Elon Musk’s net worth falls below $1 trillion as SpaceX shares drop after IPO

Musk’s net worth exceeded $1 trillion in June after his spaceflight and artificial intelligence company went public.

Elon Musk has seen his personal fortune shrink by more than $600 billion in just over a month after a sharp decline in the shares of SpaceX and Tesla, even as he continues to double down on artificial intelligence, autonomous driving and robotics. Musk's net worth has fallen to around $684 billion from a peak of nearly $1.33 trillion reached on June 16, when SpaceX briefly propelled him to become the world's first-ever trillionaire.The wealth erosion alone exceeds the total net worth of every other billionaire except Musk himself.The decline has been driven primarily by a steep correction in SpaceX shares following the company's blockbuster market debut.After raising $75 billion in what became the largest initial public offering in history, SpaceX listed at $150 per share, above its IPO price of $135.Investor enthusiasm initially pushed the stock up more than 50 per cent within three trading sessions, with shares touching a record closing high of nearly $202 on June 16.However, the rally proved short-lived. SpaceX shares have since slumped about 46 percent from their peak to a record low of $108.37, wiping out hundreds of billions of dollars from Musk's fortune.The pressure on Musk's wealth has been compounded by weakness in Tesla shares. The electric vehicle maker's stock has dropped 17 percent since the company reported its second-quarter earnings on July 22.Tesla missed analysts' profit estimates for the first time in more than two years and posted negative free cash flow as spending on artificial intelligence and robotics accelerated.The company said higher operating expenses tied to AI investments, lower average selling prices and weaker regulatory credit revenue weighed on profitability despite an increase in vehicle deliveries.Despite the near-term financial pressure, Musk remains committed to an aggressive investment strategy.He has said Tesla plans to spend more than $25 billion this year, nearly three times the amount invested last year, to expand its capabilities in AI-powered self-driving technology, robotaxis and humanoid robots.

Musk’s wealth, which peaked at about $1.33 trillion on June 16, now stands at $684 billion.

Musk’s wealth peaked at around $1.33 trillion on June 16, when SpaceX shares soared to a lifetime closing high of nearly $202 apiece. However, as the shares crashed, Musk’s net wealth dropped to $684 billion, Bloomberg reported. Notably, the over $600 billion wealth erosion is higher than any other billionaire's total wealth, except Musk himself.

SpaceX achieved a major milestone last Friday by successfully launching its Starship rocket into orbit from the company’s Starbase facility in South Texas. However, the achievement did little to prevent a sharp decline in Elon Musk’s personal wealth.According to the Bloomberg Billionaires Index, Musk’s fortune has fallen below the level recorded before SpaceX’s initial public offering was priced last month. The decline comes after Musk briefly became the world’s first trillionaire.Musk’s net worth reached a peak of approximately $1.33 trillion on June 16 but has since dropped to around $684 billion. 'More Handsome Than Elon': Chinese BBQ Restaurant Owner Goes Viral For Looking Strikingly Like Elon Musk - VIDEO The decline of more than $600 billion in just over a month represents one of the largest wealth losses ever recorded among individuals listed on Bloomberg’s ranking of the world’s 500 richest people.SpaceX shares, officially held under Space Exploration Technologies Corp., reached a closing high of $201.80 on June 16. Since then, the stock has declined 46% to a record low of $108.37.The company could face further pressure as around 911.5 million shares held by insiders and early investors are expected to become available next month. Increased selling from these shareholders could weigh further on the stock price.Elon Musk Becomes World’s First Trillionaire, Net Worth Crosses $1.1 Trillion After Record SpaceX IPO Short interest in SpaceX has also increased significantly. Data from S3 Partners showed that short positions rose to 219.3 million shares as of July 29, compared with 23.3 million shares on June 16. The figure represents more than one-third of the shares available for public trading.SpaceX is scheduled to announce its quarterly earnings next week, marking its first financial report since becoming a public company.

The CEO’s net worth has fallen from $1.45 trillion to below $700 billion