Elon Musk Becomes the World’s First Trillionaire as SpaceX Soars After Historic IPO
Elon Musk has become the world's first trillionaire after a surge in the value of his holdings following SpaceX’s landmark debut on Wall Street on June 12.
Shares of SpaceX jumped 19 percent on their first day of trading in what has been described as the largest initial public offering (IPO) in history. The stock opened at approximately $150 per share, climbed to a high of $168, and closed the day at around $161.
The sharp rise in SpaceX’s valuation, combined with Musk’s stake in Tesla, pushed his net worth beyond the $1 trillion mark. Before the market opened, Forbes had estimated his wealth at $981 billion.
Musk now stands far ahead of the world's other richest individuals, including Google co-founders Larry Page ($296 billion) and Sergey Brin ($273 billion), Amazon founder Jeff Bezos ($247 billion), and Oracle chairman Larry Ellison ($227 billion).
Investor enthusiasm for SpaceX reflects confidence in Musk’s ambitious long-term vision, including plans for space-based data centers, advanced artificial intelligence infrastructure, and the creation of a permanent human settlement on Mars. The strong demand for SpaceX shares quickly lifted the company’s market value to nearly $2 trillion.
Musk first accumulated wealth through the creation of Zip2 and PayPal before investing heavily in Tesla and founding SpaceX. Tesla transformed the electric vehicle industry and generated extraordinary returns for investors, while SpaceX pioneered reusable rocket technology. Musk also oversees ventures such as The Boring Company and Neuralink.
According to a recent filing with the U.S. Securities and Exchange Commission (SEC), SpaceX aims to expand humanity’s presence beyond Earth by establishing bases on the Moon and Mars, potentially creating entirely new industries.
Speaking during a ceremonial bell-ringing event at Starbase, SpaceX’s headquarters in South Texas, Musk reiterated his long-term vision.
“We want to be able to take anyone who wants to go to the Moon, anyone who wants to go to Mars, or anywhere in the solar system—and perhaps beyond,” Musk said.
He added that the company’s goal is to make space travel accessible to ordinary people rather than a select group of astronauts.
Beyond space exploration, SpaceX is also pursuing ambitions in artificial intelligence and orbital computing infrastructure. The company plans to deploy data centers in space and strengthen its AI capabilities following the acquisition of Musk’s AI startup, xAI, earlier this year.
The “Elon Musk Premium”
Analysts say much of SpaceX’s valuation is driven by investor confidence in Musk himself—a phenomenon often referred to as the “Elon Musk premium.”
The company’s IPO prospectus emphasized Musk’s central role in its future, granting him 85 percent of the company’s voting power. The filing also warned that any change in control could significantly alter SpaceX’s strategic direction, management, and business plans.
Despite reporting cumulative deficits exceeding $41 billion and annual revenue of approximately $20 billion last year, SpaceX has attracted strong investor support. The company has stated that it does not intend to prioritize short-term quarterly earnings.
John Belton, a portfolio manager at Gabelli Funds, described SpaceX as “the ultimate growth stock,” citing its significant long-term potential.
Analysts point in particular to Starlink, SpaceX’s satellite internet division, as a major driver of future value. According to company filings, Starlink generated more than $11 billion in revenue last year, accounting for roughly 61 percent of SpaceX’s total revenue.
Massive Incentive Packages
Musk’s future compensation is tied to ambitious performance targets at both Tesla and SpaceX.
At Tesla, he could receive compensation worth up to $1 trillion if the company reaches milestones such as an $8.5 trillion market capitalization by 2035, selling one million Optimus robots, and deploying one million robotaxis commercially.
At SpaceX, Musk could potentially earn an additional $1.1 trillion if the company achieves a $7.5 trillion market value, establishes a permanent human colony on Mars, and develops 100 terawatts of computing capacity through space-based data centers.
For investors, the future of both SpaceX and Tesla remains closely linked to Musk’s ability to turn some of the world's most ambitious technological goals into reality.