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SpaceX's public market debut has boosted Elon Musk’s net worth and made him the first trillionaire in history. This milestone is significant not just for Musk's business empire but for the increasing impact of technology entrepreneurs.
Musk's net worth is likely to surpass $1.1 trillion after it starts trading, according to Reuters calculations based on company filings and Forbes estimates. Much of this surge has been fuelled by the company's $75 billion initial public offering (IPO).
Musk's fortune is estimated at $971 billion by Bloomberg Billionaires Index data before the SpaceX listing. The net worth difference between Musk and other billionaires is stark: In comparison, Alphabet co-founder Larry Page, the world's second-richest man, was estimated to be worth around $304 billion.
SpaceX is now the largest contributor to Musk’s fortune. His holdings in the aerospace company, after the IPO, are estimated to be worth nearly $866 billion by Forbes. When you add in the value of his investments in Tesla and other companies, Musk's wealth reaches unprecedented territory.
This is the level of wealth that would rival the GDP of some national economies. The estimates from the International Monetary Fund (IMF) have Taiwan's gross domestic product (GDP) at around $976.7 billion. This means Musk’s fortune exceeds the economy of one of the world's biggest semiconductor hubs. His wealth also represents about one-fourth of India's GDP, estimated by the IMF at $4.15 trillion.
"The second richest person has been hovering around $300 billion, so about less than one-third of what Musk could potentially be worth tomorrow," Matt Durot, deputy editor at Forbes Wealth, told Reuters.
"And only one other person, (Oracle founder) Larry Ellison, has ever been worth $400 billion," he added.
Analysts think the valuation is driven by Musk's reputation for leadership and vision, which investors call the "Elon premium”.
“SpaceX is similar to Tesla, a bet on Elon Musk”, Renaissance Capital’s Matt Kennedy said to Reuters.
"A market cap of $1.5 trillion-$2 trillion would certainly throw all traditional valuation methodologies out the window and is instead best characterised as the 'Elon Musk premium'," Kennedy added.
Musk is seen by his supporters as a transformative entrepreneur, driving change across industries, from electric vehicles to space exploration, while critics remain concerned about the concentration of wealth and corporate influence.
Despite all the controversy, this is an unprecedented financial achievement for Musk. He has been driving innovation in the internet business since the 1990s and leading companies such as Tesla, SpaceX, Neuralink, and X. Musk has redefined the scale of personal wealth in the 21st century.
Also Read: SpaceX IPO Could Mint 4,400 Employee Millionaires, Report Suggests
