Elon Musk's wealth falls $240 bn as SpaceX slump deepens, but he remains a trillionaire

Just days after becoming the world's first trillionaire following SpaceX's blockbuster stock market debut, Elon Musk has seen his fortune shrink by nearly $240 billion as a sharp correction in the aerospace and artificial intelligence giant's shares erased much of the post-IPO euphoria.

According to the Forbes Billionaires List, Musk's net worth has fallen from a peak of about $1.32 trillion on June 16 to around $1.1 trillion. The decline coincides with a steep fall in SpaceX's share price, which has lost more than 30% from its post-listing high.

SpaceX, which made its Nasdaq debut on June 12 with a valuation of around $1.8 trillion, initially enjoyed a spectacular rally. Investor enthusiasm over Musk's long-term vision for the company propelled the stock more than 50% above its offering price of $135, lifting the company's market capitalization to over $2.7 trillion and briefly making it more valuable than technology giants Amazon and Microsoft.

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However, the rally proved short-lived.

Shares touched a peak of $277 on June 16 but have since undergone a dramatic reversal. On Tuesday, the stock traded around $149, extending a week-long slide that has wiped out roughly $1 trillion in market value from the peak. The latest decline has pushed the stock to its lowest level since the company's debut.

Despite the heavy sell-off, SpaceX shares showed signs of stabilising in pre-market trading on Tuesday. As of 17:05 IST, the stock was indicated at $156.23, up 1.05% from Monday's close of $154.60. The previous session had seen shares plunge 16.43%, or $30.40, amid growing concerns over the company's financing plans and weakness across global technology stocks.

The sharp correction follows reports that SpaceX is marketing investment-grade bonds, a move viewed by analysts as the first step towards a borrowing programme that could eventually reach $20 billion. The additional capital is expected to support the company's rapidly expanding artificial intelligence ambitions.

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The recent decline has also reduced gains for retail investors who received IPO allocations through brokerage platforms such as Robinhood, Fidelity and SoFi. While many investors obtained only small allocations, the shares were purchased at the IPO price of $135, allowing them to remain in profit despite the correction.

SpaceX remains the biggest contributor to Musk's wealth. According to Forbes, the billionaire owns roughly 38% of the company, including 4.8 billion shares and about 350 million stock options with an exercise price of $8.40 per share. SpaceX accounts for more than half of his fortune.

Musk also owns nearly 11% of electric vehicle maker Tesla and holds restricted stock that could add another 8% stake if he remains with the company until 2028. In addition, his portfolio includes stakes in Neuralink and The Boring Company.

Although Musk remains comfortably the world's richest person, the latest episode underscores how closely his wealth is tied to market sentiment surrounding SpaceX and the volatility that often accompanies highly valued technology companies.

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