SpaceX's record initial public offering has pushed Elon Musk into a financial tier no one has reached before, with Reuters reporting that the deal made him the world's first trillionaire. The rocket, satellite and artificial intelligence company raised $75 billion, underscoring Wall Street's continued appetite for Musk's businesses and the future they promise.
In a much-anticipated opening day, SpaceX went public and began trading Friday at just above $150 a share after pricing its IPO at $135, according to CNN. The rocket and AI company's opening price marked a sharp first-day jump and set off a fast rise in its valuation.
Subscribe to Chicago Star's Weekly City Buzz Newsletter
The company sold 556 million shares Thursday in what it called the biggest IPO in history, CNN confirmed. SpaceX's final offering valued the company at $1.77 trillion, before shares moved higher in trading Friday.
SpaceX executives rang the Nasdaq opening bell from Texas, and the stock later climbed to around $165 a share, according to Forbes. That put the company's market value above $2 trillion and lifted Elon Musk's net worth past $1 trillion, Forbes noted.
Retail demand drives the debut
Retail investors were a key part of the offering. According to CNN, customers at Charles Schwab, Fidelity, SoFi, E*TRADE and Robinhood were able to request shares, and eligible clients received at least part of what they asked for.
Analysts expected a volatile first day of trading, with shares surging soon after the opening and the broader market moving higher at the same time, CNN added.
Photo by Wikimedia Commons
Record deal lifts Musk's fortune
Before the share sale, Forbes valued Musk's net worth at about $780 billion, far ahead of the next richest person, Reuters confirmed. Much of that fortune is tied to SpaceX, where Musk holds a stake worth roughly $866 billion. Tesla and his other holdings add to that total, while investors continue to bet that his companies can reshape both transportation and space travel.
Read more on Chicago Star
Photo by Wikimedia Commobs
Power, praise and scrutiny
Musk has become one of the most recognizable business figures in popular culture, but his rise has also drawn criticism over governance, conflicts of interest and his political activity. Reuters reported that his move into politics, including his role in President Donald Trump's Department of Government Efficiency, came as Tesla sales weakened in some foreign markets amid protests and boycotts.
He first became a household name through Tesla and SpaceX, then expanded his reach with the $44 billion purchase of Twitter in 2022, giving him a direct line to hundreds of millions of users, Reuters noted. That platform helped make him a louder voice on politics, immigration, government spending and free speech.
Supporters say Musk's track record explains the market's faith in him. “He renewed the world's respect for American ingenuity in automotive engineering,†said Bob Lutz, former General Motors vice chairman, according to Reuters.
Others see a concentration of power around one entrepreneur. Matt Kennedy, a senior strategist at Renaissance Capital, said, per Reuters, “Much like Tesla, SpaceX is a bet on Elon Musk,†and described the valuation as the “Elon Musk premium.â€
