Elon Musk no longer holds the title of trillionaire as the value of his rocket company SpaceX took a significant hit.
According to Bloomberg’s Billionaires Index, Musk’s net worth dropped to $957 billion from $1.1 trillion in less than two weeks, following the public debut of SpaceX. Despite this decrease, Musk is still the wealthiest individual globally, as reported by Forbes’ Real-Time Billionaires list, which estimated his fortune at $964 billion on Tuesday.
The decline in SpaceX and Tesla shares, the latter being his electric vehicle company, was part of a broader technology stock sell-off. Musk, who owns approximately 40% of SpaceX and around 12% of Tesla, saw a substantial portion of his net worth tied to SpaceX.
Various factors like extensive data-center investments and increasing geopolitical and economic uncertainties, including tensions with Iran, have raised concerns about the future profitability of artificial intelligence (AI).
Musk achieved trillionaire status on June 12 when SpaceX’s shares surged post its significant IPO on Wall Street. Despite SpaceX facing an overall $2.6 billion loss from operations last year, its stock price soared, reaching a market value of $2.1 trillion on its debut day.
Following the IPO, SpaceX shares initially traded at $135 per share and rose over 19% on the first day. However, prices fluctuated, reaching a high of $176 and closing around $161, making SpaceX the sixth-largest US public company.
After hitting $225 on June 16, SpaceX shares dropped to $156 on Tuesday and further decreased to $154 on Wednesday. Analysts have pointed out emotional decision-making and high expectations in the stock market, emphasizing the need for rational investment decisions despite the potential for significant gains.
Susannah Streeter, the chief investment strategist at Wealth Club, mentioned that SpaceX’s recent decline was partially triggered by plans for a bond sale worth around $20 billion, raising concerns about cash flow for the capital-intensive venture.
