Economist Peter Schiff criticized Space Exploration Technologies Corp. (NASDAQ:SPCX) CEO Elon Musk‘s trillionaire status following the commercial space flight company’s IPO.
Elon Musk Richer Than J.D. Rockefeller
In a post on X on Friday, Schiff opined on the SpaceX IPO, saying that Musk was “the first person to surpass J.D. Rockefeller as the richest private citizen ever.” However, he said that there was a caveat to the milestone.
“Adjusted for over 100 years of inflation, Rockefeller earned about $2 billion per year in real income,” Schiff said, adding that Musk, on the other hand, “earns nothing.” The economist then pointed towards a bubble in the market. “What a difference a bubble makes,” he said.
SpaceX IPO Draws Ire
SpaceX’s IPO, which opened 11% higher at $150/share than the offer price of $135, surged to an intraday high of $176.52 on IPO day and finished its debut session at $160.95, illustrating a gain of nearly 19%.
However, Economist Robert Reich criticized the IPO as the “universe’s largest Ponzi scheme,” saying that the IPO was forcing investors and people to participate in it whether they liked it or not.
SpaceX’s valuation also drew criticism from Reich. Notably, the company is worth more than the combined value of the 12 aerospace and defense enterprises listed on the S&P 500 index, including RTX Corporation (NYSE:RTX), Boeing Co. (NYSE:BA) and more.
Democrats Slam Elon Musk
The trillionaire milestone was also criticized by Democratic lawmakers, including New York City Mayor Zohran Mamdani, who said that the milestone was “reason #1,000,000,000,000” why there should be taxation on the society’s wealthiest population.
Gov. Gavin Newsom (D-CA) said that Americans were “struggling” to get everyday goods and gas, while Musk became a trillionaire, outlining the wealth disparity in the U.S.
Price Action: SpaceX shares were up 3.67% to $166.85 while the market was closed on Friday.
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