Elon Musk has become the first individual in history to reach a net worth of $1 trillion, following the initial public offering (IPO) of SpaceX in U.S. markets on Friday. The company sold $75 billion in shares, immediately valuing it at $1.77 trillion, according to Reuters. With shares opening at $150 apiece. Musk’s stake in SpaceX is worth more than $766 billion, and when combined with his Tesla holdings, his total net worth is around $1.05 trillion, according to CNBC.

Record-Breaking Valuation and Investor Appetite

The IPO was oversubscribed four times higher than expected, according to Reuters. Institutional investors allocated to the offering included a significant proportion of long-only investments and sovereign wealth funds, with 70% of institutional shares reportedly going to such strategies, according to Bloomberg News. Saudi Arabia and Kuwait were among the countries whose funds participated.

SpaceX’s valuation of $1.75 trillion,reaching as high as $2 trillion shortly after trading began—surpasses the $29.4 billion raised by Saudi Aramco in its 2019 IPO — the company’s valuation is now 80 to 95 times its trailing revenue, according to TradingView. This multiple makes it particularly sensitive to shifts in global liquidity and interest rates, raising concerns among analysts.

Market Reactions and Strategic Implications

Shares of SpaceX were trading at around $164, or 20% higher, shortly after the official debut, according to CNBC, but However, shares of Tesla, another major component of Musk’s fortune, fell about 1% to $395 apiece on the same day.

Exchanges and trading firms are keen to avoid the technical glitches that affected Meta’s 2012 IPO, according to Al Jazeera. With SpaceX seen as a test for a new generation of mega-listings, market participants are closely watching for signals on investor appetite ahead of upcoming IPOs from AI firms like Anthropic and OpenAI.

For Gulf investors. The significance of the IPO goes beyond Musk’s space venture, SpaceX is positioned at the intersection of AI, satellite connectivity, and computing infrastructure,sectors of strategic interest to Gulf countries. Qatar Investment Authority and Abu Dhabi-based MGX participated in xAI’s funding rounds before its acquisition by SpaceX, while Saudi Arabia’s Public Investment Fund was reportedly exploring becoming an anchor investor in the IPO, according to TradingView.

Controversies and Concerns

Protesters gathered outside the Nasdaq MarketSite in New York on Thursday to voice concerns over SpaceX’s practices. The xAI subsidiary, Grok, has been accused of allowing users to create non-consensual deepfake sexualized images, according to Al Jazeera. The IPO’s timing has intensified debates about wealth inequality and the growing power of tech billionaires.

Samuel Kerr, global head of equity capital markets at Mergermarket, said he expects the stock to open with a significant pop,perhaps north of 20%,due to the hype around the deal. “Anything lower would actually make me nervous,” he added. Meanwhile, analysts are cautious about the company’s valuation, noting that rising U.S. Treasury yields and inflationary pressures could prompt investors to re-evaluate the high multiples attached to long-duration growth assets.

SpaceX President Gwynne Shotwell and Chief Financial Officer Bret Johnsen rang the opening bell at Nasdaq MarketSite in New York at 9:30 a.m. local time, marking the official start of trading. The IPO not only elevated Musk to trillionaire status but also created thousands of new millionaires and several billionaires among SpaceX employees and executives who own stock, according to CNBC.