Elon Musk's Business Empire Expands with SpaceX IPO and Recent Mergers
Elon Musk, holding CEO roles and ownership stakes across numerous ventures, has seen more of his companies consolidate. This week, his rocket maker SpaceX went public with the largest initial public offering in history, achieving a $2.1 trillion market value. Earlier this year, SpaceX merged with his artificial intelligence company xAI, which now houses the social media platform X, formerly Twitter. Musk's diverse business portfolio also includes electric vehicle manufacturer Tesla, brain-computer interface firm Neuralink, and underground transportation company The Boring Company, all contributing to his extensive influence across technology and infrastructure.
Elon Musk, identified as the world's richest man and the first-ever trillionaire, oversees a broad array of businesses that span electric vehicles, brain implants, underground tunnels, and space exploration. A growing number of these ventures have recently come under the same corporate umbrella.
SpaceX, founded by Musk in 2002, went public this week in the largest initial public offering in history, closing at just under $161 per share for a total market value of $2.1 trillion. The company reported an overall operating loss of $2.6 billion last year. SpaceX merged with Musk's artificial intelligence company xAI earlier this year. SpaceX owns the satellite communications service Starlink, which generated $4.4 billion in operating income last year. The social media platform X, formerly Twitter—acquired by Musk for $44 billion in 2022—is now housed under xAI, the developer of the Grok chatbot. Both X and xAI were reported as money-losers last year, with xAI incurring $6.4 billion in operational losses. SpaceX has outlined ambitious goals, including becoming an AI leader, making human life multiplanetary, placing data centers in space, and colonizing Mars.
Musk has served as CEO of Tesla, the electric car manufacturer, since 2008. Last year, Tesla lost its position as the world's largest EV maker to China’s BYD. Sales were also affected by boycotts related to Musk's politics, though figures have since shown some rebound. Tesla's future strategy, according to Musk, focuses more on self-driving taxis and less on car sales. The company has also increased its production of robots for homes and businesses and has been involved in the solar energy sector for approximately a decade following its acquisition of SolarCity, a company co-founded by Musk and two of his cousins. Tesla went public in 2010 and currently holds a market cap of around $1.5 trillion.
Neuralink, co-founded by Musk in 2016, also lists him as CEO. This brain-computer interface company is engaged in connecting the human nervous system to machines. It has initiated clinical trials for individuals with spinal cord injuries, ALS, and other conditions, announcing 21 trial participants worldwide in January. The company has publicized several brain implants in recent years.
The Boring Company, founded by Musk approximately a decade ago, specializes in tunnel digging and underground transportation. Its projects include the “Vegas Loop,” an underground network of Tesla-hailing tunnels that first opened around the Las Vegas Convention Center in 2021. The company has proposed high-speed transit networks for Dubai and Nashville. However, it has faced criticisms, including accusations of violating safety and environmental regulations in Las Vegas, where its full route remains unfinished.
According to Fortune, some observers believe SpaceX's IPO valuation significantly overvalues the company, with its ambitious goals relying on unproven technology and substantial capital requirements.
