Key facts
- Elon Musk stated that thousands of SpaceX employees have likely become millionaires following the company's IPO.
- He attributed this wealth creation to his philosophy of granting stock to employees.
- Pre-IPO estimates suggested the IPO could create over 4,400 new millionaires.
- Former employees confirmed SpaceX awarded stock options and allowed for private sales.
- SpaceX CEO Gwynne Shotwell donated approximately $300 million in company stock to a children's program.
Elon Musk stated that thousands of SpaceX employees have likely become millionaires following the company's IPO in June, which valued it at approximately $2 trillion. During an interview on "The Sean Hannity Show," Musk was asked about a former SpaceX welder whose stock reportedly soared to over $1 million in value.
Musk explained that it wasn't just one welder but "several thousand people" who started early and are now likely millionaires due to their stock holdings. He reiterated his long-held philosophy of providing company stock to employees to align incentives and allow them to "participate in the upside." He noted that this approach benefits both the employees and the company as it prospers.
Ahead of SpaceX's public debut, Andrew Benson, founder of pre-IPO trading platform Hill Markets, estimated that the IPO would create approximately 4,400 new millionaires and over 400 centimillionaires. Former SpaceX employees confirmed that the company awarded stock options upon joining, during annual reviews, and with promotions. These employees also had the opportunity to sell some of their holdings in private liquidity events, typically held twice a year.
In a separate development, SpaceX CEO Gwynne Shotwell and her husband are expanding the beneficiaries of SpaceX's success by donating roughly $300 million worth of the company's stock to "Trump Accounts." This government program aims to provide $1,000 to every American child born between the start of 2025 and the end of 2028. The gift received praise from Donald Trump on Truth Social.
SpaceX's stock initially jumped from its IPO price of $135 to over $200 in the days following its public debut. However, as of Wednesday's close, the stock had fallen to below $148. Beyond the financial implications of the IPO, Musk also discussed his long-term aspirations for SpaceX, including establishing a base on the moon within 10 years and potentially sending the first humans to Mars in about five years, with thousands of people following to the red planet within a decade.