Elon Musk photographed at SpaceX in Brownsville, Texas.
Marvin Joseph | Washington Post | Getty Images
The world’s richest man is on the verge of becoming a billionaire.
SpaceX CEO Elon Musk owns $866.5 billion worth of shares in the reusable rocket maker on paper, according to the company’s latest IPO prospectus released Wednesday. SpaceX said it plans to price its upcoming IPO at $135 per share, valuing it at about $1.77 trillion.
For Musk, 54, the SpaceX proposal scheduled for next week comes 16 years after he took office. tesla public. He currently owns about $355 billion worth of stock in the electric car maker and has options that could add more than $100 billion to that number.
Musk will have more than 82% voting control in SpaceX after it goes public, according to Wednesday’s filing. However, you must hold all your shares for one year.
“We believe that Mr. Musk’s substantial ownership interest in our company provides him with a financial incentive to support our success,” SpaceX said in the risk factors section of its prospectus. After the 366-day lock-up period, “Mr. Musk will have no obligation to maintain any ownership interest in the Company and may elect at any time thereafter to sell all or a substantial portion of his ownership interest in the Company or otherwise reduce his ownership interest in the Company,” the filing states.
Musk’s net worth has been steadily increasing for more than a decade, and Tesla stock began to rise significantly in 2013. Musk became the world’s richest person for the first time in 2021; Amazon Founder Jeff Bezos. However, Tesla’s stock price fell 65% in 2022, only to rise again to new highs in the following years.
Forbes currently lists Musk’s net worth at $826 billion, which is much higher. google Co-founder Larry Page ranks second with just under $300 billion.
Assuming SpaceX lists on the Nasdaq next week at or near its expected valuation, Mr. Musk will oversee two of the eight most valuable U.S. companies. SpaceX will be ahead of Tesla meta Among the trillion dollar names.
But based on revenue, SpaceX dwarfs those giants. Last year, SpaceX had revenue of $18.67 billion. Meanwhile, Meta’s sales exceeded $200 billion, while Tesla’s sales were nearly $95 billion.
Some investors have recently speculated that Musk’s ultimate plan may be to merge SpaceX and Tesla as a way to combine artificial intelligence resources and streamline future financing. He offers lucrative financial incentives to each company, including some outlandish benchmarks.
SpaceX is tying Musk’s pay to two milestones: reaching a market capitalization of $7.5 trillion and colonizing Mars, home to at least 1 million people. Meanwhile, Tesla shareholders late last year approved a compensation plan comprised of 12 tranches, with each dividend tied to market capitalization growth and operating performance.
—CNBC’s Lora Kolodny contributed to this report
WATCH: SpaceX aims to price IPO at $135 per share
