Tech mogul Elon Musk became the world’s first trillionaire on Friday. The billionaire entrepreneur reached that milestone when shares of his rocket company SpaceX began trading on the stock market, opening at $150. This massive surge signals a new era of ultra-affluence and highlights a growing gap in global wealth inequality. SpaceX shares ended up rising 20 percent from their initial public offering price of $135, closing the day at $161.11.
Consequently, the first trillionaire net worth calculation for Elon Musk stood at around $1.2 trillion. This vast sum comprises his stock in SpaceX and his electric carmaker, Tesla. It also includes ownership stakes in other ventures, such as the brain implant company Neuralink and the tunneling firm the Boring Company.
SpaceX Stock Market IPO Drives Massive Fortune
The 54-year-old executive was already holding the title of the world’s richest person. Elon Musk claimed that title from the Amazon founder Jeff Bezos in January 2021, after Tesla’s shares surged to take his net worth past $185 billion. Since then, the South African-born entrepreneur’s fortune has more than quintupled in a five-and-a-half year period. During this time, he bought the social media company Twitter and founded an A.I. start-up. He then fused them with SpaceX and took the conglomerate public. In that time, Elon Musk also spent more than $250 million to help elect Donald J. Trump and advised the president.
And the wealth-making has only accelerated, cementing his influence over society, culture and global politics. Since October, his net worth has doubled. This rapid accumulation largely comes down to the appreciation of his nearly 50 percent stake in SpaceX, which is worth more than $1 trillion. During its SpaceX stock market IPO, the company sold more than 555 million shares. This sale valued the firm at $1.77 trillion, up from a $400 billion valuation on the private market last summer. Starting in January, SpaceX also granted Elon Musk pay packages totaling 1.3 billion shares. He cannot sell these shares until he hits certain operational milestones.
Trillion-Dollar Milestone Widens Economic Divide
“The fact is that wealth for some and wealth inequality is growing in dimensions that we’ve never seen before,” said Steven Durlauf, the director of the Stone Center for Research on Wealth Inequality and Mobility at the University of Chicago. When the oil tycoon John D. Rockefeller’s fortune was at its height in 1937, his $1.4 billion net worth amounted to about 1.5 percent of U.S. gross domestic product, Mr. Durlauf said. The total wealth controlled by Elon Musk is now equivalent to more than 3 percent of U.S. gross domestic product.
Such wealth is so extraordinary that it can be hard to make meaningful comparisons. The median American household had a net worth of just under $200,000 in 2022, the year with the most recent data available from the Federal Reserve. That means the wealth belonging to Elon Musk is five million times as large as that of the typical family’s. His wealth dwarfs even that of the everyday wealthy. The top 10 percent of households by income had an average net worth of $6.5 million in 2022, less than .001 percent of the SpaceX leader’s total. The world’s second richest person, the Google co-founder Larry Page, is worth around $304 billion, according to the Bloomberg Billionaires Index.
Global Wealth Inequality Reaches Unprecedented Heights
Inequality is notoriously difficult to measure, but the explosion of wealth at the top is hard to dispute. The net worth of the middle 40 percent of households, adjusted for inflation, has risen slightly more than 50 percent over the past decade, according to data from the French economists Emmanuel Saez and Gabriel Zucman. The top 1 percent have seen similar gains. But the richest .001 percent have seen their wealth roughly double over the same period.
Beyond the historic first trillionaire net worth milestone, the ultrawealthy have also experienced significant increases in their fortunes. In 2016, a net worth of $100 billion — a mark that Elon Musk crossed about six years ago — would have easily placed someone at the top of the Forbes Billionaires list. Today, $100 billion would rank them as the 20th richest person in the world.
“Christ, when I was a kid, we only talked about millionaires,” said Bernie Sanders, 84, the progressive senator from Vermont. “If this isn’t an example of oligarchy, I don’t know what is.”
The Future Target: $10 Trillion or Bust
The tech leader did not respond to a request for comment. But Elon Musk has previously acknowledged the trillionaire milestone. In February, he replied to a post on X about possible trillionaire status by noting that he had created significant wealth for shareholders and held less than 0.1 percent of his net worth in cash. In May, he responded on X to the financial musings of Peter Diamandis, a friend and SpaceX investor, saying he would reach “$10T or bust.”
He has also recently said that “money won’t matter” in the future because Tesla and SpaceX would develop robotics, A.I. and rockets so powerful that no human would ever have to work again. In his utopian world of “amazing abundance,” everyone would have “universal high income,” he has said.
Allies argue his massive net worth is justified by his cultural and industrial impact, providing an example and incentive for those who want to build successful companies. Mr. Diamandis, the head of the XPrize Foundation, an organisation that holds contests to encourage scientific breakthroughs, said Tesla and SpaceX were “raising the floor.”
“The fruits of his labor are making him into a trillionaire, and they’re uplifting humanity,” Mr. Diamandis said.
A Means to an End or Unchecked Political Power?
Adeo Ressi, the college roommate of Elon Musk at the University of Pennsylvania, said the SpaceX chief never cared as much about financial gain as obtaining resources to help him achieve his entrepreneurial goals. For him, “money is a means to an end,” Mr. Ressi said, comparing his friend’s mind-set to a gamer accumulating coins in a video game to beat a level.
“He’s amassing resources to do things, and the thing he wants to do most is colonise Mars,” Mr. Ressi said. “That’s a really big driving force behind his wealth accumulation.” He added that Elon Musk was “not a poster child of wealth inequality” and pointed to the tech leader’s lifestyle, in which he is known to work around the clock and avoid the typical trappings of the rich, like islands and megayachts.
“It’s not like he’s planning to leave this in a massive family trust,” Mr. Ressi said. “It’s literally going to be used to make humanity into a multiplanetary species.”
But critics say the way he chooses to lead his life is beside the point. His net worth has already provided him with the means to personally acquire companies and spend hundreds of millions of dollars to help elect a preferred presidential candidate, Mr. Durlauf of the University of Chicago said. The financial ascent of Elon Musk will only magnify how “economic inequalities are spilling over into the political domain,” he added.
Mr. Sanders called the situation “a moral travesty,” noting that 60 percent of Americans live paycheck to paycheck. The senator also agreed with the assessment that the tech mogul was probably not as interested in owning islands or yachts. The new trillionaire, in his view, was interested in just one thing.
“This guy is into power,” Mr. Sanders said. “And he is now the most powerful person on Earth.”
