Musk's Growing Power Becomes Worrying

SpaceX's stock market debut was a controlled explosion, valuing the company at $2 trillion after a 19% surge on its first day of trading. This valuation propelled entrepreneur Elon Musk, through his stakes in SpaceX and Tesla, to become the first person with a private fortune exceeding $1 trillion on paper. SpaceX shares opened another 6% higher on Monday.

A stock market listing is a form of democratization, shifting valuation from private shareholders to a broad, volatile public of investors. However, for SpaceX, this democratization is limited. Only 5% of the company's shares are publicly available, and Musk, through his super-voting shares, controls four-fifths of the company's decision-making power. He even dictated the initial share price of $135, bypassing the usual consultation process with investment banks.

Musk's influence extends beyond his immense capital. He has shaped market practices, with strict sanctions against early selling for private investors and discouragement for banks and existing shareholders. Nasdaq also adjusted its index rules to ensure automatic inclusion of SpaceX, compelling investors in the index to buy its stock. This demonstrates how Musk, a visionary entrepreneur, wields significant power not just through his wealth but also through the support and actions of his environment.

Musk also leverages this power politically. On his social media platform X, which is part of SpaceX, he actively supports far-right political movements in Europe. His actions have also impacted American bureaucracy, notably during the early months of the Trump administration. While his worldview is his own, as long as it remains within legal boundaries, it shapes his public and political influence.