Elon Musk has become the first person in history to surpass
the $1 trillion net worth mark, at least on paper, after SpaceX priced its
highly anticipated initial public offering (IPO) at $135 per share.
Prior to the IPO, Musk’s fortune was estimated at $813
billion, already making him the world’s wealthiest individual by a considerable
margin. According to Forbes, his wealth was more than double that of the
second-richest person, Google co-founder Larry Page, whose net worth stands at
an estimated $288 billion.
The formal pricing of SpaceX shares at $135 each pushed
Musk’s net worth to just over $1 trillion. The stock, which will trade under
the ticker symbol “SPCX,” is expected to begin trading on Friday when the
Nasdaq Composite opens at 9:30 a.m.
Musk’s fortune could rise further if SpaceX shares climb
above the IPO price. However, a decline in the stock could see his wealth fall
back below the trillion-dollar threshold.
The milestone highlights a level of personal wealth rarely
seen in modern history. A trillion dollars rivals the economic output of some
of the world’s largest economies. According to World Bank data, only 19
countries have gross domestic products exceeding $1 trillion, including the
United States and the Netherlands.
The development has also renewed debate about wealth
inequality. Oxfam America senior director of economic justice Nabil Ahmed
described Musk’s growing fortune as evidence of a widening gap between the
ultra-rich and the rest of society.
“Elon Musk’s rise to trillionaire status marks a new
pinnacle of oligarchy,” Ahmed said.
The SpaceX IPO is also expected to create substantial wealth
for thousands of employees and investors. According to the New York Times,
approximately 4,400 SpaceX workers could become millionaires once trading
begins.
Musk, however, remains the biggest beneficiary due to his
substantial ownership stake in the company.
How the Numbers Add Up
According to SpaceX’s IPO filing, Musk owns 4.8 billion
shares of the company, representing about 42 percent of the business. He also
holds 350 million stock options exercisable at $8.39 per share.
At the IPO price of $135 per share, Musk’s equity stake is
valued at approximately $648 billion, while his stock options add another $44.3
billion to his wealth.
Forbes had previously valued Musk’s pre-IPO SpaceX holdings
at around $500 billion. The public offering therefore adds roughly $192.3
billion to the value of his SpaceX stake, lifting his overall net worth to an
estimated $1.005 trillion.
According to Oxfam, that fortune exceeds the combined wealth
of the bottom 46 percent of the global population, or about 3.8 billion people.
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