Elon Musk Becomes the First Trillionaire as SpaceX Debuts on Nasdaq
In Focus
- Musk’s stake at SpaceX will likely rise to $866 billion upon SpaceX stock trading
- SpaceX has raised $75 billion in through a historic IPO
- The company set a $135 per share price for its stock
SpaceX has raised $75 billion in its IPO and made Elon Musk the first trillionaire in the world. The rocket company priced 555.6 million shares at $135 each. The SpaceX stock is set to start trading on the Nasdaq on June 12 under the SPCX ticker symbol.
Why is the SpaceX IPO Historic?
Several aspects make the SpaceX public listing historic. The first aspect is the size and significance of SpaceX’s $75 billion IPO. The listing was more than double that of oil company Saudi Aramco which raised $29.4 billion in its 2019 market debut.
The other aspect is the impact of the listing on the market. SpaceX was already valued at hundreds of billion in the private markets. At $135 per share, SpaceX’s market valuation now stands at $1.77 trillion in the public markets. The company’s listing will likely reshape institutional portfolios and equity indices globally due to its influence in space launch and aerospace services.
The other aspect that makes the SpaceX IPO historic and unique is the fact that it’s not an ordinary company. Its businesses span rocket making and launching, global satellite internet via Starlink, and defence space infrastructure. The company flagged orbital data centers challenges in its pre-IPO filing.
This focus gives it complex but strategic importance. Its public listing will attract intense scrutiny from investors and governments even as the company works to strike a balance between its high-risk space ambitions and public market expectations.
How Will Elon Musk Reach $1 Trillion?
Musk admirer’s tend to find appeal in his no-filter approach to running his companies. However, critics have raised concerns about governance structures in those entities. Despite the divided opinion, SpaceX managed to excite investors, attracting orders worth more than $70 billion from individual investors.
The company is expected to allocate at least 20% of shares to retail investors. Before the share sale, Forbes placed Musk’s net worth at about $780 billion. At the price of $135 per share, his stake at SpaceX, including options, will likely rise to $866 billion. Combined with his Tesla stake and his other properties, Musk’s net worth will exceed $1.1 trillion once the SpaceX stock starts trading.
“The second richest person has been hovering around $300 billion, so about less than one-third of what Musk can potentially be worth tomorrow. And only one other person, (Oracle founder) Larry Ellison, has ever been worth $400 billion,” Forbes Wealth Deputy Editor, Matt Durot noted as cited by Reuters.
What Governance Concerns Has the SpaceX IPO Raised?
The SpaceX IPO has raised concerns about concentrated power around one entrepreneur, governance issues, conflicts of interest, and overreliance on a single figure. Musk has repeatedly clashed with regulators, journalists, and media outlets through public disputes on social media. Despite criticism, many investors focus on his record of building highly valuable companies. JPMorgan Chase CEO Jamie Dimon has previously praised Musk as “the Edison of our time” and called him “our Einstein”.
