Elon Musk Approaches Trillionaire Status as SpaceX Plans IPO
Elon Musk, often referred to as the wealthiest person in the world, is inching closer to becoming a trillionaire. This development coincides with SpaceX’s impending initial public offering (IPO) set for next week.
According to SpaceX’s recently released IPO prospectus, Musk’s stock in the company is valued at approximately $866.5 billion. The upcoming IPO is expected to be priced at around $135 per share, which could value SpaceX at about $1.77 trillion.
This IPO marks a significant milestone for Musk, arriving 16 years after Tesla went public. Currently, he holds around $355 billion in Tesla shares, and with additional options, his total wealth could exceed $100 billion.
After the IPO, Musk will maintain over 82% of the voting power in SpaceX, as detailed in a regulatory filing. The company will issue two classes of stock, where Musk’s Class B shares carry ten votes for each Class A share, a structure similar to that used by notable tech figures like Mark Zuckerberg.
In the prospectus’s risk factors section, SpaceX noted that Musk’s substantial ownership provides him with a financial motivation to contribute to the company’s success. It also emphasized that once the 366-day lock-up period concludes, Musk may choose to sell all or part of his shares whenever he wishes.
Over the past decade, Musk’s fortune has grown steadily, particularly with significant gains in Tesla’s stock since 2013. He first gained the title of the world’s richest person in 2021, surpassing Amazon’s Jeff Bezos. Although Tesla’s stock dropped by 65% in 2022, it rebounded and reached new heights afterward.
Before the IPO, Forbes estimated Musk’s net worth at about $826 billion, considerably ahead of Google co-founder Larry Page, who stands just under $300 billion.
If SpaceX’s IPO on Nasdaq reaches its anticipated valuation, Musk will manage two of the eight most valuable U.S. companies. SpaceX’s valuation will exceed those of both Tesla and Meta, pushing his total wealth closer to the trillion-dollar mark.
Yet, in terms of revenue, SpaceX remains much smaller than these tech giants. Last year, the rocket company generated $18.67 billion, whereas Meta posted over $200 billion and Tesla nearly $95 billion in sales.
Investor speculation hints that Musk might be contemplating a merger of SpaceX and Tesla as part of a strategy to consolidate AI resources and streamline future fundraising. He has substantial financial incentives tied to both enterprises, coupled with ambitious performance goals.
SpaceX has outlined Musk’s compensation around two remarkable objectives: achieving a $7.5 trillion market cap and successfully establishing a colony on Mars with at least one million residents. In a related move, Tesla shareholders approved a multi-part compensation plan late last year, aligning payments with market cap growth and operational performance.
