IPO.
Later in 2025, Loeffler invested again in SpaceX and xAI between $1 million and $5 million, according to a separate financial disclosure covering her investments for all of 2025 that she signed on May 14. Reuters mentioned that Loeffler’s second investment has not been previously reported. Two independent government ethics attorneys agreed with Reuters’ assessment of Loeffler’s disclosure.
Cabinet members use ranges to declare the value of their assets on their required financial disclosure forms, and they do not disclose the dates of their investments before taking office.
The report mentioned that SpaceX is a military contractor for the U.S. government. Federal law prohibits cabinet members from participating in decisions involving a company in which they have a financial interest. Public records do not mention a financial relationship between SBA and xAI or SpaceX, and xAI was not mentioned on the public list of AI tools used by SBA employees in 2025.
READ: Musk says SpaceX could be worth more than ‘the rest of Earth’ if it achieves its goal (July 10, 2026)
Franco Granda, analyst at data provider PitchBook, said that Loeffler’s first investment in xAI would have been worth between $7 million and $2.6 billion on the day of the IPO, depending on the exact amount she invested and the date she made it. He also said that the second investment would have been worth between $2.2 million and $25.4 million that day.
The earlier the investment, the more it would have been worth at the time of IPO, he said. xAI’s valuation increased by more than 7,000% between its first investment round and January 5, 2025. SpaceX’s valuation more than doubled in 2025.
At least 10 Trump administration officials listed investments in SpaceX or xAI on their 2025 financial disclosure forms. None of them work for the Defense Department.
READ: SpaceX shares slide as IPO Euphoria begins cooling (June 21, 2026)
Loeffler’s investment form mentioned that she initially invested in xAI via a private placement. Private placements are typically open to select individuals and institutions with significant financial resources.
Loeffler was the founding chief executive at Bakkt, a bitcoin trading platform, and spent 16 years working at Intercontinental Exchange, the firm that owns the New York Stock Exchange, according to her LinkedIn profile. She also briefly represented Georgia in the Senate.
SpaceX had its much-anticipated IPO last month, valuing the company at $1.77 trillion — a record for an initial offering — and also made the company’s founder and CEO Elon Musk the first trillionaire.