Elon Musk loses trillionaire status as SpaceX shares tumble

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File: Elon Musk

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Chief Executive Officer, CEO, of Tesla and SpaceX, Elon Musk, has lost his trillionaire status following a sharp decline in the value of the rocket company’s shares.

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According to the Bloomberg Billionaires Index, Musk’s net worth fell to $946 billion, yesterday, down from the more than $1 trillion valuation recorded on June 12 following SpaceX’s initial public offering, IPO.

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The billionaire became the world’s first trillionaire after the successful listing of SpaceX, with his fortune surging from $707 billion to more than $1.1 trillion within days of the company’s market debut.

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However, less than two weeks later, a sustained decline in SpaceX shares has erased hundreds of billions of dollars from his wealth.

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However, Forbes reported that Musk’s net worth fell from $1.45 trillion to just under $1.1 trillion after SpaceX’s share price dropped nearly 30 percent from its June 16 peak.

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The company’s shares had surged as much as 67 percent during their first three days of trading after the record-breaking IPO, which valued SpaceX at more than $1.8 trillion.

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Since then, the stock has fallen for three consecutive trading sessions, wiping out about $928 billion in market value from a peak of $2.9 trillion to roughly $2 trillion.

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Musk’s wealth is largely tied to his 38 percent stake in SpaceX, alongside his 11 percent holding in Tesla and investments in several other ventures.

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The decline accelerated on Monday when SpaceX shares fell 16.4 percent after the company announced plans for its first investment-grade bond offering aimed at raising at least $20 billion to fund its artificial intelligence ambitions.

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Checks by TheCable shows SpaceX shares were trading at about $155 on Thursday, down sharply from their post-IPO peak of $225.64 but still above the company’s $135 listing price.

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