Experts stress that for now, this wealth exists only “on paper.”
Elon Musk, the owner of SpaceX, Tesla, and X, may soon become the first trillionaire in history thanks to SpaceX’s initial public offering (IPO). Reuters reported this.
🔵 What happened. SpaceX carried out an IPO of 555.6 million common shares priced at $135 per share. The company’s initial valuation reached $1.77 trillion. As a result, SpaceX raised $75 billion in funding. The share sale became the largest IPO in history. Trading in the stock will begin on June 12 on the Nasdaq, with the main session opening at 16:30 Moscow time.
If Tesla’s share price remains unchanged and SpaceX stock rises to $138.50 by the start of trading on Friday, Musk will become the first trillionaire in world history, Forbes writes. Bloomberg reports that demand for the SpaceX IPO exceeded the number of available shares by more than four times.
Until now, the company had remained private, so Musk’s wealth was estimated based on transactions and internal documents. Now SpaceX will have a public market price, which will lead to a sharp revaluation of Musk’s fortune.
🔵 Caveats. The Washington Post notes that the entrepreneur became a trillionaire only “on paper.” SpaceX put a large block of shares up for sale, and that valuation will pay off only if it completes its most ambitious projects, such as creating a human colony on Mars. If those plans fail, the value of Musk’s assets will not be enough to regard him as a trillionaire.
In addition, SpaceX had previously reported substantial losses, mainly because of AI projects that failed to meet expectations.