SpaceX's IPO turns Musk into a trillionaire at the expense of retirees.

      **TL;DR:** SpaceX's $75 billion IPO has made Elon Musk the world's first trillionaire, with a net worth exceeding $1.1 trillion. However, Nasdaq's expedited index inclusion forces retirement savers in passive funds to invest in a company that posted a $4.94 billion loss last year, prompting a failed SEC intervention by Senator Elizabeth Warren.

      Elon Musk has surpassed $1 trillion in net worth. SpaceX's IPO, which priced 555.6 million shares at $135 each on June 12, valued the company at approximately $1.77 trillion, placing Musk in a financial league that no one has achieved before. His stake in SpaceX is estimated to be worth around $866.5 billion, according to the latest IPO details. When combined with his Tesla shares and other assets, entities like Forbes and Reuters estimate his total wealth to be above $1.1 trillion.

      However, this trillionaire status should come with a caveat. Musk's wealth is largely dependent on his equity in SpaceX and Tesla rather than cash on hand. Liquidating a significant portion of his interest would saturate the market, lowering share prices and making the “trillionaire” title more symbolic than practical. The Washington Post prominently featured this point, emphasizing that the wealth exists "on paper."

      **Nasdaq's revised rules:**

      This IPO stands out from previous major listings due to how swiftly it will be included in index funds. Starting May 1, 2026, Nasdaq modified its approach so that any new company among the top 40 by market capitalization can be added to the Nasdaq-100 after just 15 trading days. Previously, the seasoning period was much longer, and the minimum float requirement has been entirely removed. SpaceX, trading under the ticker SPCX, is expected to qualify shortly after its launch.

      In contrast, the S&P 500 rejected a similar proposal on June 4, meaning SpaceX won’t be eligible for that index until at least mid-2027, and only if it shows four consecutive quarters of positive GAAP earnings. Based on its current financial performance, this timeline appears optimistic.

      **Challenges for retirement funds:**

      While index inclusion may seem like a minor detail, it has significant implications. Once SpaceX joins the Nasdaq-100, all funds tracking that index, including the commonly held QQQ ETF, will be required to purchase shares, irrespective of the fund managers’ views about the company's viability as an investment. Analysts predict that around $22 billion to $27 billion will automatically flow into SpaceX from funds linked to the Nasdaq-100 and Russell indices. Nearly half of all index fund assets belong to retirement plans, such as 401(k)s, IRAs, and pensions.

      Fortune has noted that this setup effectively obliges millions of passive investors to invest in a company that has never turned a profit for a full year. Critics have labeled this a “massive wealth transfer” from retirement contributors to current SpaceX shareholders, including Musk.

      **Warren's attempt to intervene:**

      On June 10, Senator Elizabeth Warren reached out to SEC Chairman Paul Atkins, requesting a delay in the listing. In her correspondence, she raised three main concerns regarding the company's valuation, governance structure, and the potential for index rules to be manipulated to direct passive investment into a company lacking profitability. Musk possesses about 42% of SpaceX's equity but commands 82.4% of the voting power through a dual-class share system that allows Class B shares to have ten votes each. A Danish pension fund has completely excluded SpaceX from its investments, labeling its governance as "catastrophic." Warren's letter described Musk as “virtually unimpeachable,” but the SEC did not act on her request, and the IPO moved forward as planned.

      **Financial performance overview:**

      SpaceX incurred a net loss of $4.94 billion in 2025 on revenues of $18.67 billion. In the first quarter of 2026, the company reported an additional loss of $4.28 billion. The only consistently profitable division is Starlink, the satellite internet sector, which generated $11.4 billion in revenue and an operating profit of $4.42 billion last year. With a 39% operating margin, Starlink's performance resembles that of software companies rather than hardware ones, and user growth has been robust, rising from 2.3 million in 2023 to 10.3 million in Q1 2026.

      The challenges stem from xAI, the artificial intelligence unit Musk integrated into SpaceX in February 2026, which reported an operating loss of $6.36 billion in 2025, erasing Starlink’s benefits. Additionally, reports indicate a significant departure of talent from the AI division, compounded by geopolitical pressures amplifying operational risks.

      **Comparison of wealth:**

      Musk's wealth now rivals the combined fortunes of Larry Page, Jeff Bezos, Sergey