Elon Musk Becomes World’s First Trillionaire as SpaceX IPO Pushes Fortune Past $1 Trillion

SpaceX shares surged 23% in their Nasdaq debut on Friday as investors rushed into the world’s largest IPO, betting on Elon Musk’s expansive business empire that spans rockets, internet services, and artificial intelligence.

The stock was last trading at $166 per share after opening at $150, making SpaceX the sixth-largest company in the United States with a market value exceeding $2 trillion.

The company’s market debut is being seen as a test case for a new wave of mega IPOs, with investors closely watching demand ahead of potential listings by AI giants Anthropic and OpenAI.

SpaceX’s share performance has drawn particular attention, with some bankers warning that a close below the IPO price of $135 per share could signal challenges for the broader IPO market.

The landmark listing also cemented Musk’s position as the world’s first trillionaire, despite SpaceX reporting a loss of nearly $5 billion last year and generating far less revenue than other technology companies with similar valuations.

“Elon deserves an extreme premium because of his track record and his ability to identify technology trends early,” said Shaun Maguire, a partner at Sequoia Capital, which invested $2 billion in SpaceX. According to a source familiar with the matter, that stake would now be worth more than $20 billion at the IPO price.

SpaceX President Gwynne Shotwell and Chief Financial Officer Bret Johnsen rang the Nasdaq opening bell on Friday.

World’s Largest IPO

The IPO marks the culmination of Musk’s long-term ambitions in space and technology and has rewritten Wall Street’s traditional IPO playbook by attracting large numbers of retail investors.

At $75 billion, the offering raised more than twice the amount generated by Saudi Aramco’s record-breaking 2019 IPO.

The company’s valuation could increase further if underwriters exercise their option to sell additional shares within the next 30 days.

While SpaceX may have to wait before joining the S&P 500, it is expected to gain rapid entry into the Nasdaq 100 under new fast-track rules, making it a major holding for index-tracking funds and ETFs and creating additional demand for its shares.

“We have to go back 100 years to find comparable entrepreneurs. He’s a visionary unlike others and executes exceptionally well,” said Joel Shulman, CEO of ERShares.

The company is expected to be added to the Nasdaq 100 within about a month, compared to the traditional wait of up to a year.

Some analysts believe SpaceX’s debut could trigger a reshuffling of investor portfolios, prompting funds to move money out of other technology companies. Shares of several space and satellite firms fell sharply on Friday, with Planet Labs dropping 8% and EchoStar losing 14%.

A $28.5 Trillion Market Opportunity

Despite the enthusiasm surrounding the IPO, determining SpaceX’s true value remains a challenge.

The company estimates its addressable market at $28.5 trillion, which it describes as the largest opportunity in human history. Investors point to its dominant position in space launches and growing Starlink business as strong foundations for future growth.

John Belton, portfolio manager at Gabelli Funds, compared SpaceX to Tesla, noting that both companies combine established businesses with ambitious future opportunities.

“For Tesla, that includes humanoid robotics and other emerging technologies. For SpaceX, it’s the AI business,” Belton said.

With revenue of $18.7 billion in 2025, SpaceX trades at a price-to-revenue ratio of around 94, highlighting the premium investors are willing to pay for future growth.

Some analysts remain cautious. Morningstar recently estimated the company’s fair value at roughly $780 billion, while CFRA initiated coverage with a sell rating.

“This is not a stock investors buy based on fundamentals alone,” said Nancy Tengler, CEO and CIO of Laffer Tengler Investments. “The comparison is Amazon — a company that fundamentally changed how we live. Even if the stock fell to $100, it wouldn’t alter our long-term outlook. We want to be part of that journey.”