Featured Image: yourNEWS Media Illustration
Elon Musk became the world’s first trillionaire after SpaceX’s historic Nasdaq debut sent the rocket and satellite company’s valuation to $2 trillion.
By yourNEWS Media Newsroom
Elon Musk became the first person in the world to reach trillionaire status after SpaceX’s public market debut lifted the value of his holdings across SpaceX and Tesla Motors.
The milestone came by the end of the June 12 trading session, after SpaceX began trading on the Nasdaq in what was described as the largest initial public offering in history. Investor demand for the rocket, satellite and artificial intelligence company quickly pushed SpaceX’s valuation to $2 trillion shortly after its debut.
Before the market opened, Forbes estimated Musk’s net worth at $981 billion. The post-IPO rise in SpaceX shares moved him beyond the trillion-dollar mark, widening his lead over other major technology billionaires, including Google co-founder Larry Page at $296 billion, Google co-founder Sergey Brin at $273 billion, Amazon founder Jeff Bezos at $247 billion and Oracle co-founder Larry Ellison at $227 billion.
SpaceX’s offering drew investor enthusiasm around Musk’s long-term plans, including expanded rocket reuse, Starlink growth, lunar and Mars missions, space-based data centers and artificial intelligence ambitions. The company’s public debut also reflected a broader bet that Musk could repeat the market gains seen at earlier ventures.
Musk first built his fortune through PayPal and Zip2, then used proceeds from those businesses to invest in Tesla and launch SpaceX. Tesla helped reshape the electric vehicle market and has delivered a 31,000 percent return to shareholders since its 2010 public debut. SpaceX, meanwhile, developed reusable rocket technology and built Starlink into a major satellite internet business. Musk also remains tied to The Boring Company and Neuralink.
In its Securities and Exchange Commission filing earlier this month, SpaceX said its mission includes making life multi-planetary, beginning with a sustained human presence on the moon and Mars. The company said those efforts could open the door for new industries beyond Earth.
“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 maybe beyond the solar system,” Musk said during a ceremonial bell ringing from Starbase, SpaceX’s South Texas headquarters.
“At some point, we want to be able to take you there, not just a few astronauts, I mean you, literally you.
“Whoever you are watching this, SpaceX wants to be able to take you to the moon, take you to Mars, and ultimately beyond.”
SpaceX is also pursuing plans to launch data centers into orbit as part of its effort to compete in the artificial intelligence sector. The company acquired xAI, Musk’s AI startup, in February and has positioned itself as a potential rival to Anthropic and OpenAI in the race to expand computing capacity.
That combination of space infrastructure, satellite communications, AI ambitions and Musk’s track record is what some market watchers describe as the Elon Musk premium.
SpaceX’s IPO prospectus emphasized Musk’s central role in the company’s future. The filing stated that the company’s direction depends heavily on Musk and disclosed that he holds 85 percent of voting power. It also warned that if Musk were to sell his stake and another shareholder gained control, “any such change in control could result in changes to our strategic direction, management, business plans or policies” and could harm the business.
The company has reported cumulative deficits exceeding $41 billion, while revenue reached about $20 billion last year. SpaceX also stated that it does not plan to prioritize quarterly earnings.
Still, investors supported SpaceX’s $1.77 trillion debut valuation, with many focused on its long-term growth prospects.
“SpaceX is the ultimate growth stock,” John Belton, portfolio manager at Gabelli Funds, said in a note emailed to The Epoch Times.
“I think this is a company with significant growth potential ahead of it. It’s definitely going to be a long-term story, and I think it will take time for the stock to find its footing in the public markets. But there are a lot of exciting opportunities ahead.”
Belton said SpaceX may be benefiting from the same Musk premium seen in Tesla. He said Tesla still has long-term earnings potential, and SpaceX could eventually develop the same profile, particularly through Starlink.
“It’s not hard to see why that business alone could command a very high valuation,” Belton said.
According to the SpaceX prospectus, Starlink generated more than $11 billion in revenue, representing about 61 percent of the company’s total revenue.
Musk’s future compensation is also tied to major milestones at both Tesla and SpaceX. At Tesla, he could earn up to $1 trillion if the company meets targets that include reaching an $8.5 trillion market capitalization by 2035, selling 1 million Optimus robots and commercially deploying 1 million robotaxis.
At SpaceX, Musk could receive a $1.1 trillion payday if the company reaches a $7.5 trillion market capitalization, establishes a permanent human colony on Mars and achieves 100 terawatts of compute capacity through space-based data centers.
The SpaceX IPO marks a defining moment for Musk’s fortune and for public investors who are now able to buy into a company built around ambitions that extend from satellite internet to Mars settlement.
Original article
Comments