Tesla Inc. (NASDAQ:TSLA) Elon Musk officially became the world’s first trillionaire on Friday after SpaceX’s (NASDAQ:SPCX) highly anticipated public debut boosted the value of his holdings and reignited a debate over wealth inequality and taxes on the ultra-rich.
SpaceX IPO Pushes Elon Musk’s Net Worth Above $1 Trillion
SpaceX began trading at an initial public offering price of $135 per share before opening at $150, lifting the company’s valuation to nearly $2 trillion and propelling Musk’s estimated net worth to about $1.1 trillion.
The bulk of Musk’s fortune stems from his roughly 38% stake in SpaceX, valued at approximately $765 billion. His holdings in Tesla account for another $276 billion, while additional wealth comes from ventures including Neuralink and The Boring Company.
Democrats Renew Calls For Wealth Tax After Musk’s Trillionaire Milestone
Musk’s historic wealth milestone quickly drew criticism from prominent Democratic lawmakers and political leaders, who argued it underscores growing economic inequality in the United States.
California Gov. Gavin Newsom (D-Calif.) wrote on X that Americans are struggling with the rising cost of everyday necessities. At the same time, Musk’s fortune continues to grow, adding that “the system is rigged.”
Sen. Bernie Sanders (I-Vt.) focused on Social Security taxes, arguing that a trillionaire should not face the same taxable earnings cap as workers making $184,500 annually.
“Today, Elon Musk, a trillionaire, pays the same amount into Social Security as someone making $184,500,” Sanders said, while promoting legislation that would lift the cap on taxable income to strengthen the program.
Rep. Alexandria Ocasio-Cortez (D-N.Y.) also weighed in, criticizing opposition to higher taxes on the wealthy while many Americans continue to face rising health care costs.
Sen. Elizabeth Warren (D-Mass.) renewed her push for a wealth tax, noting that the typical American household would need more than 11 million years to accumulate wealth comparable to Musk’s fortune.
New York City Mayor Zohran Mamdani also took to X and said, “Reason #1,000,000,000,000 why we should tax the rich.”
Price Action: SpaceX shares closed at $160.95 on Friday, up 19.22% for the day and climbed another 3.67% to $166.85 in after-hours trading, according to Benzinga Pro.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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