Elon Musk has become the world's first trillionaire following the blockbuster initial public offering of SpaceX, a milestone that further cements his status as one of the most influential and closely watched business figures of the modern era, as reported by Reuters .
According to Reuters, the landmark achievement reflects not only the soaring valuation of his companies but also investor confidence in his long-term vision across sectors ranging from electric vehicles and space exploration to artificial intelligence and social media.
Few entrepreneurs have become as deeply embedded in popular culture as Musk. While public sentiment toward the ultra-wealthy has grown increasingly critical amid rising concerns over inequality, Reuters reported that Musk has maintained a loyal global following despite his immense wealth and often controversial public persona.
Supporters see his unfiltered communication style and ambitious goals as part of his appeal, while critics have accused him of exercising outsized influence, raised governance concerns at his companies, and questioned his increasingly visible role in politics and public debate.
At the centre of Musk’s business empire are SpaceX and Tesla. According to Reuters, SpaceX—the rocket, satellite, and artificial intelligence company founded by Musk—raised a record US$75 billion (NZ$129 billion) through its initial public offering on Thursday, underscoring extraordinary investor enthusiasm for the company and its future prospects.
Before the IPO, Forbes estimated Musk’s net worth at approximately US$780 billion (NZ$1.34 trillion), already placing him far ahead of other billionaires. Reuters noted that Alphabet co-founder Larry Page ranked as the next wealthiest individual, but with a significantly smaller fortune.
"The second richest person has been hovering around US$300b (NZ$516b), so about less than one-third of what Musk can potentially be worth tomorrow," said Matt Durot, deputy editor at Forbes Wealth. "And only one other person, (Oracle founder) Larry Ellison, has ever been worth US$400b (NZ$688b)."
Most of Musk’s wealth is now tied to SpaceX, where he holds a stake valued at approximately US$866 billion (NZ$1.49 trillion). Combined with his holdings in Tesla and several other ventures, Reuters calculations based on company filings indicate that Musk’s net worth could exceed US$1.1 trillion (NZ$1.89 trillion) once SpaceX shares begin trading.
Musk first gained global recognition through Tesla and SpaceX before expanding his influence further with the US$44 billion acquisition of social media platform Twitter in 2022. Reuters reported that the purchase gave him direct access to hundreds of millions of users and transformed him into one of the most prominent voices in discussions surrounding politics, immigration, government spending, and free speech.
His growing involvement in politics has generated both support and criticism. Reuters noted that his participation in US President Donald Trump's Department of Government Efficiency (DOGE) became one of the most debated chapters of his career. The political controversy coincided with declining Tesla sales in several international markets during 2025, as protests and consumer boycotts targeted the electric vehicle manufacturer.
The ‘Elon Premium’
Musk, now 54, was born in Pretoria, South Africa, to a Canadian mother and a South African father. He later attended the University of Pennsylvania, graduating in 1997 before embarking on a business career that would eventually reshape multiple industries.
According to Reuters, Musk assumed leadership of Tesla in 2008 with the belief that electric vehicles could combine cutting-edge software with high-performance engineering. His vision helped transform Tesla into the world’s most valuable automaker and accelerated the global shift toward electric mobility.
Industry observers argue that Tesla’s success encouraged traditional automakers to accelerate their own electric vehicle programmes after years of scepticism regarding the viability of large-scale EV production.
Investors are now betting that Musk can achieve similar breakthroughs in the fields of space exploration and artificial intelligence. However, Reuters reported that SpaceX remains a capital-intensive company, and much of its valuation depends on technologies that may require years or even decades before achieving full commercial maturity.
Beyond Tesla and SpaceX, Musk has co-founded five additional companies, including infrastructure venture The Boring Company and neural technology startup Neuralink.
As Tesla’s chief executive, Musk has attracted both praise and controversy. He is widely credited with building Tesla into a dominant force in the automotive industry, even as established manufacturers initially dismissed the company’s prospects.
"He renewed the world's respect for American ingenuity in automotive engineering," said Bob Lutz, a former General Motors vice chairman.
At the same time, Tesla has faced legal disputes and investor scrutiny, particularly regarding Musk’s 2018 compensation package, which at one point was valued at US$56 billion (NZ$96.3 billion).
Reuters reported that Musk’s influence has become so extensive that market observers have coined the term "Muskonomy" to describe the network of businesses connected to him. The concept has also given rise to what investors often call the "Elon premium"—the additional value assigned to companies based largely on confidence in Musk’s leadership and vision.
"Much like Tesla, SpaceX is a bet on Elon Musk," said Matt Kennedy, senior strategist at Renaissance Capital, a provider of IPO-focused research and ETFs.
"A market cap of US$1.5t-US$2t (NZ$2.58t-NZ$3.44t) would certainly throw all traditional valuation methodologies out the window, and is instead best characterized as the 'Elon Musk premium.'"
Influence Beyond Business
According to Reuters, the concentration of influence around Musk has also intensified debates over corporate governance, conflicts of interest, and the risks associated with linking major companies so closely to a single individual.
Throughout his career, Musk has frequently engaged in public disputes with regulators, short sellers, journalists, media organisations, and fellow billionaires. Many of these confrontations have played out openly on social media platforms.
His relationship with President Trump followed a similar trajectory. Reuters reported that after supporting Trump's return to the White House and serving in a senior advisory capacity through the DOGE initiative, Musk emerged as one of the administration’s closest corporate allies.
However, disagreements over policy and government spending later strained the relationship, leading to a highly public fallout. Although the two have since adopted a more conciliatory tone, the episode highlighted the increasingly blurred lines between Musk’s business activities and political influence.
Despite concerns surrounding his unconventional behaviour and management style, many investors continue to view Musk as one of the most effective innovators of his generation.
"Elon is the Edison of our time," JPMorgan Chase CEO Jamie Dimon said during a recent conversation with Musk.
The banker, who was once involved in a prolonged legal dispute with Musk, has since become one of his admirers. Dimon told CNBC last year that the pair had "hugged it out", and hailed Musk as "our Einstein".
As Reuters noted, Musk’s rise from entrepreneur to the world’s first trillionaire reflects not only extraordinary personal wealth but also the immense influence he now wields across industries that are shaping the future of transportation, communications, artificial intelligence, and space exploration.