With SpaceX's anticipated initial public offering next year poised to push Elon Musk's net worth past $1 trillion, attention is turning to how the world's richest person plans to dispose of his astronomical fortune—and whether his children will inherit control of his business empire.
Forbes reported on January 15 that Musk's net worth has surpassed $600 billion. The surge came after SpaceX, his privately held space venture, was valued at $800 billion in a recent insider share sale, adding $168 billion to his previous net worth and bringing the total to an estimated $677 billion—approximately 1,001 trillion won at current exchange rates.
Musk holds approximately 42% of SpaceX. The company's valuation has doubled in roughly four months from $400 billion in August. Market observers suggest SpaceX could achieve a valuation of $1.5 trillion upon its planned IPO next year. Even if SpaceX falls short of that target, Forbes projects Musk's total net worth will likely exceed $1 trillion once the company goes public.
His Tesla compensation package has also grown substantially. Tesla shareholders approved a plan last month that could grant Musk up to $1 trillion in additional stock if he achieves key performance milestones, including growing Tesla's market capitalization to $8.05 trillion over the next decade. Meanwhile, xAI Holdings—formed by merging his artificial intelligence startup xAI with X (formerly Twitter)—is reportedly in discussions to raise funds at a valuation of $230 billion, more than double its previous assessment. Musk is estimated to hold 53% of xAI Holdings.
'Passing Control to Children Would Be a Mistake'
The key question is how Musk will deploy this vast wealth. He has previously stated that "passing control of a company to children simply because they are your children is a mistake." He has expressed the view that hereditary succession is not the right approach, saying he would transfer his stakes to individuals who fully understand and can execute each company's vision if he can no longer run them himself.
Ryan Burton, founder of wealth management firm Masonboro Advisors, described this position as welcome news for investors. "For small investors, it's very encouraging that Musk prioritizes the company's needs over his family's comfort," Burton told media outlets. "His commitment to handing leadership to the most capable person rather than an unprepared family member will benefit long-term corporate growth."
This does not mean Musk is abandoning his family entirely. He has reportedly established a large residential compound in Texas for his children and their mothers. Musk has 11 children: five sons with his first wife, author Justine Wilson; three children—two sons and a daughter—with Canadian musician Grimes; and three children with Shivon Zilis, a director at his neuroscience startup Neuralink, through sperm donation.
Experts believe Musk will likely employ legal mechanisms such as buy-sell agreements. Such arrangements would transfer voting control to capable successors while allowing family members to benefit from the economic value of shares through cash-outs, maintaining their living standards while preserving professional management.
Criticism Over Philanthropic Giving
Musk has faced persistent criticism in the United States for being stingy with charitable giving. Pop star Billie Eilish shared a post on Instagram on December 13 titled "What the world's first trillionaire could do with his fortune." She argued Musk could solve global hunger by spending $40 billion annually through 2030, protect 10,443 species from extinction with $1 billion to $2 billion per year, and rebuild Gaza—devastated by the Israel-Hamas war—with $53.2 billion. Eilish called Musk "a pathetic coward."
The New York Times reported earlier this month that the Musk Foundation, despite its charitable status, essentially serves to advance Musk's personal interests. With $14 billion in assets, the foundation ranks among America's ten largest nonprofits. According to NYT's analysis of tax filings, nearly 80% of last year's total donations—$370 million out of $474 million—went to The Foundation, a nonprofit in Texas run by Musk associates. Since 2022, the Musk Foundation has donated a total of $607 million to this organization.
The concern is that this nonprofit's operations are closely tied to Musk. The Foundation runs elementary schools near Musk's Texas companies, effectively serving the educational needs of his employees' children, according to NYT. The organization plans to establish high schools and universities in the future. In a podcast interview, Musk acknowledged that "the hardest part of running a foundation is donating money in ways that genuinely help people."
