Elon Musk’s trillionaire status has taken a hit as the value of his rocket company SpaceX plummeted. According to Bloomberg’s Billionaires Index, Musk’s net worth dropped to $957 billion from $1.1 trillion just two weeks ago, when SpaceX went public, propelling him to become the world’s first trillionaire.
Forbes’ Real-Time Billionaires list also reported Musk’s fortune at $964 billion on Tuesday. Despite the decrease, Musk remains the wealthiest individual globally by a significant margin.
The decline in SpaceX and Tesla shares, in which Musk holds stakes of around 40% and 12% respectively, coincided with a broader downturn in technology stocks. Factors such as substantial data-center investments and escalating geopolitical and economic uncertainties, including tensions with Iran, have raised concerns about the future profitability of artificial intelligence.
Musk achieved trillionaire status on June 12 after SpaceX’s successful IPO, despite the company recording a $2.6 billion operational loss last year. SpaceX’s stock, initially priced at $135 per share, surged over 19% on the first trading day, reaching a high of $168 before closing at nearly $161, giving the company a market value of $2.1 trillion.
However, SpaceX shares peaked at $225 on June 16 before sliding back to $156 on Tuesday and further dropping to $154 on Wednesday. Analysts such as Danni Hewson from AJ Bell emphasized the importance of rational investment decisions, cautioning against emotional speculation in the market.
Susannah Streeter, chief investment strategist at Wealth Club, noted that SpaceX’s recent downtrend was likely influenced by plans for a $20 billion bond sale, raising concerns about cash flow for the capital-intensive enterprise.