On the cusp of SpaceX’s public offering (IPO), Elon Musk is about to become the world’s first trillionaire. This would be a mark of wealth never before seen in the history of commerce.
Musk already owns $273 billion in stocks and options thanks to his role as CEO of Tesla. But if the IPO of SpaceX — his rocket and artificial intelligence company — goes as planned next week, he could soon add another $841 billion to his net worth.
In that scenario, he would own nearly half the shares of SpaceX, whose IPO is on track to value the company at $1.77 trillion in total. Adding it all up, this would represent $1.11 trillion for Musk with just his two publicly traded companies.
The week will be decisive for Musk’s wealth. Next Thursday (10), the presentation stage to investors will begin. The final price definition is scheduled for June 11th, with shares trading on the Nasdaq on the 12th.
However, Musk’s wealth is wealth on paper, not a mountain of cash in some bank. In other words, it all depends on how investors will continue to evaluate their companies, Tesla and SpaceX, from now on.
In terms of comparison to get a sense of the magnitude of wealth, if someone spent US$ 1 million per hour, every day, it would still take more than a century to spend US$ 1 trillion.
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IPO in numbers
SpaceX, a company based in Starbase, Texas, plans to sell about 555.6 million shares at US$135 each, according to a document filed on Wednesday with the United States Securities and Exchange Commission (SEC). At that price, SpaceX would have a market value of nearly $1.77 trillion, based on the number of outstanding shares mentioned in the document.
Raising $75 billion, SpaceX’s IPO would easily surpass Aramco’s 2019 record $29.4 billion and pave the way for the debuts of OpenAI and Anthropic PBC. The companies are expected to seek IPOs in the tens of billions of dollars if both go ahead with their plans to go public later this year, catering to investors’ seemingly insatiable thirst for topics related to artificial intelligence.
SpaceX plans to use the resources to finance the expansion of its AI infrastructure, launch of rockets and satellites, as stated in the document. The company is required to use proceeds from certain debt financings and this IPO to repay, within six months, at least part of a $20 billion bridge loan, according to the document. Much of this loan was used to take out high-risk, high-interest debt for Musk’s social media and AI companies.
*With Bloomberg and Agência O Globo
