Elon Musk is on the verge of becoming the world's first trillionaire as his spaceflight company, SpaceX, prepares for an initial public offering (IPO) this month. The IPO is expected to be the largest stock market debut in history.
SpaceX IPO Details
SpaceX is seeking to raise up to $75 billion by selling 555.6 million shares at $135 each. This would give the company a market valuation of $1.77 trillion. According to the amended prospectus, Musk's voting power will primarily come from his ownership of 5.22 billion Class B shares, which carry 10 votes per share. Following the offering, Musk would hold 82.4 percent of the company's voting power.
Impact on Musk's Net Worth
Forbes currently estimates Musk's net worth at $826 billion, with his stake in SpaceX valued at $542 billion. A $1.77 trillion valuation would boost his net worth by $223 billion, making him a trillionaire. This milestone would mark the first time an individual has achieved a net worth exceeding $1 trillion.
Financial Performance
Despite the blockbuster ambitions, SpaceX continues to operate at a loss. The filing shows the company lost $2.6 billion from operations last year on $18.7 billion in revenue, with losses continuing into this year. The IPO proceeds are expected to fund expansion of infrastructure for its artificial intelligence and rocket businesses, as well as to expand its Starlink satellite constellation.
Long-Term Vision
The IPO document outlines Musk's long-term vision, which includes plans to use proceeds to help return humans to the moon and eventually establish a colony on Mars. A permanent human colony on the red planet with at least one million inhabitants is cited as a necessity as existential threats could consign humanity to the same fate as the dinosaurs.
Market Expectations
Dan Ives of Wedbush Securities wrote in a research note that he expects Tesla and SpaceX to merge next year. SpaceX plans to list on the Nasdaq under the symbol SPCX and could begin trading as soon as the end of next week.
