SpaceX IPO poised to result in $1.75 trillion valuation, could make Elon Musk world's 1st trillionaire

SpaceX's Starship V3 taking flight last month.

Elon Musk's SpaceX is set to go public next Friday, June 12, and the IPO is expected to skyrocket the company's valuation to $1.75 trillion, insiders reportedly say, in what will be the biggest IPO in history. 

The Wall Street Journal reported that SpaceX is expected to sell no more than 5% of the company's shares, which could raise between $60 billion and $80 billion for the company. Bloomberg reported that the SpaceX stock price will open at $135 per share, which would bring in roughly $75 billion, according to anonymous sources. SpaceX as of Wednesday had yet to declare its IPO price, and may not do so until the day before the initial public offering next Friday. 

What is certain, though, is that the IPO will be the biggest in history, and could turn Musk into the world's first trillionaire. The Wall Street Journal crunched the numbers and, even figuring conservatively at a $970 billion net worth, Musk, 54, has made about $3.6 million an hour over the last 31 years. The WSJ sliced and diced Musk's immense net worth numerous ways to help comprehend the vastness of his overall wealth. It's worth noting that much of Musk's wealth is tied up in stock, and varies along with the changing stock price of his numerous companies. 

Since SpaceX has been a private company since its founding, outsiders knew little about its financials, but the mystery surrounding how it generates revenue and what it spends money on was made public last month when the company issued its IPO filing. The lone profitable part of the business, the filing revealed, is Starlink, its unique satellite internet service, which raked in $11 billion in revenue last year. 

Musk's colossal compensation, in the form of a stock grant also revealed in the filing, is contingent on “the establishment of a permanent human colony on Mars with at least one million inhabitants." The company also declared in the filing, “We do not want humans to have the same fate as dinosaurs.”

One of the biggest believers in SpaceX, and Musk's companies overall, is the legendary investor Ron Baron, the founder of Baron Capital. Baron has more than $50 billion in client assets under management, and his funds are heavily invested in Tesla and SpaceX. Since 2017, Baron has been able to access SpaceX shares through an annual tender sale in which his fund is able to purchase shares from employees of SpaceX, he said during a recent interview on CNBC. Baron's funds own about $15 billion worth of SpaceX stock based on its current price.

Baron, 83, has been described as "Musk's biggest fanboy." Watch the interview with Baron below in which he explains why he is so bullish on SpaceX, comparing the space exploration firm to Britain's East India Company that was founded in the early 1600s. He also addresses speculation that Musk may merge SpaceX with Tesla at some point after the IPO.