Musk Becomes World's First Trillionaire as SpaceX's Market Debut Ignites Investor Frenzy

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New York: Elon Musk has become the world's first trillionaire after a blockbuster stock market debut by SpaceX sent the value of his holdings soaring.

According to Bloomberg's wealth rankings, Musk's net worth rose to about $1.11 trillion following SpaceX's listing on the Nasdaq stock exchange. The surge further strengthened his position as the world's richest person.

SpaceX, which operates in rocket launches, satellite communications and artificial intelligence, debuted with a valuation of around $2.2 trillion. The company's shares were priced at $135 each but opened at $150 and briefly climbed to $176.50 before ending the day at about $161.

The initial public offering raised $75 billion, reflecting strong investor enthusiasm for Musk's ventures and the company's future growth prospects. Musk owns a 42% stake in SpaceX, giving him significant control over the business. Bloomberg estimated that his SpaceX holdings were worth more than $767 billion at the close of trading, in addition to his substantial investments in Tesla.

The milestone immediately reignited debate over wealth inequality and the growing influence of billionaires in politics and society. Critics noted that Musk's fortune is comparable to the annual economic output of some nations.

Several political figures, including U.S. senators Bernie Sanders and Elizabeth Warren, argued that Musk's trillionaire status highlights the need for policies such as wealth taxes. However, much of Musk's fortune exists only on paper because it is tied to the value of his shares and stock options, many of which cannot be sold immediately.

SpaceX's public listing also created wealth for thousands of current and former employees who received company shares as part of their compensation packages.

Despite investor optimism, SpaceX remains unprofitable. Financial filings showed the company lost more than $9 billion during 2025 and 2026 as it invested heavily in artificial intelligence and infrastructure projects.

The company's core business focuses on developing reusable rockets and operating the Starlink satellite internet network. Following its acquisition of xAI earlier this year, SpaceX expanded further into the AI sector. The company said the funds raised through the listing would support future growth in rockets, satellites and AI initiatives, including ambitious plans such as building data centres in orbit.

Analysts remain divided over the company's long-term prospects. Some investors view SpaceX as a transformative business with enormous potential, while others warn that its valuation is being driven by optimism rather than proven financial performance.

SpaceX said its long-term goal is to develop technologies that could enable human life beyond Earth, including a future 'lunar economy' involving travel to the Moon and Mars. The company acknowledged that many of these projects rely on unproven technologies and may not succeed commercially. Despite these risks, investors showed strong confidence in SpaceX during its market debut.

Pic Credit: AFP