Elon Musk Becomes World's First Trillionaire
Elon Musk on Friday became the world's first trillionaire after shares in his SpaceX rocket company surged during the largest stock market debut ever recorded.
The founder of Tesla and SpaceX solidified his position as the world's richest individual, with his total net worth reaching $1.11 trillion (£828 billion) according to the Bloomberg rich list.
This milestone coincided with the rocket, telecommunications, and artificial intelligence (AI) company’s listing on the Nasdaq stock exchange at a valuation of $2.2 trillion.
SpaceX announced its shares would be priced at $135 each, but trading opened at $150 and briefly climbed to $176.50, reflecting investor enthusiasm for Musk’s ventures in space and related industries.
Shares of SpaceX closed on Friday at approximately $161.
The initial public offering (IPO) raised $75 billion from investors and underwriters prior to the shares becoming publicly tradable on Friday.
Musk holds a 42% ownership stake in SpaceX, granting him near-complete control over the company’s operations and the discretion to allocate the invested funds as he sees fit.
According to Bloomberg, Musk’s SpaceX shares were valued at $752.3 billion at the close of trading, with an additional $53.8 billion in SpaceX options. He also owns $168 billion in Tesla shares and $116.4 billion in Tesla options.
World's First Trillionaire Sparks Debate on Wealth Inequality
Musk’s emergence as the world’s first trillionaire immediately ignited discussions regarding wealth inequality. His net worth now rivals the entire economic output of countries such as Poland or Switzerland.
This unprecedented level of wealth has made Musk a significant and polarizing figure in global politics.
He contributed hundreds of millions of dollars to the re-election campaign of former US President Donald Trump after criticizing the country's leadership. For several months last year, Musk led the Department for Government Efficiency (Doge).
Through substantial government spending cuts, Musk was responsible for the closure of the US Agency for International Development (USAID).
Researchers publishing in the Lancet medical journal warned that such cuts could result in more than 14 million additional deaths by 2030.
Musk has also publicly criticized leadership in the UK and other countries, often addressing topics related to immigration and the promotion of racial divisions.
He has repeatedly clashed with UK Prime Minister Sir Keir Starmer, including over the murder of 18-year-old British student Henry Nowak.
Democratic US senators Bernie Sanders and Elizabeth Warren were among many politicians condemning Musk’s trillionaire status. Warren described it as a
"wake up call"and argued it highlights the necessity for wealth taxes.
However, Musk’s trillionaire status is largely theoretical, as his wealth is almost entirely tied to his stock holdings in Tesla and now SpaceX. He is restricted from selling any SpaceX stock for at least one year.
The public listing of SpaceX is also expected to have created millionaires among more than 4,400 current and former employees through shares granted as part of their compensation.
SpaceX’s Financial Position and Business Focus
SpaceX’s valuation is primarily based on optimistic projections of future earnings rather than demonstrated financial performance.
The company is currently unprofitable, incurring losses exceeding its operational income.
Financial filings indicate that SpaceX lost more than $9 billion in 2025 and 2026 combined, largely due to significant expenditures on AI and infrastructure investments.
The core of SpaceX’s business remains the manufacturing and launching of rockets with reusable components.
Additionally, SpaceX produces and deploys Starlink internet satellites. Following this year’s acquisition of xAI, another Musk-owned company, SpaceX has expanded into the AI sector.
The company stated it will utilize the funds raised to
"fuel its growth strategy"focusing on rockets, satellites for the expanding Starlink internet service, and AI, including speculative plans to construct data centers in orbit.
Nancy Tengler, head of Laffer Tengler Investments and a SpaceX shareholder, described the company’s AI segment as a
"cash incinerator"despite Musk’s ambitions for the business.
"It's important to take some of the projections with a grain of salt,"Tengler said.
Nonetheless, she is investing in SpaceX for its long-term potential.
"Our investment horizon is three, five, and even ten years,"Tengler noted.
She also anticipates a merger between SpaceX and Tesla within the next two years, potentially creating a company valued higher than either entity alone.
SpaceX’s Ambitious Mission and Investor Sentiment
SpaceX’s ambitions extend beyond satellites and mergers.
According to its IPO prospectus, the company’s mission is
"To build the systems and technologies necessary to make life multiplanetary, to understand the true nature of the universe and to extend the light of consciousness to the stars."
SpaceX indicated that its future growth and success heavily depend on developing what it terms the
"lunar economy."
This concept involves regular transportation of people and cargo to the Moon and Mars, which would be essential for establishing a sustainable economy in space.
The company acknowledges uncertainty regarding the feasibility of such initiatives.
"Many of our initiatives… involve significant technical complexity, unproven technologies or technologies that do not exist, and such initiatives may not achieve commercial viability,"the prospectus states.
Despite these uncertainties, investor enthusiasm was evident on Friday.
Susannah Streeter, chief investment strategist at Wealth Club, commented that the share price surge was
"indicative of huge interest in Elon Musk's vision."
"He has long been reaching for the stars with his extra-terrestrial ambitions, and it appears plenty of investors share his enthusiasm for the future,"she added.
However, Streeter cautioned that the rally was
"being driven as much by hype and scarcity as fundamentals."
Investor Concerns and Market Outlook
While many individual investors were eager to participate in SpaceX’s public listing, concerns were raised about the exposure of other investors who might be affected indirectly.
Pension funds and savings accounts often invest in index-linked funds that include major companies like SpaceX, making them vulnerable to fluctuations in its share price.
The future trajectory of SpaceX’s stock price is a key concern for such investors.
Sam Kerr, head of equity capital markets research at Mergermarket, stated,
"The question on SpaceX is less about the immediate trading after IPO. It's more about how the price holds over the longer term."
