Elon Musk achieved the milestone of becoming the world’s first trillionaire after SpaceX’s shares soared following the company’s eagerly awaited stock market launch on June 12. While much of the focus has been on the added wealth to Musk’s portfolio, the listing has also significantly impacted the lives of thousands of current and former employees who have accumulated stock over the years.
The aerospace company concluded its first trading day with a market valuation of approximately $2.1 trillion, positioning it as one of the world’s most valuable publicly traded entities. This surge in share prices is projected to create numerous new millionaires, with estimates indicating that over 4,400 current and former employees possess stock valued at a minimum of $1 million.
According to an analysis by Hill.com, nearly 400 employees could see their net worth exceed $100 million. “Typically, only the founders reach billionaire status. It’s rare to have 400 individuals at that $100 million benchmark. This reflects the immense wealth being generated here,” stated Andrew Benson, the founder and CEO of Hill.com.
One individual who stands to benefit is Trevor Hise, who joined SpaceX in 2011 after graduating from college. His family had suggested he pursue a more stable career at General Electric, but the 37-year-old opted to remain with SpaceX, a choice that has since proven transformative.
After a dozen years with the company, Hise, who served as a launch engineer, amassed over 100,000 shares. “The scale of this has been incredible. Initially, there was a strong sentiment that SpaceX was an unproven startup that wouldn’t endure for long,” he was cited by NYT.
SpaceX shares soared 19% on their initial trading day on Nasdaq, concluding the largest IPO in history. The stock finished the session around $161, granting the company a market valuation of roughly $2.1 trillion, with further gains in after-hours trading adding nearly $100 billion to its worth.
Another former employee, Gavin Petit, began his journey with SpaceX in 2012 as a launch engineer. In addition to his salary, he received company shares valued at less than $14 each at that time. Throughout the years, he chose to receive bonuses in stock instead of cash, despite the associated uncertainties.
Although he sold some shares during liquidity events to settle his mortgage, Petit, who departed SpaceX in 2023, retained the bulk of his holdings. Currently, he owns more than 50,000 shares and stands to gain significantly from the IPO. He described the offering as “the Coca-Cola or Google IPO of my generation. I feel incredibly fortunate to have been part of it.”
Not all former employees held onto their shares, with some reportedly selling stock prematurely or trading it during uncertain times for SpaceX. With the company now on the brink of a historic public launch, those workers might be regretting those decisions.
The IPO exemplifies a rare occurrence of wealth creation that extends beyond just the founders and high-ranking executives. While most major public offerings mostly benefit company leadership and investors, SpaceX’s scale means that thousands of employees are also set to share in the financial rewards.
Also Read: SpaceX Debut on Wall Street: Key Things to Know
