SpaceX IPO could make Elon Musk first trillionaire

A May 20 prospectus from SpaceX, Elon Musk’s US rocket and AI company, shows he holds about 5.1 billion shares and roughly 350 million options.

The holdings could make him on track to become the world’s first trillionaire if its expected June 11 IPO values the company at up to US$2 trillion.

Musk’s net worth would reach about US$1.1 trillion depending on SpaceX’s IPO valuation and his other holdings, including Tesla.

The filing also outlined performance awards that could give Musk more stock if SpaceX reaches valuation milestones.

Additional targets include building non-Earth data centers, and establishes a permanent Mars colony of at least 1 million people.

🔗 Source: Bloomberg

🧠 Food for thought

Implications, context, and why it matters.

Elon Musk’s grip on SpaceX goes beyond his stake. Before any IPO, he holds 85.1% of the company’s voting power 1.
That control lets him chase stretch targets. One award releases 1 billion restricted shares only if SpaceX reaches a US$7.5 trillion market capitalization and builds a permanent Mars colony with at least 1 million people 1.
Another award for 302.1 million restricted shares depends on a US$6.565 trillion market capitalization plus non-Earth data centers that can deliver 100 terawatts of computing power per year, tying SpaceX to the race to build AI computing capacity 1.

A listing between US$1.75 trillion and US$2 trillion would be so large that index providers, the companies that decide which stocks go into major market indexes, are reportedly adjusting their rules for a company that large 2.
If SpaceX joins the S&P 500, a widely followed US stock market index, it could take nearly a 2% weight and drive US$300 billion to US$400 billion of buying from passive funds that automatically track indexes 3.
That wave of buying could meet a rush of selling from early investors when post-IPO lock-up periods, which limit insider sales for a set time after listing, expire around the same time as any index addition 3.
Data from 15 large tech IPOs found that investors who sold before lock-up expirations captured average peak gains of 132%, while those who held reached 26% on average 3.