Elon Musk is the first person in the world to reach a trillion-dollar net worth after the SpaceX public offering.

Elon Musk’s Impact at SpaceX IPO

During SpaceX’s IPO event, Elon Musk delivered an insightful speech where he reflected on his early uncertainties regarding the company’s future. He highlighted, rather passionately, the significance of making life multiplanetary and the necessity for a thrilling future for humanity.

On Friday, SpaceX shares started trading at $150, surpassing its initial public offering (IPO) price of $135. This momentous occasion made Musk the world’s first trillionaire.

The rocket and satellite firm managed to raise an astounding $75 billion, placing its value at roughly $1.8 trillion, which led to Musk’s SpaceX stock being valued at about $690 billion. After the IPO pricing, the company began trading on the Nasdaq under the ticker “SPCX.”

Considering his stakes in Tesla and other assets, Musk’s net worth is estimated to be around $1.1 trillion.

In the first moments of trading, SpaceX shares surged to $168.75 but later corrected to around $158 per share.

Investor Enthusiasm for SpaceX

The demand for SpaceX stocks has been exceptionally high. Reports indicate that the company attracted over $250 billion in orders, with individual investors alone accounting for more than $70 billion in claims on stock, according to Bloomberg.

SpaceX aims to set aside at least 20% of the offering for individual investors, a notably substantial allocation for an IPO of this scale.

The $75 billion raised has positioned SpaceX as the largest IPO ever, surpassing Saudi Aramco’s previous record of $29 billion in 2019. This IPO has solidified Musk’s status as the richest man globally, a milestone never before reached.

Founded in 2002, SpaceX has evolved into a leader in the space industry, notably revolutionizing rocket technology which has significantly reduced launch costs. The company plays a crucial role in NASA and the U.S. government’s missions, both for civil and security purposes. Its satellite internet division, Starlink, also contributed substantially to SpaceX’s revenue, bringing in about $18.67 billion last year.

Maintaining Control

SpaceX’s IPO was highly awaited on Wall Street, and the company’s growth trajectory has left many investors eager to acquire shares. The firm will implement a dual-class stock structure to ensure Musk retains control; Class B shares will have ten votes each, in contrast to the single vote for publicly traded Class A shares. After the IPO, Musk is expected to hold around 85% of the voting rights.

According to analyses, approximately 4,400 current and former SpaceX employees might become billionaires due to stock options accrued during their tenure with the company.

If trading remains favorable post-IPO, SpaceX’s valuation could further increase, elevating Musk’s net worth and benefiting the many employees and investors who have supported the company’s journey.