Tesla Inc (NASDAQ:TSLA) and SpaceX (NASDAQ:SPCX) CEO Elon Musk recently became the world’s first trillionaire. While some investors and fans of the entrepreneur are happy for the milestone, others have increased calls for Musk to pay more in taxes or support philanthropic efforts.
Here’s what Benzinga viewers said.
Musk the Trillionaire
With the SpaceX IPO, Musk became a trillionaire and at one point was worth $1.45 trillion. With SpaceX stock falling in value since its highly anticipated IPO, Musk is now worth an estimated $1.08 trillion by Bloomberg and $1.1 trillion by Forbes.
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Musk is worth hundreds of billions of dollars more than the next richest person in the world and could see his wealth quickly rise in the coming years with massive pay packages from both Tesla and SpaceX that could award hundreds of billions of dollars based on performance milestones at the respective companies.
Benzinga recently asked its viewers of its "PreMarket Playbook" what they think of Musk’s newly obtained trillionaire title and if he should be doing more to help out with world philanthropy efforts like world health and hunger.
"Now that Elon Musk is a trillionaire after SpaceX’s IPO, should he give away more of his wealth?" Benzinga asked viewers.
The results were:
- No, it’s his money: 40%
- Yes, donate to hunger & health: 33%
- Yes, sign the Giving Pledge: 14%
- No, His companies do enough good: 13%
The results show that the leading vote getter was that Musk should feel fine and be able to keep his wealth. The next leading vote was that Musk should donate to help hunger and health efforts.
Lower down the rankings was Musk signing the Giving Pledge, an effort launched by Bill Gates and Warren Buffett for the ultra-rich to pledge to give away 50% or more of their wealth while alive or after their death.
In last place was that Musk has done enough good with his companies. A believer in equity for employees, many long-time Tesla and SpaceX employees have become millionaires over the years thanks to the growing value of the companies they work for.
SpaceX’s recent IPO turned workers such as welders and cafeteria workers that has loyalty to the company over the years into millionaires.
Even though it’s Musk’s money got the most votes, a near majority of 47% picked the two choices (donate; Giving Pledge) that Musk needs to do more philanthropically.
Adding up the results, the poll was mostly split 50/50 on whether Musk should be able to just keep his rising net worth or do more to support others.
Billionaires such as Buffett and Gates have seen their net worths drop in recent years as they donate more money to philanthropic causes. Musk, on the other hand, has watched his net worth soar, with rising values for his companies and money kept mostly to himself.
Sen. Elizabeth Warren is among the elected officials who have increased calls for Musk to be taxed more to help support others.
Benzinga Viewers Not Convinced in SpaceX Valuation
Benzinga has been polling its "PreMarket Playbook" viewers about SpaceX in recent weeks. Another poll asked about the valuation of SpaceX 10 years from now.
“The year is 2036. Ten years from now, the valuation of SpaceX fits in which of the following ranges?” Benzinga asked viewers of the “PreMarket Playbook” show on Tuesday, June 9. Here are the results:
- $2 trillion to $5 trillion: 36%
- Less than $2 trillion: 25%
- $5.01 trillion to $10 trillion: 23%
- More than $10.01 trillion: 16%
The latest poll of the Benzinga viewers found that 61% of the audience sees SpaceX valued at $5 trillion or less over the next 10 years. Only 16% see SpaceX valued above $10 trillion in 2036, which doesn’t align with the latest comments from billionaire investor Ron Baron.
Benzinga previously asked viewers of “PreMarket Playbook” about the valuation of the space company at IPO.
"What is the highest valuation you would buy SpaceX shares at during the IPO or first few days of trading?" Benzinga asked.
The results are:
- $1.75 trillion: 19%
- $2 trillion: 19%
- $2.25 trillion: 13%
- Not buying above $1.75 trillion: 49%
The poll found that a $1.75 trillion valuation may be the sweet spot for the IPO pricing. Nearly half of Benzinga viewers said they would not buy SpaceX shares above a $1.75 trillion valuation at IPO or in the first few trading days.
Of the three price ranges, 19% said they would buy shares if SpaceX’s highest valuation was $2 trillion, and 19% said they would buy shares if SpaceX’s highest valuation was $1.75 trillion.
Today, SpaceX is valued at around $2 trillion, falling from its IPO highs that had the company valued as high as nearly $3 trillion.
“PreMarket Playbook” airs on YouTube Monday through Friday at 8 a.m. ET. The show is hosted by Ryan Faloona.
Photo courtesy: IAB Studio on Shutterstock.com
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