Elon Musk becomes the world's first trillionaire.
Musk recently wrote on his social platform: "Those who said 'money can't buy happiness' really hit the mark." Now, he is testing the truth of this statement on an unprecedented scale.
SpaceX's initial public offering (IPO) set a historic record, propelling Musk to an unparalleled level of wealth—the world's first billionaire with a net worth exceeding one trillion dollars.
According to the Bloomberg Billionaires Index, SpaceX stock opened at $150 per share in New York on Friday, an 11% premium over the issue price. The company’s valuation is about $2 trillion, and Musk’s personal wealth soared to roughly $1.05 trillion. The IPO raised $75 billion, setting the record for the largest IPO ever.
This wealth figure is more than three times that of the world’s second-richest person, Google co-founder Larry Page.
SpaceX and its combined business with xAI and X now accounts for over 70% of Musk’s total wealth. This milestone is not just a historic leap for individual wealth, but also marks Musk’s influence in the global business and political landscape rising to a new level.
As of press time, SpaceX is up 26.4%, trading at $170.
Astronomical Figures: What Does a Trillion Mean?
A fortune of one trillion dollars is almost beyond conventional understanding. This number is roughly equivalent to Switzerland’s annual gross domestic product.
To compare: Hedge fund manager Steve Cohen ranked among the world’s highest-paid last year with an income of $3.4 billion. At this rate, it would take him nearly 300 years to reach one trillion. If Musk were to distribute his estate equally among his 14 children after his death, each child’s inheritance would still rank 29th on the global rich list.
Independent compensation consultant Dan Walter said:
"We’re no longer talking about generational wealth, but about endless wealth."
Musk's political donations in the 2024 federal election exceeded $291 million, which seems enormous, but only accounts for less than 0.03% of his current net worth—equivalent to a millionaire donating $291.
SpaceX Listing: The Core Engine of Wealth Growth
Musk’s accumulation of wealth was initially driven by Tesla. The Austin-based electric vehicle company’s stock has soared about 35,000% since its 2010 IPO, and Musk remains its largest shareholder.
However, pushing his wealth past the trillion-dollar threshold was SpaceX. Founded by Musk in 2002 and headquartered at Starbase, Texas, the rocket and artificial intelligence company has leveraged its dominance in the orbital launch market and the 2019 launch of its satellite broadband service, Starlink, to attract massive capital inflows.
SpaceX was valued around $100 billion in a 2021 funding round, and by February this year, after Musk merged it with xAI and social media platform X, the valuation had jumped to $1 trillion. After this IPO, the merged business accounts for more than 70% of Musk’s net worth.
According to the Bloomberg Wealth Index, Musk’s fortune is overwhelmingly in the form of equity, with very limited cash and other assets. If he liquidates his holdings on a large scale, it could impact the valuation of the relevant companies.
A Rocky Road: The Twists Behind Wealth Accumulation
Musk’s rise from billionaire to trillionaire has not been smooth.
In the 2022 acquisition of Twitter, Musk was forced to sell more than $15 billion of Tesla stock, which put considerable pressure on Tesla’s share price. The acquisition was generally seen as overpriced.
The $56 billion “moonshot” compensation plan he negotiated with Tesla in 2018 was subsequently rejected by a Delaware judge after some shareholders filed a lawsuit.
Additionally, his joining the Trump administration’s Department of Government Efficiency (DOGE) and his public support for fringe political movements deterred many potential customers, affecting Tesla vehicle sales.
Nonetheless, these setbacks did not interrupt the trajectory of his wealth growth. After Twitter was renamed X, its data asset value jumped due to rising AI demand and was subsequently incorporated into xAI.
Tesla moved its registered location from California to Texas, and last year successfully appealed, not only retaining the original compensation plan but also securing a new incentive agreement—if the company achieves certain targets, the plan could be worth up to $1 trillion.
Meanwhile, Tesla investors have maintained some tolerance for declining vehicle sales, focusing instead on future businesses such as robotaxi and the Optimus humanoid robot.
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