Musk's net worth hits record $1.3 trillion
What's the story
Elon Musk's net worth has skyrocketed to a record-breaking $1.3 trillion after SpaceX shares surged nearly 20% in the company's first full trading session post its blockbuster initial public offering (IPO). The surge in SpaceX shares further solidified Musk's position as the world's richest person. The billionaire entrepreneur became the world's first trillionaire following SpaceX's market debut last week, when his fortune crossed the $1 trillion mark for the first time.
Market performance
Musk's wealth soars by $165 billion in a day
SpaceX shares jumped over 19.5% to close above $192, building on the strong momentum from Friday's debut when they rose some 19%. Tesla, another major contributor to Musk's wealth, also saw its shares rise by 1.2% during the session. The rally added an estimated $164.8 billion to Musk's fortune in a single day, taking his net worth to a record $1.3 trillion. He is nearly $1 trillion ahead of the world's second-richest person, Google co-founder Larry Page ($301.4 billion).
Stake value
SpaceX shares drive Musk's wealth surge
Musk's massive fortune is largely tied to his holdings in SpaceX. He owns some 4.8 billion shares in the aerospace company, along with some 350 million stock options at an exercise price of $8.4 per share. Together, these holdings give him a roughly 38% stake in the company. The sharp rise in SpaceX's share price has significantly boosted the value of those holdings, making it the primary driver behind Musk's latest wealth gain.
Fundraising success
SpaceX raises $86 billion in blockbuster IPO
SpaceX raised a whopping $85.7 billion through its IPO after underwriters exercised an option to buy an additional 83.3 million shares due to strong investor demand. The company had initially raised some $75 billion through the offering. Market estimates suggest total investor demand exceeded $350 billion, including roughly $100 billion from retail investors and about $250 billion from institutional buyers.