Elon Musk’s net worth fell by approximately $240 billion following a sharp decline in SpaceX’s stock price this month. The rocket company’s historic IPO earlier in June briefly made Musk the first trillionaire, with his net worth peaking at $1.32 trillion. However, after an initial 20% surge on the first trading day, SpaceX shares dropped 16.43%, reducing the company’s market capitalization to $2.03 trillion from a high of $2.78 trillion, according to fortune.com.
SpaceX’s public debut saw Musk’s ownership of around 5 billion shares significantly boost his wealth, tying a large portion of his fortune to the company’s valuation. The stock selloff erased roughly $400 billion in market value in a single day. Concurrently, Tesla shares also declined by 6.6% over the past month, contributing to Musk’s net worth decrease to $1.08 trillion as tracked by the Bloomberg Billionaires Index, per fortune.com.
The $240 billion drop in Musk’s net worth is comparable to the market capitalization of IBM, a major global technology company that employs about 270,000 people. This decline highlights the volatility of Musk’s wealth, which is heavily linked to the performance of his publicly traded companies. SpaceX’s valuation remains among the highest globally, briefly surpassing Amazon after its IPO, underscoring the scale of the selloff’s impact, according to fortune.com.
At the time of reporting, SpaceX’s market cap stands at $2.03 trillion following the recent selloff, with Musk’s net worth now at $1.08 trillion, down from its peak earlier this month, as detailed by fortune.com.