Elon Musk, chief executive officer (CEO) of Tesla, has become the world’s first trillionaire after the successful initial public offering (IPO) of SpaceX.
According to Bloomberg on Friday, Musk’s net worth climbed to $1 trillion on Friday, from $707 billion on Wednesday.
On Thursday, Reuters said SpaceX, an aerospace manufacturer, set a price of $135 per share for its IPO, resulting in a $75 billion capital raise on the sale of 555.56 million shares, and putting the company’s value at $1.77 trillion.
Adam Sarhan, chief executive of 50 Park Investments in New York, told the publication that the real test for SpaceX will be how the market digests the IPO over the next several weeks, not just one day.
“The pricing came in just about right – not too hot, not too cold. Clearly, retail investors are buying, and at this stage, they are a big component of this. We need to see follow-through after the first day of trading,” he added.
According to Reuters, the IPO is the largest in the world, exceeding the record set by state-run oil giant Saudi Aramco in December 2019, when it raised $25.6 billion on Riyadh’s exchange.
Although SpaceX’s share debuted on Nasdaq at $150 per share, surpassing the $135 pre-opening price, it also traded as high as $176 during trading, with the lowest share value being the price set by the company.
