Just days after making history as the world’s first trillionaire following SpaceX’s stock market debut, Elon Musk’s wealth has dropped from a peak of $1.32 trillion to around $1.1 trillion at the time of writing, according to Forbes Billionaire List. The drop between June 16 and a week later is somewhere around $240 billion.
SpaceX shares dropped around 4% on Tuesday opening to around $149 apiece, extending a week-long slump that wiped out roughly $1 trillion in market value from the company’s peak of $277 per share on June 16.
The latest drop in value has taken its cumulative decline from its June 16 peak to more than 30%. On Tuesday, the stock recovered some ground after a major drop, but remained firmly in negative territory.
The space and AI company saw huge gains after its blockbuster IPO on June 12, SpaceX debuted with a valuation of about $1.8 trillion, which quickly surged to more than $2.7 trillion, briefly making it more valuable than Amazon and Microsoft in terms of market capitalization.
SpaceX IPO euphoria fades
SpaceX shares surged after the company listed on Nasdaq, climbing more than 50% above their offering price of $135 as investors rushed to back Elon Musk’s ambitious vision for the space and technology giant.
However, the rally has quickly lost steam. By the end of last week, the stock had given up most of its post-listing gains, leaving many investors who bought after the IPO with little to show for the initial surge.
The pullback has also reduced profits for retail investors who secured allocations through brokerage firms such as Robinhood, Fidelity and SoFi. Although many individual investors received far fewer shares than they had applied for, in some instances only a single share or a small allocation, those shares were purchased at the IPO price of $135, allowing investors to remain in profit despite the recent correction.
The breakdown of Musk’s top wealth drivers
- SpaceX: Musk holds a roughly 38% stake in the newly listed company, including 4.8 billion shares and an additional 350 million stock options with an exercise price of $8.40 per share, according to Forbes. This makes up more than half of his entire net worth. SpaceX, founded in 2002, acquired xAI in February in a deal that valued the combined company at $1.25 trillion.
- Tesla: He owns nearly 11% of the electric vehicle manufacturer. Musk first backed the company in 2004, and has led it as the chief executive since 2008. He also has restricted stock giving him another 8% that he will forfeit if he doesn’t remain at until January 2028.
- Other holdings: While the bulk of his fortune is held in SpaceX and to a lesser extent in Tesla, Musk also founded and has stakes in tunneling startup The Boring Company and brain implant outfit Neuralink, which fill out the remainder of his current trillion-dollar portfolio.