On a June afternoon, Elon Musk's fortune briefly touched a figure no human had ever reached, roughly $1.33 trillion, carried by the rising price of SpaceX shares after its record-breaking public offering. The tide has since turned: the stock has slid nearly half from its peak, and his wealth now stands near $684 billion. The fall reflects a familiar human pattern, where enthusiasm born of a bold debut meets the slower judgment of markets, and where a single fortune rises and falls with the faith placed in a few enormous ambitions.
Musk's Wealth Halves as SpaceX Shares Fall 46% From Post-IPO Peak
A $600 billion loss, larger than any other billionaire's entire fortune
On a June afternoon, Elon Musk's fortune briefly touched a figure no human had ever reached, roughly $1.33 trillion, carried by the rising price of SpaceX shares after its record-breaking public offering. The tide has since turned: the stock has slid nearly half from its peak, and his wealth now stands near $684 billion. The fall reflects a familiar human pattern, where enthusiasm born of a bold debut meets the slower judgment of markets, and where a single fortune rises and falls with the faith placed in a few enormous ambitions.
On June 16, SpaceX shares closed near $202, the highest they had ever closed, and Elon Musk's net worth reached about $1.33 trillion. For a brief moment, he was the first trillionaire in history. Now, according to Bloomberg, his fortune has fallen to $684 billion, a loss of more than $600 billion.
The decline began with SpaceX itself. The company's $75 billion IPO, the largest ever, was priced at $135 a share and opened at $150. Within three sessions the stock had climbed more than 50%, but since that peak it has dropped about 46%, reaching a record low of $108.37, below the offering price.
The pressure may not be over. As many as 911.5 million shares become tradable as lockup periods end this month, and analysts warn that this could push prices lower still.
Tesla has added to the strain. Its shares are down 17% since its July 22 second-quarter report, which showed its first profit miss in more than two years and negative free cash flow. Higher AI-related costs, lower selling prices and weaker regulatory credit revenue weighed on results, even as deliveries grew. Musk plans to spend over $25 billion this year on self-driving, robotaxis and humanoid robots, nearly triple last year's outlay. He insists the bet will pay off handsomely, but investors are watching closely.
The coming weeks will test both companies: whether SpaceX can absorb the new share supply, and whether Tesla's expensive vision can justify its cost.
On June 16, SpaceX shares closed at nearly $202 apiece, the highest close the stock has had, and Elon Musk's net worth stood at around $1.33 trillion. That made him, briefly, the first trillionaire in history. By the time of this reporting, his fortune had fallen to $684 billion, according to Bloomberg.
The drop is more than $600 billion. Bloomberg's figures show that this loss is larger than the total wealth of any other billionaire, with the single exception of Musk himself.
The cause is a steep slide in SpaceX stock since its June debut. The company raised $75 billion in what was the largest IPO ever. The offering was priced at $135 per share, and trading opened at $150, an 11% premium. Within three sessions the shares had climbed by more than 50%. Since that peak they have fallen about 46%, to a record low of $108.37, which is below the IPO price.
The pressure may not be finished. IPO lockup expiries are due this month, and as many as 911.5 million shares will become eligible for trading. Bloomberg reports that this could add further selling pressure on the price.
SpaceX is not the only drag on Musk's wealth. Tesla shares have dropped 17% since the company released second-quarter results on July 22. For the first time in more than two years, Tesla missed profit estimates, and it reported negative free cash flow. The company is spending heavily on artificial intelligence and robotics.
Tesla's profitability was hurt by higher operating expenses tied to AI, lower average selling prices, and weaker regulatory credit revenue. This happened even though vehicle deliveries rose, the company said on Wednesday.
Musk plans to spend more than $25 billion this year, almost triple what Tesla spent last year. The money is going toward self-driving technology, robotaxis and humanoid robots, rather than the car business that generates most of the company's revenue. On the post-earnings call, he told analysts this was a massive capex year, but that he was confident the investments would yield incredible returns. Investors are increasingly focused on that push, as Tesla expands its unsupervised robotaxi services.
The lockup expiries this month are the next test for SpaceX shares, and Tesla's heavy spending plans will remain under scrutiny from investors.
Citações Notáveis
This is a massive capex year, but I am confident that all the things that we are investing in will yield incredible returns.— Elon Musk, Tesla post-earnings call
Quer a matéria completa?
Leia o original em The Economic Times ↗
Economy & Finance