Elon Musk, the world’s wealthiest man, is approaching trillionaire status as SpaceX prepares for its IPO next week.
CNBC reports that SpaceX CEO Elon Musk’s stake in SpaceX is valued at $866.5 billion according to the company’s updated IPO prospectus released on Wednesday. The space exploration firm announced plans to price its upcoming IPO at $135 per share, targeting a total company valuation of approximately $1.77 trillion.
The SpaceX public offering represents a significant milestone for Musk, arriving 16 years after he took Tesla public. Musk currently holds stock in the electric vehicle manufacturer worth about $355 billion, with additional options that could contribute over $100 billion to his total wealth.
According to Wednesday’s regulatory filing, Musk will maintain voting control exceeding 82 percent of SpaceX following the offering. SpaceX will have two types of shares, with Musk’s class B shares having 10 votes for every vote of a class A share. This is a structure used by Silicon Valley giants like Mark Zuckerberg’s Meta.
In the risk factors section of the prospectus, SpaceX stated, “We believe that Mr. Musk’s substantial ownership interest in us provides him with an economic incentive to assist us to be successful.” The document further notes that after the 366-day lock-up period expires, “Mr. Musk will not be subject to any obligation to maintain his ownership interest in us and may elect at any time thereafter to sell all or a substantial portion of or otherwise reduce his ownership interest in us.”
Musk’s wealth accumulation has been building consistently for more than a decade, with Tesla’s stock experiencing significant growth beginning in 2013. He initially claimed the title of world’s richest person in 2021, surpassing Amazon founder Jeff Bezos. Despite Tesla’s stock plummeting 65 percent in 2022, it subsequently recovered and reached new record levels in subsequent years.
Ahead of the SpaceX IPO, Forbes estimates Musk’s net worth at $826 billion, substantially ahead of Google co-founder Larry Page, who holds second place with a net worth just below $300 billion.
If SpaceX debuts on the Nasdaq next week at or near its projected valuation, Musk will oversee two of the eight most valuable United States companies. SpaceX would rank ahead of both Tesla and Meta among companies with trillion-dollar valuations. His wealth on paper would also soar to the trillion dollar level based on the increased valuation of the space company combined with Tesla and other interests.
However, by revenue metrics, SpaceX remains considerably smaller than these technology giants. The rocket company generated sales of $18.67 billion last year. In comparison, Meta recorded revenue exceeding $200 billion, while Tesla reported sales of almost $95 billion.
Recent investor speculation has suggested that Musk’s long-term strategy might involve merging SpaceX and Tesla as a method to consolidate AI resources and simplify future capital raising efforts. He maintains lucrative economic incentives at both companies that include ambitious performance benchmarks.
SpaceX has structured Musk’s compensation rewards around two extraordinary milestones: achieving a $7.5 trillion market capitalization and successfully colonizing Mars with at least one million inhabitants. Meanwhile, Tesla shareholders approved a compensation plan late last year comprising 12 tranches, with each payment tied to market capitalization increases and operational achievements.
Read more at CNBC here.
Lucas Nolan is a reporter for Breitbart News covering issues of AI, free speech, and online censorship.
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