SpaceX’s initial public offering hit the market today, with shares priced at $135. The stock closed at $160.95, up 19% on the day’s trading. So as of this evening, the company’s market capitalization is $2.1 trillion, making it the sixth-most valuable company in the U.S.
Elon Musk, who owns 46%, is, on paper, the world’s first trillionaire. But a lot of other SpaceX employees became wealthy overnight. For example, a welder named Juan Hernandez, who formerly worked at SpaceX, is now a millionaire.
Does any of this make any sense? SpaceX has several lines of business: It makes rockets and space craft under contract to the Department of Defense and others. It operates Stalink, a global network of communications satellites. It owns vertically integrated artificial intelligence properties, including Grok and both land-based and (prospectively) space-based data centers. It owns Twitter/X. And Musk has big plans for the future: at the company’s Texas headquarters this morning, Musk said: “Whoever you are watching this, SpaceX wants to be able to take you to the moon, take you to Mars and ultimately beyond.”
It is hard to imagine how all of this will justify $2 trillion in value any time soon, but investors are largely betting on Elon to create value in ways that have never been seen before. I had an opportunity to buy a few shares this morning, and passed on it. But if the share price drops by 50% in the next six months, which could well happen, I will take a (very small) plunge. Because, who wants to bet against Elon Musk?
One thing we can say for sure: liberals will be outraged at the idea of Musk being a trillionaire. Jimmy Kimmel has already accused Musk of “stealing” the money, from whom I have no idea. I suppose Kimmel is taking the broad view: property is theft. Not counting his own, of course.
Democrats are already hinting that someone should assassinate Musk. I think this IPO puts him at the top of the liberal hit list, along with President Trump. I hope his security will be up to the task.
