- Elon Musk’s fortune took a major hit after a sharp decline in the value of SpaceX.
- It has wiped out an estimated $350 billion from his net worth within a week.
- The drop came days after Musk became the world's first trillionaire following the company's blockbuster stock market debu
Elon Musk's fortune took a major hit after a sharp decline in the value of SpaceX, wiping out an estimated $350 billion from his net worth within a week. The drop came days after Musk became the world's first trillionaire following the company's blockbuster stock market debut.
The rocket company's shares have fallen nearly 30 per cent from their recent peak, reducing the company's market value from around $2.9 trillion to just over $2 trillion, The Telegraph reported.
The decline has dragged Musk's net worth from approximately $1.45 trillion to below $1.1 trillion, as per Forbes estimates. The loss alone exceeds the total net worth of several of the world's second-richest man, Larry Page, whose fortune is estimated at around $299 billion.
Monday alone saw more than $152 billion wiped from Musk's net worth, according to Forbes. Musk's wealth is closely tied to SpaceX, where he owns an estimated 38 per cent stake, including billions of shares and stock options.
Investor sentiment weakened after SpaceX announced plans for its first investment-grade bond offering, aimed at raising at least $20 billion to support its artificial intelligence initiatives.
The offering has intensified concerns over whether major companies can sustain the significant investments needed to fund large-scale AI development.
At its June 16 peak, SpaceX briefly overtook Amazon and Microsoft to become the world's fourth-largest company by market capitalisation. However, it has now slipped to seventh place, behind Taiwan Semiconductor Manufacturing Company (TSMC).
On Monday, SpaceX shares fell more than 16 per cent, marking the company's steepest single-day decline since going public. Despite this, SpaceX shares continue to trade above their IPO price. The stock closed at $154 on Monday, compared with its listing price of $135.
The decline in SpaceX shares came amid broader weakness in technology and AI-related stocks. The Nasdaq fell 1.3 per cent on Monday, weighed down by declines in major technology stocks including Alphabet and Amazon. Investor sentiment also remained under pressure in Asia, where South Korea's Kospi index briefly halted trading after a sharp sell-off in AI chipmakers, while Japan's Nikkei dropped 3.6%.
