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The jump in SpaceX stock pushed Musk's net worth past the $1 trillion mark, extending his lead as the world's richest person.
Zohran Mamdani, mayor of New York, has a suggestion after Elon Musk becomes world's first trillionaire.(Bloomberg)New York City Mayor Zohran Mamdani used Elon Musk's latest financial milestone to renew his call for higher taxes on wealthy individuals. Reacting to Musk becoming the world's first trillionaire, Mamdani posted on X: “Reason #1,000,000,000,000 why we should tax the rich.”
Musk's wealth surged after SpaceX made its stock market debut on Friday. The company's shares opened at $150 each, above the IPO price of $135, significantly increasing the value of Musk's holdings.
The jump in SpaceX stock pushed Musk's net worth past the $1 trillion mark, extending his lead as the world's richest person.
Quick answers to key questions
Elon Musk's wealth, now over $1 trillion, has prompted discussions about higher taxes on the rich, as highlighted by New York City Mayor Zohran Mamdani, who advocates for taxing wealthy individuals to achieve greater economic equity.
Musk reached trillionaire status primarily due to the successful IPO of SpaceX, alongside his substantial holdings in Tesla, which collectively bolstered his net worth significantly.
Mamdani's statement regarding taxing the rich reflects a broader political aim to address income inequality and fund public services, leveraging Musk's financial milestone as a focal point.
Investing in SpaceX offers immediate access through its recent IPO, while Tesla has already proven to be one of the best-performing stocks, providing a historical context for potential investors.
Yes, experts advise caution with new IPOs like SpaceX, as they can be volatile and may not be profitable immediately, suggesting diversification through mutual funds or ETFs as safer alternatives.
Mamdani's comments reflect the platform he campaigned on. The progressive mayor has consistently supported higher taxes on wealthy residents. His administration's new pied-à-terre tax on expensive second homes has already drawn criticism from some affluent property owners in the city.
Long-running tensions with Musk
Musk has previously criticised Mamdani and backed Andrew Cuomo during New York City's mayoral race last year.
Despite their political differences, Mamdani has said he and Musk share an interest in improving efficiency and cutting waste in government.
Last month, Mamdani announced the creation of a Commission on Government Efficiency, a programme designed to streamline city operations.
The initiative has been compared to the Musk-led DOGE office established within the White House.
How Elon Musk made his fortune
Elon Musk's journey to becoming the world's first trillionaire began with the sale of two early ventures, Zip2 and PayPal, which earned him roughly $200 million. He used that money to start SpaceX and invest in Tesla, and defied the odds by creating a space company that figured out how to reuse rockets and a car company that made electric vehicles cool.
A large share of Musk's fortune exists in the form of stock holdings and performance-based share awards. Many of these shares have not been sold, while some will only vest if Tesla and SpaceX meet demanding business targets.
His latest Tesla compensation package was so substantial that it attracted criticism from the Vatican.
Tesla's stock surge rewards investors
Musk has often faced criticism for clashes with regulators, dividing his time across several companies and, more recently, taking up a role in the Trump administration. However, Tesla's soaring share price has largely overshadowed those concerns.
Since its stock market debut in 2010, Tesla has delivered returns of around 20,000%, creating more than $1.2 trillion in wealth for investors.
SpaceX IPO could reshape market indices
SpaceX is the first of three major companies expected to list on the stock market this year, with AI firms Anthropic and OpenAI also expected to follow.
In a move that could accelerate investor demand, Nasdaq has amended its rules to allow SpaceX to be added to index-linked funds within 15 days of its listing, meaning many investors could end up buying the stock sooner than usual.
Not everyone is welcoming SpaceX's arrival on public markets.
Representatives of pension funds covering firefighters, teachers and other public-sector workers in California and New York sent a letter to SpaceX last month expressing concerns over parts of the company's IPO structure.
Among the issues raised were mandatory arbitration requirements for shareholder disputes and the level of control Musk is expected to retain over the company after the listing.
(With inputs from news agency AP)
About the Author
Kanishka Singharia
Kanishka Singharia is a Senior Content Producer at Mint with a passion for news, trends, and the stories shaping the digital world. She specialises in spotting viral narratives by constantly tracking social media platforms and turning them into engaging, reader-friendly stories. Her work ranges from fast-paced breaking updates to sensitive human-interest features, blending speed with clarity. <br><br> With over four years of experience in news and trend reporting, Kanishka has worked with leading organisations such as Hindustan Times and Times Now. She moves seamlessly between profiling business leaders and telling the stories of everyday people, covering national developments just as effortlessly as the memes and conversations that dominate online culture. <br><br> She also reports on real estate developments and civic challenges in major urban hubs like Bengaluru, Delhi, and Gurugram. Her coverage frequently explores the struggles of startup founders, inspiring journeys of CEOs, and the experiences of candidates dealing with the complexities of visa processes. <br><br> Kanishka holds an undergraduate degree in Journalism from Delhi University and a diploma from the Indian Institute of Mass Communication. Rarely offline, she spends much of her time scrolling through X, LinkedIn, Reddit, Instagram, and Facebook in search of the next big story. When she finally logs off, she enjoys binge-watching shows and exploring cafes in pursuit of good food and better conversations.
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