SpaceX Makes History with Largest Stock Market Debut, Elon Musk Becomes World's First Trillionaire

The Record-Breaking IPO

SpaceX made the biggest stock market debut in history on Friday after nearly two and a half decades as a private company. Public trading began around midday with a starting share price of $150, which quickly jumped by a double-digit percentage and sent the company’s valuation above $2tn, where it remained through market close.

Elon Musk's Trillionaire Status

The company’s initial public offering made the company’s CEO, Elon Musk, the world’s first trillionaire. Musk has a large stake in the company as majority shareholder, so as investors’ enthusiasm validated the eye-popping valuation during Friday trading, he took title of the world’s first-ever trillionaire, with Forbes estimating his net worth at $1.1tn at the end of trading.

The Financial Impact

SpaceX kicked off public trading at $150 a share, well above its pre-open price of $135. Throughout the company’s first day of trading, SpaceX saw its stock pop, reaching a high of $176 per share. At market close, the company’s shares traded at $160, up more than 19% from the initial price – putting SpaceX’s valuation at a historic $2.1tn.

The Future Outlook

SpaceX’s IPO comes in what is predicted to be a banner year for public offerings of artificial intelligence companies, a group the rocket maker is part of as the acquirer of Musk’s AI startup, xAI. Rivals OpenAI and Anthropic have also filed to go public sometime this year and are predicted to raise record sums at valuations near $1tn, which would orient the US stock market heavily towards AI companies.

The Impact on Employees and Investors

For SpaceX employees, however, the record-shattering valuation means they are about to get a lot richer. More than 4,400 current and former employees are expected to become millionaires with the IPO, according to the New York Times, with 400 of them each securing $100m or more.