Elon Musk set to become world's first trillionaire with SpaceX IPO worth $1.77 trillion

Elon Musk is poised to become the world's first trillionaire following reports that he intends to offer SpaceX shares at a fixed price of $135 in an initial public offering (IPO). CNBC reported that SpaceX plans to sell 555.6 million shares, aiming to raise about $75 billion. An additional 83.33 million shares will be available to initial investors after the IPO, while Musk will retain 82% voting control of the company.

At the reported fixed rate, SpaceX would be valued at an astounding $1.77 trillion. Major investment banks like Goldman Sachs, Morgan Stanley, Bank of America, Citi Group, and JP Morgan Chase are reportedly interested in participating. The Nasdaq debut is anticipated by June 12, according to Musk's estimates. This valuation is a significant leap, especially considering the company's own internal valuation after merging with Musk's AI company, xAI.

Forbes estimates that Musk will hold a 42% stake in SpaceX, valued at $688 billion, if the IPO rates are confirmed. Before the IPO, his stake was valued at around $500 billion. This 13-digit net worth is achieved by combining SpaceX's post-IPO valuation with his significant holdings in Tesla (worth approximately $174 billion), Neuralink, and The Boring Company, along with profits from previous Tesla share sales.

The crucial element enabling Musk's trillion-dollar status is the SpaceX-xAI merger, which itself is linked to his 2022 acquisition of Twitter for $44 billion. After rebranding the platform to X and launching the AI model Grok, which used X as its training ground, Musk founded xAI. This AI company later merged with X, valuing the combined entity at approximately $113 billion. The subsequent merger with SpaceX, valuing that company at $250 billion, resulted in a net gain of $206 billion from the initial Twitter acquisition cost.