SpaceX IPO Makes Elon Musk the World's First Trillionaire
SpaceX's IPO makes Elon Musk the world's first trillionaire
2026-06-12 18:07 Global Market Broadcast
Few business leaders are as deeply rooted in pop culture as Elon Musk. The ambitious entrepreneur has become a central figure in internet culture and amassed a fortune that makes him the world's first trillionaire.
Amid growing concerns about inequality and worsening public attitudes toward the super-rich, Musk has managed to retain a loyal following despite his towering wealth and lack of the affable, down-to-earth image that other tycoons like Warren Buffett enjoy.
While admirers see Musk's outspoken style as part of his charm, critics accuse him of wielding oligarchic power, raise concerns about his corporate governance, and oppose his increasingly partisan political interventions.
Nevertheless, SpaceX — a sprawling enterprise spanning rockets, satellites, and artificial intelligence, which together with electric car maker Tesla forms the core of Musk's business empire — set a record with a $75 billion IPO on Thursday, underscoring investor enthusiasm for his business projects. Before the share offering, Forbes estimated his net worth at around $780 billion, far ahead of second-ranked Alphabet co-founder Larry Page.
"The world's second-richest person currently has a net worth hovering around $300 billion, less than a third of what Musk could potentially be worth tomorrow," said Matt Durot, deputy editor of Forbes Wealth. "And so far, only one other person — Oracle founder Larry Ellison — has ever reached a net worth of $400 billion."
Most of Musk's current wealth comes from SpaceX, where his stake is worth about $866 billion. According to company filings, including Tesla and other assets, when shares begin trading on Friday, his net worth will exceed $1.1 trillion. That figure includes shares that will vest gradually over time.
Musk became a household name through Tesla and SpaceX, then further expanded his influence by acquiring social media platform Twitter for $44 billion in 2022. The deal gave him direct access to hundreds of millions of users and made him a prominent voice on issues ranging from politics and immigration to government spending and free speech.
His foray into politics, particularly his role in former US President Donald Trump's "Department of Government Efficiency" last year, is one of his most controversial moves. This political controversy coincided with a decline in Tesla sales across several international markets in 2025, amid protests and consumer boycotts against the electric vehicle maker.
The "Elon Premium"
Musk, 54, was born in Pretoria, South Africa, to a Canadian mother and South African father. He attended the University of Pennsylvania, graduating in 1997.
In 2008, he became CEO of Tesla, believing that electric vehicles could help reshape the global auto industry by combining high performance with software-driven features. Some auto industry observers say Tesla's success — and its market value of over $1 trillion — prompted traditional automakers to shift toward electric vehicles.
Many investors are betting he can repeat that success in space and artificial intelligence. However, SpaceX still faces funding shortfalls, and a large part of its valuation is based on technologies that may take years or decades to commercialize.
Beyond Tesla and SpaceX, Musk has co-founded five other companies, including tunnel startup The Boring Company and brain-computer interface device maker Neuralink.
As Tesla CEO, Musk has attracted both controversy and acclaim. He is credited with building Tesla into the world's most valuable automaker. Traditional auto executives, who long dismissed the threat, doubted that a startup could find a profitable way to mass-produce electric vehicles.
"He made the world respect American innovation in automotive engineering again," said Bob Lutz, former vice chairman of General Motors.
At the same time, Tesla has faced legal challenges and shareholder concerns due to its legendary CEO, especially his 2018 compensation package, which was once worth up to $56 billion.
Musk's influence is now so widespread that market observers refer to the business network around him as the "Musk economy."
This phenomenon has given rise to what some investors call the "Elon premium," a valuation boost driven by faith in Musk's vision as much as by traditional financial metrics.
"Similar to Tesla, SpaceX is essentially a bet on Elon Musk," said Matt Kennedy, senior strategist at Renaissance Capital, an IPO research and ETF firm.
"A market cap of $1.5 to $2 trillion would definitely upend all traditional valuation methods, and its essence is better defined as an 'Elon Musk premium.'"
The Real Face of Musk
The concentration of power in a single entrepreneur has intensified concerns about corporate governance, conflicts of interest, and the risks of tying a company's fate too closely to an individual.
Over the years, Musk has turned conflicts with regulators, billionaires, short-sellers, journalists, and media outlets — including Reuters — into repeated public showdowns, often played out on social media.
Musk's alliance with Trump followed a familiar pattern. After funding Trump's return to the White House and serving as a senior advisor through the government's "DOGE plan," Musk became one of the president's closest business allies.
Then disagreements over policy and spending led to a rift, escalating into a public feud. Although the two have since softened their tone, their split highlighted the increasingly blurred line between Musk's business empire and his political ambitions.
Yet for many investors, Musk's track record of turning big ideas into some of the world's most valuable companies outweighs concerns about his often unconventional behavior.
"Elon is the Edison of our time," said JPMorgan Chase CEO Jamie Dimon in a recent conversation with Musk.
The banker, once an adversary in a protracted legal battle, has become an admirer. Dimon told the media last year that the two had "hugged and made up," praising Musk as "our Einstein."
Editor: Liu Mingliang
Related topic: The Biggest IPO in History: Musk's SpaceX Plans to Raise $75 Billion
