Elon Musk No Longer a Trillionaire as SpaceX Shares Tumble
The tech mogul's net worth dropped significantly after a sharp decline in SpaceX's stock value following its recent IPO.
Elon Musk has fallen from his position as the world's first trillionaire, as shares in his aerospace and artificial intelligence company, SpaceX, experienced a significant drop. This decline has reduced his net worth to below the trillion-dollar mark, according to Forbes' calculations.
SpaceX's initial public offering (IPO) saw its shares surge from an opening price of $135 on June 12 to a high of $225 on June 16. However, the stock crashed by 35% to a low of $147 on Tuesday, erasing more than $1 trillion from the company's valuation. Consequently, Musk's fortune reportedly fell from $1.45 trillion to $962 billion.
As of last night, SpaceX shares were trading at $154, suggesting Musk could potentially regain trillionaire status if the stock price recovers. His overall wealth, however, is also closely linked to the performance of his electric car company, Tesla.
Analysts note that Musk's wealth is heavily concentrated in his two primary ventures, Tesla and SpaceX. "The old adage is, you concentrate to build wealth, and diversify to keep it," said Ben McKeown, investment manager at Dowgate Wealth. "Musk is the most extreme example. Almost his entire net worth sits in Tesla and SpaceX, which have been extremely volatile."