Elon Musk becomes world's first trillionaire

Elon Musk becomes world's first trillionaire

Elon Musk officially became the world's first trillionaire following SpaceX's stock debut on Friday, with the company's IPO price valuing his stake at nearly $870 billion on paper.

The stock opened at $150 a share and ended up over 19%, closing at $160.95 in its debut on the Nasdaq (^IXIC), trading under the ticker SPCX (SPCX).

Musk holds approximately 42% of SpaceX's equity through a dual-class share structure that grants him roughly 82% of voting control via Class B stock. With shares around $158 in midday trading, his equity stake is valued at $869.4 billion.

Musk holds approximately 717 million Tesla (TSLA) shares, not including vested stock options, according to the most recent regulatory filings — a position that, at the electric carmaker's current price of roughly $388 per share, is worth approximately $278.2 billion.

Read more: SpaceX IPO: How to buy the stock

Add the two together — $866.5 billion from SpaceX and roughly $286.8 billion from Tesla — and Musk's stakes in those two companies alone total approximately $1.147 trillion, not including his stakes in Neuralink, the Boring Company, and other investments and assets he may have.

SpaceX has grown rapidly on the back of Starlink, its satellite internet service, which now serves millions of paying subscribers globally and generates the majority of the company's revenue.

SpaceX has continued to post annual losses as it invests in Starship, its next-generation heavy-lift rocket, and with its AI holdings from its merger with Musk's xAI. Capital expenditures have surged over the past year, as xAI spends heavily on data centers like Colossus and Colossus II.

But investors appear to be looking past red flags like cash burn and corporate governance issues like a dual-class stock structure, with Musk's vision in the forefront — and a big payoff for him on the way.

The public debut of Elon Musk's rocket and AI company is expected to make history.

Pras Subramanian is Lead Transportation Reporter for Yahoo Finance. You can follow him on X and on Instagram.

Click here for the latest technology news that will impact the stock market

Read the latest financial and business news from Yahoo Finance