Musk's Net Worth Halved by SpaceX Plunge... $1 Trillion Lost in One Month

Posted "Former Trillionaire" on Social Media
Concerns Mount Over Additional SpaceX Share Price Declines

Elon Musk, CEO of SpaceX and Tesla. Photo by AP Yonhap News

Elon Musk, CEO of SpaceX and Tesla, has seen his net worth slashed in half over the past month. The sharp declines in the share prices of SpaceX and Tesla, both led by Musk, have resulted in a steep drop in his estimated assets.

According to Forbes, a U.S. business media outlet, as of the morning of the 27th (local time), Musk’s estimated net worth stood at $695.7 billion (approximately KRW 1,019 trillion). This is roughly half the $1.45 trillion record high he reached on June 16 last month. It is the first time in about seven months—since December 18 last year—that Musk’s net worth has fallen below $700 billion.

After SpaceX went public on June 12, Musk’s fortune soared for a time, earning him the nickname “Trillionaire” as the world’s richest person both inside and outside the United States. However, with his net worth now cut in half due to the recent share price declines, Musk himself posted a self-deprecating message on X (formerly Twitter), referring to himself as a "former Trillionaire."

The plunge in SpaceX's share price dealt a major blow to Musk's net worth. On this day, SpaceX shares closed at $113.50, down 1.36% from the previous session, falling well below the IPO price of $135. Compared to its intraday high of $225.64 last month, the price has dropped 49.7%. Initially, SpaceX's share price surged on expectations for its dominant position in the U.S. private space industry and synergies with the artificial intelligence (AI) sector.

However, there are growing concerns among investors due to excessive investment controversy in the AI sector and the fact that, so far, there are no profitable businesses other than Starlink. Unless SpaceX delivers clear earnings growth in its first earnings report following the IPO on August 4, further declines are expected.

Tesla, the electric vehicle company, is also struggling with weak share performance. Tesla's share price closed at $309.22 on this day, down 29.4% from $438.07 at the beginning of the year. Its second quarter results fell short of market expectations, deepening investor disappointment. Tesla’s revenue for the second quarter, announced on July 23, jumped sharply by 26% year-on-year to $28.236 billion. However, during the same period, operating profit plunged by 57% to $398 million, and net profit fell 5% to $1.114 billion.

Experts believe Musk's assets could shrink further depending on SpaceX's future share price trends. Forbes, citing a report from Morgan Stanley, warned, "If SpaceX's share price drops below $100, investors may lose confidence in the value of space and AI-related businesses and move to sell off their holdings en masse."

This content was produced with the assistance of AI translation services.