Elon Musk has become the first person in history to surpass the $1 trillion net worth mark, at least on paper, after SpaceX priced its highly anticipated initial public offering at $135 per share.
Prior to the IPO, Musk’s fortune was estimated at $813 billion, already making him the world’s wealthiest individual by a considerable margin. According to Forbes, his wealth was more than double that of the second-richest person, Google co-founder Larry Page, whose net worth stands at an estimated $288 billion.
The formal pricing of SpaceX shares at $135 each pushed Musk’s net worth to just over $1 trillion. The stock, which will trade under the ticker symbol “SPCX,” is expected to begin trading on Friday when the Nasdaq Composite opens.
Musk’s fortune could rise further if SpaceX shares climb above the IPO price. However, a decline in the stock could see his wealth fall back below the trillion-dollar threshold.
The milestone highlights a level of personal wealth rarely seen in modern history. A trillion dollars rivals the economic output of some of the world’s largest economies. According to World Bank data, only 19 countries have gross domestic products exceeding $1 trillion, including the United States and the Netherlands.
The development has also renewed debate about wealth inequality. Oxfam America senior director of economic justice Nabil Ahmed described Musk’s growing fortune as evidence of a widening gap between the ultra-rich and the rest of society.
“Elon Musk’s rise to trillionaire status marks a new pinnacle of oligarchy,” Ahmed said.
The SpaceX IPO is also expected to create substantial wealth for thousands of employees and investors. According to the New York Times, approximately 4,400 SpaceX workers could become millionaires once trading begins. Musk, however, remains the biggest beneficiary due to his substantial ownership stake in the company.
According to SpaceX’s IPO filing, Musk owns 4.8 billion shares of the company, representing about 42 per cent of the business. He also holds 350 million stock options exercisable at $8.39 per share. At the IPO price of $135 per share, Musk’s equity stake is valued at approximately $648 billion, while his stock options add another $44.3 billion to his wealth.
Forbes had previously valued Musk’s pre-IPO SpaceX holdings at around $500 billion. The public offering therefore adds roughly $192.3 billion to the value of his SpaceX stake, lifting his overall net worth to an estimated $1.005 trillion.
According to Oxfam, that fortune exceeds the combined wealth of the bottom 46 per cent of the global population, or about 3.8 billion people.
