Elon Musk Is About To Be the World’s First Trillionaire. That May Not Be Because of Tesla.

Love him or hate him, there’s no denying that in terms of world-class entrepreneurs that have been able to spot long-duration and very sustainable high-growth markets to build businesses in, Elon Musk is one of the greats. 

The Tesla (NASDAQ:TSLA | TSLA Price Prediction) CEO has rose to fame via making electric vehicles (once a fantasy, similar to flying cars) a reality. Driving down the road, I see dozens every day. And I’d expect to have seen even more, if the Obama-era subsidies for electric vehicles got maintained by this recent administration – spoiler alert, they didn’t. 

It’s true that Musk’s stake in Tesla, now worth $1.6 trillion, amounts to around 15.3% of Tesla’s outstanding share count. At the company’s current valuation, that puts his holdings at around $250 billion in Tesla alone – a tidy sum.

That said, his biggest equity investment actually isn’t in Tesla. Here’s what could drive an absolutely massive pay day for Elon Musk (outside of his potential trillion-dollar pay package investors just approved). 

SpaceX IPO Could Significantly Boost Musk’s Net Worth

SpaceX building

Outside of other endeavors, from his purchase of social media platform Twitter (now X), to AI, robotics and other high-growth areas Musk is trying to build businesses, there’s a lot to keep track of when trying to pencil in his actual net worth right now.

And because so much of his net worth is tied up in private companies, such as SpaceX, there’s been plenty of experts who have tried to nail down his exact net worth. The thing is, private valuations fluctuate significantly, and until these companies go public, it’s impossible to know with exact certainty what he’s really worth.

Well, the day appears to be nearing when SpaceX will go public, with the company interviewing bankers for an IPO in short order. This IPO could raise as much as $1.15 trillion based on the most recent estimates from analysts. That said, if SpaceX were to reach a valuation of $1.5 trillion (as some think is possible, given the company’s Starlink and ties to the U.S. government), Musk’s 42% ownership stake in the company would be worth around $630 billion. That stake, in combination with his other holdings, would get him to a $1 trillion net worth much faster than he may (or may not) achieve the lofty goals the Tesla board has set at his feet. 

So, Is It Possible?

Man thinking with a question mark above his head

Given where valuations are in certain high-growth areas of the economy, a valuation of $1.5 trillion isn’t insane for SpaceX at all. That goes double when investors put this space exploration and satellite launch company next to Tesla. There’s reason to believe that SpaceX could grow much faster than Tesla (and do so more profitably), so I’d imagine investors will be very much on board for this IPO when it happens.

I’m expecting to see “the world’s first trillionaire” headlines soon, and Elon Musk will very likely be the man to hold this mantle.