Elon Musk’s fortune drops $350bn as SpaceX sheds nearly $1tn in market value

By Editor

Elon Musk has reportedly lost an estimated $350 billion in personal wealth within a week after a steep decline in SpaceX shares wiped nearly $1 trillion from the company’s market value.

According to Forbes estimates, Musk’s net worth fell from approximately $1.4 trillion on June 16 to about $1.1 trillion, as SpaceX stock extended a sharp post-IPO selloff.

The aerospace and satellite company suffered three consecutive sessions of heavy losses, with its shares plunging 16 per cent on June 22 alone. The decline pushed the stock more than 30 per cent below its June 16 peak.

SpaceX, which briefly approached a market capitalisation of $3 trillion following its blockbuster IPO, has now fallen to roughly $2 trillion in value. The company has consequently slipped from being the world’s fourth most valuable listed company to seventh place, behind Taiwan Semiconductor Manufacturing Company.

Musk, who owns about 38 per cent of SpaceX through shares and stock options amounting to roughly 4.8 billion shares, has borne the brunt of the selloff. Forbes estimates that Monday’s market decline alone erased more than $152 billion from his fortune.

Investor enthusiasm had initially driven SpaceX shares nearly 67 per cent above their IPO price of $135, with the stock briefly reaching about $225 per share. The rally reflected strong demand for exposure to Musk’s space, satellite and artificial intelligence ventures.

However, the company has since lost an estimated $928 billion in market value from its June peak, marking one of the most significant and rapid declines in paper wealth ever recorded on public markets.

Market analysts attribute the selloff to mounting concerns over SpaceX’s valuation, with some investors questioning whether the company’s post-listing surge was sustainable. Governance concerns have also emerged, particularly regarding Musk’s extensive voting control relative to other shareholders.

Investor sentiment weakened further after MSCI reportedly assigned SpaceX a CCC rating—the lowest category on its sustainability scale—citing environmental, social and governance risks as well as weaker performance compared with industry peers.

Adding to concerns, SpaceX disclosed plans to issue bonds to refinance a short-term loan rather than pursue a fresh equity offering. Analysts viewed the move as an indication that the company continues to face substantial funding requirements despite raising $75 billion through its IPO.

The broader technology sector downturn also intensified pressure on the stock. The Nasdaq 100 was on track to lose more than $1 trillion in market value as semiconductor and major technology stocks came under heavy selling pressure.

Earlier reports indicated that SpaceX shares had already been extending losses in premarket trading, eroding a substantial portion of gains recorded by investors following the company’s market debut.