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Elon Musk has officially become the world's first trillionaire following the initial public offering (IPO) of his company, SpaceX, on Friday (June 12). The company, which went public on the Nasdaq under the ticker SPCX, raised $75 billion by selling shares at $135 each. SpaceX's valuation now exceeds $2 trillion, making it the largest IPO in history.
Musk holds approximately 42% of SpaceX's equity, which translates to about $869.4 billion, based on the current trading price of $158 per share. Combined with his substantial holdings in Tesla, valued at approximately $278.2 billion, Musk's total wealth has surpassed $1 trillion.
According to Yahoo Finance, SpaceX's rapid growth is driven by its Starlink satellite internet service, which generates the majority of the company's revenue. Despite annual losses due to investments in its Starship rocket and AI ventures, investors are optimistic about Musk's vision.
The Guardian reports that SpaceX's IPO has sparked concerns about economic inequality. Oxfam has criticized Musk's trillionaire status, calling it "a dark day for democracy." The nonprofit suggests that Musk's wealth could exacerbate economic disparities.
Democracy Now! highlights concerns about the IPO's impact on regular investors, with claims that the rapid valuation increase could lead to financial losses for those involved in index funds. Despite these concerns, SpaceX's IPO marks a significant milestone in the financial world, with Musk's wealth reaching unprecedented levels.