Elon Musk could soon be down to his last thousand billion dollars after the share price of his recently floated SpaceX came under pressure this week. Musk became the world’s first trillionaire this month when SpaceX floated on the stock market, but after a 16% drop in SpaceX’s shares on Monday, his wealth has declined to $1.1tn, according to Forbes estimates.
Monday's Drop Wiped Out Over $152bn
Monday’s drop alone wiped out more than $152bn from Musk’s net worth, Forbes reported. Most of those who bought into SpaceX since it floated on 12 June are facing smaller losses. SpaceX’s shares closed at $156 last night, slightly above the $150 opening price on 12 June, but sharply below the record high of $225 set a week ago. The IPO was priced at $135, so everyone who took part is still in the money.
SpaceX Value Falls Nearly $1tn
The weakness in the last week has dragged SpaceX’s value down from a peak of about $2.99tn to just over $2tn last night, a fall of almost $1tn. Danni Hewson, head of financial analysis at AJ Bell, said: “SpaceX might have seemed charmed after its record-breaking IPO and subsequent rally, but it’s come down to earth with a bump over the past couple of days, with shares at one point falling below the opening price on its market debut. Post-IPO stocks often enter a period of volatility as the market gets to grips with the new entrant, some investors rush to cash out, and others assess at what price they are willing to jump in. For a stock like SpaceX, a lot of decision making might have been emotional and based on the anticipation of huge leaps forward in space exploration and utilisation, but investing should be something treated with clear eyes and patience, even when such huge numbers are involved.”
Tesla Shares Also Fell
Musk was also hit by a 5.8% drop in Tesla’s shares yesterday, as the tech sector was affected by a broad selloff in AI and semiconductor stocks.
Upcoming Economic Data
The agenda for today includes: 9am BST: IFO survey of Germany’s business climate; 10am BST: House of Lords Financial Services Regulation Committee hearing on the consumer insurance market; 10:15am BST: Treasury Committee hearing on the Financial Services and Markets Bill; Noon BST: US mortgage approvals data; 3pm BST: US new home sales data for May.
