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Elon Musk became the world's first trillionaire on Friday after shares in his rocket and AI company, SpaceX, surged during its stock market debut on the Nasdaq exchange. The listing, which raised $75 billion, propelled Musk's estimated net worth to around $1.1 trillion, according to estimates cited by several outlets. The milestone — the first time anyone's fortune has crossed the trillion-dollar mark — immediately sparked debate about wealth inequality and the concentration of wealth among the top 1% of Americans.

Coverage comparison

Reports differ slightly on the exact figures, reflecting the fluid nature of stock valuations during the first day of trading. ABC Australia and The Hindu put SpaceX's valuation at around $2.1 trillion, while BBC reported $2.2 trillion. Deutsche Welle and the Jerusalem Post estimated Musk's net worth at $1.1 trillion, while ABC and BBC cited $1 trillion.

SpaceX's initial public offering (IPO) was priced at $135 per share. Deutsche Welle reported that the company sold about 555.6 million shares, raising $75 billion, making it the most lucrative IPO in history, surpassing the roughly $29 billion Saudi Aramco raised in 2019. BBC noted that the IPO is the biggest sale of its type ever.

On the first day of trading, shares opened at $150 and briefly reached $176.50, according to BBC, before closing at $160.95, up about 19%. Deutsche Welle reported shares closed at around $161, while also noting they had hovered around $173 in the afternoon, equating to a market capitalization of about $2.26 trillion.

South China Morning Post reported on subsequent trading, saying SpaceX shares rose 4.8% to close at $201.80, giving the company a market value of roughly $2.655 trillion — about $800 billion more than its value at the IPO and about $10 billion more than Amazon. The report noted that SpaceX's valuation is higher than Amazon's, and that the stock is expected to enjoy additional demand as it joins major indexes.

Key claims

  • Musk's net worth: Multiple outlets reported that Elon Musk's net worth is estimated to be around $1 trillion to $1.1 trillion, making him the world's first trillionaire. The Jerusalem Post reported his holdings surpassed $1.1 trillion, and that his wealth now exceeds the entire economic output of more than 125 developing countries.
  • SpaceX's valuation: Reports put SpaceX's valuation at around $2.1 trillion to $2.2 trillion after its IPO, with the South China Morning Post later reporting a market value of $2.655 trillion.
  • IPO details: Deutsche Welle reported that SpaceX sold around 555.6 million shares at $135 each, raising $75 billion, making it the most lucrative IPO in history. BBC confirmed the $75 billion raised and noted the shares closed at $160.95.
  • Musk's stake: BBC reported that Musk's 42% ownership stake in SpaceX was worth around $884 billion at the end of the first day, with his 12% stake in Tesla worth another $183 billion.
  • Wealth concentration: ABC Australia and The Hindu reported that the concentration of wealth among the top 1% in the US has become extreme, citing economist Gabriel Zucman's analysis that the top 0.00001% of the population could buy 14% of everything produced in the US in a single year.
  • Musk's comments: Deutsche Welle reported that Musk, speaking via videolink at the ceremonial bell-ringing, said the company was going public to fund goals like launching satellites and data centers into space, and reiterated his aim to "make life multi-planetary."
  • Political reaction: BBC reported that US Senators Bernie Sanders and Elizabeth Warren were among politicians who condemned the milestone, with Warren calling it a "wake up call" and arguing for wealth taxes.
  • Employee windfall: BBC reported that the IPO is expected to have made millionaires of more than 4,400 current and former SpaceX staff, who receive stock in lieu of part of their salary and benefits.

Perspectives

The SpaceX IPO and Musk's trillionaire status have drawn reactions from across the political spectrum.

Critics of extreme wealth: French economist Gabriel Zucman, writing in an ABC Australia report, argued that the explosion of billionaire wealth represents a fundamental tension with democracy. "For with the explosion of the wealth of the super-rich has come an explosion of their power," he said, citing the ability to tilt markets and shape public discourse. Senator Elizabeth Warren said the milestone should be a "wake up call" and underlined the need for wealth taxes, as reported by BBC. Senator Bernie Sanders also condemned the milestone, according to BBC.

Supporters of Musk's ventures: The South China Morning Post reported that investors are betting on Musk's sprawling empire, spanning rockets to AI, even though the stock carries a higher valuation than other trillion-dollar behemoths. The report quoted Joe Saluzzi, co-head of equity trading at Themis Trading, who noted the stock's trading patterns resembled "meme stocks" and cautioned that "you have to be very, very careful with these types of names."