Elon Musk’s net worth has plummeted to $957 billion after a dramatic drop in the stock value of his space company, SpaceX. Previously estimated at over $1.1 trillion, this decline marks a swift change in Musk’s financial standing.
Following a record-breaking public offering in June, Musk briefly became the first person to surpass a net worth of $1 trillion, according to the Bloomberg Billionaires Index. However, this milestone was short-lived. After the initial surge in SpaceX’s stock price—rising 67% from an issuance price of $135 to a peak of around $225—investors witnessed a painful decline, with shares dropping nearly 35% to $163 on Tuesday.
Stock Market Decline Hits Musk’s Wealth
The stock market’s turbulence has directly affected Musk’s wealth, heavily tied to his holdings in SpaceX and Tesla. Following the recent downturn, his net worth is now estimated at $957 billion, keeping him as the world’s richest person, but the elusive trillion-dollar mark has slipped away for the time being.
Market sentiments have turned nervous, with investors moving to protect against further losses after the euphoria following SpaceX’s record public offering. Options traders no longer anticipate solely price increases.
Analysts suggest there is a significant likelihood that, by mid-September, SpaceX’s stock could drop below the issuance price of $135.
Yet, Musk’s story is far from over. A potential rebound in stock prices could occur as soon as Friday, when SpaceX is set to enter major U.S. stock market indices. This inclusion could compel large funds to purchase SpaceX shares, potentially bolstering the stock’s value further.
