Elon Musk is among the most discussed individuals in global markets right now, after being named a trillionaire on Friday. This achievement comes due to the debut of his company specializing in space technology and artificial intelligence in the American market, SpaceX.
It is worth noting that Elon Musk owns about 38% of SpaceX, including options, and the company’s current valuation of $2.1 trillion helped him crown the world’s first trillionaire title. However, amidst this, Bitcoin critic Peter Schiff criticized him, citing a lack of “real income.”
Peter Schiff criticizes nature of Musk’s wealth
The discussion began soon after Elon Musk’s fortune has exceeded $1 trillion Mark, largely due to his large stake in SpaceX. The tech mogul reportedly controls about 38% of the aviation giant, including stock options.
According to Forbes data, Musk’s net worth is only $1.1 trillion. It is worth noting, SpaceX shares It closed its first day of trading with a 20% jump at $160.95, with the after-market price rising another 3.66% to $166.83, giving it a valuation of $2.1 trillion.
However, Peter Schiff has questioned the significance of the SpaceX CEO’s billionaire achievement. In one of his recent posts on X, he compared Elon Musk’s wealth to that of J.D. Rockefeller.
According to Schiff, Rockefeller generated a huge inflation-adjusted annual income during his time, while Musk’s “real income” exists primarily on paper through rising stock valuations. When social media users asked how Musk became a trillionaire if his income was so small, Schiff clarified his position.
At the same time, he said Musk’s wealth stems from capital gains and not traditional dividends. Recognizing that capital gains are a form of wealth creation, Schiff says He said The problem is the inflated market valuations that support those gains.
Elon Musk is facing criticism from political leaders
Elon Musk’s trillionaire status has also garnered massive backlash from famous American political figures. Senator Elizabeth Warren highlighted America’s widening wealth gap.
She said that the average family would need millions of years to accumulate wealth similar to Musk’s, and renewed her call to impose a tax on extreme wealth. Senator Bernie Sanders echoed similar concerns. He described Musk’s growing wealth as evidence of growing economic inequality and the concentration of power among a small group of wealthy individuals.
Meanwhile, Rep. Becca Balint criticized the size of Musk’s wealth while many Americans still face financial stress related to housing, health care and food costs. She also urged lawmakers to consider measures to tax wealth.
However, amidst this, Solana is the co-founder Anatoly Yakovenko He came to support Elon Musk. Market value should not automatically be treated as tangible wealth, Yakovenko said.
He noted that the value of Musk’s shares reflects expectations about SpaceX’s future growth and not the wealth already achieved. According to Yakovenko, these valuations remain dependent on the company achieving long-term results.
