Elon Musk Is No Longer a Trillionaire — Bloomberg

Due to the plunge in Tesla and SpaceX shares during Tuesday’s stock market sell-off on June 23, Elon Musk’s net worth fell to $957 billion, according to the Bloomberg Billionaires Index. Just a few days earlier, at the peak of the stock market rally following SpaceX’s record-breaking IPO, his net worth had reached more than $1.2 trillion.

The tech sector has come under pressure in recent days due to concerns about a potential “AI bubble” and a possible increase in U.S. interest rates, according to Business Insider. However, Forbes takes a more optimistic view of Musk’s net worth—according to the magazine’s ranking, the businessman still holds the title of trillionaire.

The hardest hit was the aerospace company SpaceX, which remains one of Musk’s main and most valuable assets: as of Tuesday, the billionaire’s stake in the company was valued at $744 billion (nearly 80% of Musk’s total net worth), Business Insider reports. The remainder of the losses is linked to his $158 billion stake in Tesla, which also declined amid the broader market sell-off.

As a result of trading on June 23, Tesla’s stock price fell by nearly 6%, partly following an accident involving a Tesla Model 3 near Houston (on Friday evening, the car veered off the road and crashed into a residential building, killing the person inside; the driver told police that Tesla’s Autopilot system was engaged at the time of the accident, according to Barron’s). SpaceX shares showed strong gains following its June 12 IPO but subsequently declined. Although shares of Musk’s aerospace and AI company closed slightly higher on Tuesday—at around $156 per share, — this valuation is 30% below SpaceX’s intraday high of $225, recorded on June 16.

A number of analysts have already cast doubt on SpaceX’s high valuation and its ambitious goals—ranging from building space data centers to sending people to Mars. The imminent end of the so-called lock-up period (the period during which shares are restricted after an IPO), when early investors and shareholders will be able to sell their shares and lock in profits, will be a serious test for the company, Business Insider notes.

Current price fluctuations are standard market practice, notes Business Insider. Andrew Slimmon, a senior portfolio manager at Morgan Stanley Investment Management, specifically called the current sell-off “healthy.” If SpaceX shares resume their upward trend, Elon Musk’s net worth will quickly recover, the publication concludes. Nevertheless, analysts at The Motley Fool warn that even after a three-day decline, the company’s shares are trading at a high market premium (with a price-to-sales ratio exceeding 40x), and the company itself remains unprofitable.

This article was AI-translated and verified by a human editor