Elon Musk Loses $350bln as SpaceX Shares Tumble

By Samuel Akpan

Elon Musk has seen his net worth plunge by an estimated $350 billion in just one week, falling to around $1.1 trillion on Tuesday as a steep selloff in SpaceX shares wiped out nearly $1 trillion from the company’s market value in three straight sessions of declining trade.

SpaceX shares dropped 16% on June 22, extending their decline from the June 16 peak to more than 30%.

The stock had surged nearly 67% above its IPO price of $135 per share shortly after listing, briefly reaching around $225 per share as investors sought exposure to Musk’s space, satellite and AI interests.

The company’s market capitalisation peaked near $3 trillion in the days after the IPO, briefly making it the world’s fourth most valuable listed firm ahead of Amazon and Microsoft, but has since fallen to about $2 trillion, placing it seventh globally behind Taiwan Semiconductor Manufacturing Co.

Forbes estimates show that SpaceX has shed roughly $928 billion in market value since its June 16 high in what ranks as one of the fastest destructions of paper wealth in stock market history.

Musk, who holds approximately 38% of the company through 4.8 billion shares and stock options, felt the impact directly.

His net worth, which Forbes had placed at $1.4 trillion as of June 16 and which briefly crossed the $1 trillion threshold after the IPO, making him the first person to reach that mark, has now retreated to about $1.1 trillion.

Monday’s drop alone erased more than $152 billion from his fortune.

The selloff stems from mounting investor unease over SpaceX’s elevated post-IPO valuation.

Analysts have also flagged concerns about the company’s governance, particularly Musk’s substantial voting control compared with other shareholders.

Sentiment deteriorated further after MSCI assigned SpaceX a CCC rating, the lowest on its seven-tier sustainability scale, pointing to significant environmental, social and governance risks and the firm’s weaker standing relative to peers on those issues.

On Monday, SpaceX disclosed plans to issue bonds to refinance a short-term loan rather than sell new shares that would dilute existing investors.

The move comes after the company raised $75 billion in its IPO and underscores that its cash requirements remain substantial despite the large capital infusion.