SpaceX IPO Makes 4,400 Employees Millionaires

Brownsville Real Estate Market Braces for Surge as SpaceX Employees Cash In

With SpaceX's upcoming initial public offering (IPO) scheduled for the 12th, more than 4,000 employees are expected to join the ranks of millionaires. Accordingly, the real estate market around SpaceX is also anticipated to become active.

On the 10th, local time, the New York Times (NYT), citing San Francisco-based investment platform Hill.com, reported that more than 4,400 current and former employees are projected to become millionaires following SpaceX's listing. Among them, approximately 400 are anticipated to hold assets exceeding 100 million dollars (approximately 150 billion Korean won).

SpaceX has approximately 22,000 employees in total. The company is expected to list this week at $135 per share (approximately 210,000 Korean won). Based on this, its enterprise value reaches 1.77 trillion dollars (approximately 2,700 trillion Korean won). This is about five times the market capitalization of General Electric (GE), a leading U.S. electronics company. Despite posting losses in the trillions of won in the first quarter alone, the company has been granted investment-grade ratings by major global credit rating agencies such as Moody's, Fitch, and S&P.

While wealth typically concentrates among founders and early investors during an IPO, the case of thousands of employees simultaneously rising to the ranks of major asset holders is considered highly unusual.

Andrew Benson, founder of Hill.com, evaluated, "It is rare to have 400 individuals with assets exceeding 100 million dollars," adding, "This signifies the massive wealth generated at SpaceX."

The biggest beneficiary of the IPO is founder and CEO Elon Musk. Musk holds approximately 42% of SpaceX's shares, and the market believes that this listing could make him the world's first 'trillionaire.'

Employees who joined SpaceX from its early days and contributed to its growth are also expected to amass significant wealth. Trevor Hayes joined SpaceX in 2011, just before graduating from university, when the company was still a startup, and received over 100,000 shares. The NYT reported that the value of Hayes' SpaceX shares is expected to reach at least $13.5 million.

Former employee Gavin Petty joined in 2012 as a launch engineer and received thousands of shares instead of a cash bonus in addition to his $80,000 annual salary. He explained that this was considered a highly risky choice at the time, as SpaceX's rockets had not yet been fully verified and there were instances of launch failures.

However, not all employees will benefit from the listing. As Musk has expressed negative views on publicly traded companies, criticizing the need to disclose management information to shareholders every quarter, some employees reportedly exchanged their shares for restaurant gift certificates, such as those from Chili's, anticipating that the company would not go public.

Anticipation of new millionaires has also stirred the real estate market in Brownsville, Texas, near SpaceX's launch facility 'Starbase.' Hannah Jones, chief economist at real estate information company Realtor.com, predicted, "Since SpaceX has primarily compensated employees with equity rather than cash, a significant portion of their assets remained unliquidated. Following the listing, large amounts of capital are likely to flow into the real estate market."

Local real estate agent Bob Torres mentioned that after Musk encouraged relocation to the Brownsville area through social media (SNS) in 2021 to attract talent, "suddenly inquiries started coming in from across the U.S.," adding, "SpaceX employees even began competitively bidding and purchasing properties."