Musk's trillions fuelled by AI and his pied piper power over investors

Elon Musk has become the world's first trillionaire following the stock exchange debut of his company, SpaceX. The company IPOd for $1.77 trillion and saw its valuation climb 20% on its first day of trading, reaching $2.1 trillion (approximately $3 trillion AUD). This staggering figure places Musk ahead of historical figures such as King Croesus and Mansa Musa in terms of personal wealth.

The valuation far outstrips that of Tesla, which Musk also leads. The article contrasts the $1.77 trillion SpaceX IPO with Tesla's Initial Public Offering in 2010, which was for $1.7 billion. The immense scale of SpaceX's valuation is highlighted by comparing 1.7 trillion seconds ago to 52,000 BC, when Neanderthals roamed the Earth, versus 1.7 billion seconds ago in 1972.

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not so much a company as an idea

However, the article questions the fundamental value of SpaceX, describing it as "basically a good internet company with an unprofitable rocket business and a substandard AI chatbot, and it loses money." The immense fees paid to Wall Street banks, $500 million in total, with Goldman Sachs and Morgan Stanley receiving $100 million each, are noted. Some commentators, like James Thomson, have called it "not so much a company as an idea," while economist Paul Krugman has less flatteringly labeled Musk a "human Ponzi scheme."

Ultimately, the piece suggests this phenomenon is akin to venture capital, where optimism fuels investment in high-risk dreams. Musk's unique ability to inspire millions to invest publicly, partly due to Tesla's past success and the sheer scale of his ambitions, spanning EVs, brain-computer interfaces, space travel, AI, and robotics, is presented as the driving force behind these extraordinary valuations.

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a human Ponzi scheme