Breaking: Elon Musk Becomes World’s First Trilionaire As SpaceX Stock Soars 27% On Debut

Elon Musk became the world’s first trillionaire on Friday after SpaceX shares rose 27% in the stock market for their initial public offering. The surge increasing the company’s valuation by hundreds of billions of dollars. Moreover, it further boosted Musk’s wealth as the world’s richest person.

SpaceX IPO Makes Elon Musk The First Trillionaire In The World

The historic milestone was only a few hours after SpaceX successfully held a record-breaking initial public offering of $75 billion. It was the largest IPO in the company’s history, as it sold 556 million shares at a $135 initial price. This put the company at a $1.77 trillion valuation.

Strong demand carried over into the first day of trading. After the stock’s oversubscription by about four times was reported, investors raced in during the launch. The SpaceX stock shot up by 27.4% to open at $172 on Friday.

Retail investors were responsible for some $70 billion, even though they had only $22.5 billion worth of shares reserved. Meanwhile, about 70% of shares sold to institutions were allocated to long-only investors alongside sovereign wealth funds.

The rally was a game-changer for Elon Musk personally. It’s because he owns a large enough stake in SpaceX that the increase in its value meant an equally massive increase in his personal wealth. Today, him and Gwynne Shotwell rang the Nasdaq opening bell.

Prior to the listing, his net worth was estimated at around $780 billion. His wealth hit the $1 trillion mark when the stock price was trading well above the IPO price.

The achievement marks Musk’s rise to a level of his own in the ranks of the world’s super-rich.

“The second richest person has been hovering around $300 billion, so about less than one-third of what Musk can potentially be worth tomorrow,” stated Matt Durot, deputy editor at Forbes Wealth on Thursday. He added “And only one other person, Larry Ellison, has ever been worth $400 billion,” per Reuters report.

SpaceX has become the lifeblood of Musk’s business, from rockets to satellite communications, AI projects. Now, it is the company that’s the basis for most of his fortune.

Meanwhile, Binance Wallet’s tokenized SpaceX stock also attracted $557 million in commitments lately. Moreover, the hype has continued after the shares began trading.

SpaceX Stock Eyes Massive Volatility

Before the SpaceX IPO launch, analysts had pointed out the possibility of huge price fluctuations due to strong retail involvement.

“The projected size and retail participation are likely to drive significant volatility alongside excitement around the SpaceX IPO,” Sam Grelck, the equity strategy analyst at Truist, wrote in a note.

However, the SpaceX stock’s opening-day run notwithstanding, it was a historic day in financial markets. Additionally, it puts Elon Musk in history as the first individual to achieve a trillion dollar valuation.