New York City Mayor Zohran Mamdani used Elon Musk’s latest financial milestone to renew his call for higher taxes on wealthy individuals. Reacting to Musk becoming the world’s first trillionaire, Mamdani posted on X: “Reason #1,000,000,000,000 why we should tax the rich.” Musk’s wealth surged after SpaceX made its stock market debut on Friday. The company’s shares opened at $150 each, above the IPO price of $135, significantly increasing the value of Musk’s holdings. The jump in SpaceX stock pushed Musk’s net worth past the $1 trillion mark, extending his lead as the world’s richest person. Quick answers to key questions •5 QUESTIONS Elon Musk’s wealth, now over $1 trillion, has prompted discussions about higher taxes on the rich, as highlighted by New York City Mayor Zohran Mamdani, who advocates for taxing wealthy individuals to achieve greater economic equity. Musk reached trillionaire status primarily due to the successful IPO of SpaceX, alongside his substantial holdings in Tesla, which collectively bolstered his net worth significantly. Mamdani’s statement regarding taxing the rich reflects a broader political aim to address income inequality and fund public services, leveraging Musk’s financial milestone as a focal point. Investing in SpaceX offers immediate access through its recent IPO, while Tesla has already proven to be one of the best-performing stocks, providing a historical context for potential investors. Yes, experts advise caution with new IPOs like SpaceX, as they can be volatile and may not be profitable immediately, suggesting diversification through mutual funds or ETFs as safer alternatives. Mamdani’s comments reflect the platform he campaigned on. The progressive mayor has consistently supported higher taxes on wealthy residents. His administration’s new pied-à-terre tax on expensive second homes has already drawn criticism from some affluent property owners in the city. Long-running tensions with Musk Musk has previously criticised Mamdani and backed Andrew Cuomo during New York City’s mayoral race last year. Despite their political differences, Mamdani has said he and Musk share an interest in improving efficiency and cutting waste in government. Last month, Mamdani announced the creation of a Commission on Government Efficiency, a programme designed to streamline city operations. The initiative has been compared to the Musk-led DOGE office established within the White House. How Elon Musk made his fortune Elon Musk’s journey to becoming the world’s first trillionaire began with the sale of two early ventures, Zip2 and PayPal, which earned him roughly $200 million. He used that money to start SpaceX and invest in Tesla, and defied the odds by creating a space company that figured out how to reuse rockets and a car company that made electric vehicles cool. Also Read | 5 powerful money lessons I learned from world’s first trillionaire, Elon Musk A large share of Musk’s fortune exists in the form of stock holdings and performance-based share awards. Many of these shares have not been sold, while some will only vest if Tesla and SpaceX meet demanding business targets. His latest Tesla compensation package was so substantial that it attracted criticism from the Vatican. Tesla’s stock surge rewards investors Musk has often faced criticism for clashes with regulators, dividing his time across several companies and, more recently, taking up a role in the Trump administration. However, Tesla’s soaring share price has largely overshadowed those concerns. Also Read | Quote of the day by Elon Musk: ‘Whoever said money can’t buy happiness really…’ Since its stock market debut in 2010, Tesla has delivered returns of around 20,000%, creating more than $1.2 trillion in wealth for investors. SpaceX IPO could reshape market indices SpaceX is the first of three major companies expected to list on the stock market this year, with AI firms Anthropic and OpenAI also expected to follow. In a move that could accelerate investor demand, Nasdaq has amended its rules to allow SpaceX to be added to index-linked funds within 15 days of its listing, meaning many investors could end up buying the stock sooner than usual. Also Read | Why can’t Elon Musk do for politics what he’s done for industry? Not everyone is welcoming SpaceX’s arrival on public markets. Representatives of pension funds covering firefighters, teachers and other public-sector workers in California and New York sent a letter to SpaceX last month expressing concerns over parts of the company’s IPO structure. Among the issues raised were mandatory arbitration requirements for shareholder disputes and the level of control Musk is expected to retain over the company after the listing. (With inputs from news agency AP) Source link Post navigation US Kills Tren de Aragua Leader Guerrero in Strike on Compound Born on 13 June? You share your birthday with Chris Evans, Disha Patani, Piyush Goyal and more
